Earlier this month, the judge in the Epic v. Apple antitrust case ruled in Apple’s favor in 9 out of 10 decisions
Importantly, Apple was deemed not a monopoly. However, the one major ruling that went in Epic’s favor – which was the crux of the lawsuit – allows gaming companies (or any transactional companies) to utilize in-app payment processing services outside of Apples App Store platform.
Apple’s App Store, as well as Alphabet’s Google Play, collect fees ranging from 15% to 30% of all revenues generated by developers from in-app purchases. Last year, Apple generated over $60 billion in revenue from it’s App Store in-app purchase fees.
Now, with the ruling, the App Store (and likely Google Play) must allow developers and gaming companies choice in whom processes these in-app transactions. This means it is highly likely that competition will drive down the “costs” of in-app purchases, which developers have been absorbing.
As a result, Apple’s App Store revenue growth will likely slow, as new alternatives hit the marketplace.
The ruling takes effect December 9th. Tim Cook, CEO of Apple said he’s “looking forward to moving forward” after the ruling and has not said whether Apple will appeal this decision or not.
Read more about the Epic v. Apple decision, HERE
Source: https://www.theverge.com/2021/9/17/22679724/tim-cook-epic-apple-antitrust-ruling-employee-meeting