Following Apple’s announcement that developers will be able to distribute apps through alternative marketplaces and use alternative payment methods in Brazil, Epic Games and the Coalition for App Fairness criticized the company’s new terms. Here are the details.
Earlier today, Apple announced that app developers will have the option to offer in-app and off-app external purchases in addition to Apple’s own IAP system following an agreement with CADE, the country’s competition watchdog.
Under the new terms, developers who remain in the App Store and use Apple’s IAP system will pay a 5% processing fee, plus an App Store commission ranging from 10% to 21%. Those using a third-party in-app payment system will pay a commission between 10% and 21%, while apps that link to external payment options will pay a commission between 10% and 18%.
Developers distributing apps through alternative marketplaces, meanwhile, will pay a 5% Core Technology Commission on sales of digital goods and services.
In essence, Apple’s new terms in Brazil closely mirror those introduced in Japan last year, while differing significantly from the rules in effect in the European Union.
The company has repeatedly argued that its approach in Japan offers better terms than those required under the EU’s Digital Markets Act. Apple is now making the same case for the terms in Brazil.
Not everyone agrees with that assessment, however. In a statement to 9to5Mac, the Coalition for App Fairness (whose founding members include Basecamp, Deezer, Epic Games, Match, ProtonMail, Spotify, and Tile, among others) said:
“The terms Apple announced today following CADE’s investigation don’t create an open and competitive app ecosystem in Brazil. Developers who choose to distribute their apps through alternative stores or offer payments outside of the App Store are penalized for doing so with high fees and overbearing tracking requirements. The policy continues to guarantee Apple an unfair advantage and prevents innovation in app stores with a significant new tax on commerce.”
Epic Games similarly criticized the new terms, saying:
“Today, Apple announced the same anticompetitive policies for alternative app stores and purchases outside apps in Brazil that they are trying to get away with in Japan. Intentionally designed to thwart competition, Apple’s terms and junk fees dissuade developers from distributing outside the App Store and from offering alternative payment options. This means consumers won’t have access to special offers outside the App Store and will likely face a similar burdensome third party app store install flow that Apple requires in Japan.”
Epic also pledged to “keep working with policymakers in Brazil to open up the mobile app ecosystem,” and confirmed that the company is “full speed ahead to bring the Epic Games Store to iPhones in the next few months.”
What do you think of Epic’s and the Coalition for App Fairness’s reaction to Apple’s new terms? Let us know in the comments.
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