An Epic Games-backed group is not impressed by changes Apple said it would make to its App Store amid rising antitrust pressure, calling its concessions to app developers a "sham."
On Thursday evening, Apple announced that it is changing the rules of its App Store, saying for the first time it would let app developers tell users about how to pay for apps outside of the App Store, where Apple takes a cut of purchases.
The changes were part of a proposed settlement in a class-action lawsuit that small app developers had filed against Apple in 2019.
The class-action lawsuit is separate from the high-profile antitrust lawsuit that Epic Games filed against Apple, though it covers some similar ground.
The changes Apple is proposing would conceivably make it easier for app developers to direct customers to alternative payment forms outside of the App Store. Apple only allows developers to use its payment system for purchases made with its App Store, and it takes a mandatory 30% cut from those purchases.
It is unclear when the changes will go into effect, and a judge still needs to approve them as part of a settlement in the class-action lawsuit. The California judge overseeing the settlement, Yvonne Gonzalez-Rogers, is also presiding over Epic Games v. Apple.
Epic Games has long chafed at Apple's restrictions, saying they were monopolistic. Epic has called for more far-reaching changes, like allowing alternative payment system within apps, the ability to escape Apple's mandatory fees and letting rival app stores, like the Epic Games Store, exist on iOS.
Epic launched its antitrust crusade against Apple in August 2020 when its popular game Fortnite was kicked off the App Store after Epic introduced its own payment system within the game, The News & Observer reported.
Shortly after Apple announced the changes to its App Store on Thursday, the Coalition for App Fairness — a group cofounded by Epic to put pressure on Apple — said the changes did not go far enough.
"Apple's sham settlement offer is nothing more than a desperate attempt to avoid the judgment of courts, regulators, and legislators worldwide," Meghan DiMuzio, executive director of the coalition, said in a statement.
"This offer does nothing to address the structural, foundational problems facing all developers, large and small, undermining innovation and competition in the app ecosystem," she added. "Allowing developers to communicate with their customers about lower prices outside of their apps is not a concession and further highlights Apple's total control over the app marketplace. ... We will not be appeased by empty gestures and will continue our fight for fair and open digital platforms."
Epic Games declined to comment directly on Apple's proposed changes, directing The News & Observer to the Coalition for App Fairness' comment.
Lawyers for the plaintiffs in the class-action suit against Apple called the changes meaningful.
"This hard-won settlement will bring meaningful improvements to U.S. iOS developers who distribute their digital wares through the App Store, especially for those small developers who bring so much creativity and energy to their work," Steve Berman, an attorney representing developers, said in a statement.
Apple said the changes show that the App Store continues to evolve to serve businesses. It also noted the safety of its iPhones, one of its main arguments in court for allowing such tight regulations of its App Store.
"From the beginning, the App Store has been an economic miracle; it is the safest and most trusted place for users to get apps, and an incredible business opportunity for developers to innovate, thrive, and grow," Phil Schiller, an Apple executive who oversees the App Store, said in a statement. "We would like to thank the developers who worked with us to reach these agreements in support of the goals of the App Store and to the benefit of all of our users."
Apple and Epic still await a verdict in the antitrust lawsuit, which is taking place in California.
Gonzalez-Rogers could issue a ruling in the case in the near future. It is unknown whether Thursday's announcement from Apple will be a factor in her decision.
This story was produced with financial support from a coalition of partners led by Innovate Raleigh as part of an independent journalism fellowship program. The N&O maintains full editorial control of the work. Learn more; go to bit.ly/newsinnovate.
