Epic Games and the App Fairness Coalition criticized the company’s new terms after Apple announced that developers will be able to distribute apps through alternative marketplaces in Brazil and use alternative payment methods. Here are the details.
Apple has come under fire for new App Store rules and fees in Brazil
early today Apple announced app developers will have the ability to offer external in-app and out-of-app purchases in addition to Apple’s own IAP system. Agreement with CADEthe country’s competition watchdog.
Under the new terms, developers who remain on the App Store and use Apple’s IAP system will pay a 5% processing fee, plus an App Store commission of 10% to 21%. Those using a third-party in-app payment system will pay a 10% to 21% commission, while apps that switch to external payment options will pay a 10% to 18% commission.
And developers who distribute apps through alternative marketplaces will pay a 5% core technology commission on the sale of digital goods and services.
In fact, Apple’s new terms in Brazil, while significantly different from those in force in the European Union, closely mirror those imposed in Japan last year.
The company has repeatedly argued that its approach in Japan offers better terms than those required by the EU’s Digital Markets Act. Apple is now doing the same for conditions in Brazil.
However, not everyone agrees with this assessment. In a statement to 9to5Mac, Coalition for Implementation Fairness (founding members include Basecamp, Deezer, Epic Games, Match, ProtonMail, Spotify and Tile, among others) said:
“Following CADE’s investigation, the terms announced by Apple today do not create an open and competitive app ecosystem in Brazil. Developers who distribute their apps through alternative stores or offer payments outside of the App Store are penalized with high fees and excessive tracking requirements. The policy continues to give Apple an unfair advantage and prevents the acquisition of a new commercial tax on the app.”
Epic Games as well criticized new terms says:
“Today, Apple announced anti-competitive policies for alternative app stores and out-of-app purchases in Brazil. Japan. Apple’s terms and conditions, deliberately designed to prevent competition and unnecessary fees, discourage developers from distributing outside the App Store and offering alternative payment options. That means consumers won’t be able to access special offers outside of the App Store, and will likely face a similarly heavy third-party app store install flow that Apple is demanding in Japan.
Epic also pledged to “continue to work with policymakers in Brazil to open up the mobile app ecosystem,” and confirmed that the company is “going full speed ahead to bring the Epic Games Store to iPhones in the next few months.”
What do you think of Epic and the App Fairness Coalition’s response to Apple’s new terms? Let us know in the comments.
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