Apple Inc. has relaxed the App Store’s terms of service to comply with a 2023 antitrust ruling by a federal appeals court — but it’s being criticized for charging a hefty fee for processing app purchases through outside payment platforms.

Until today, iOS apps distributed in the U.S. could only process user purchases with a payment platform operated by the iPhone maker. Going forward, developers may direct users to competing payment services. However, they must still give consumers the option to make purchases using Apple’s platform.

The change relates to a high-profile antitrust case that Epic Games Inc. brought against the iPhone maker in 2020. That year, Epic added the ability to make in-app purchases in its flagship mobile game “Fortnite” using a payment platform not operated by Apple. In response, the iPhone maker removed the game from the App Store, which is what prompted Epic to file its antitrust lawsuit.

Last year, the Ninth Circuit Court of Appeals ruled in favor of Apple on nine of the case’s 10 counts. The judges determined that the iPhone maker may continue requiring iOS apps to use its payment platform for in-app purchases. At the same time, the ruling stated that Apple must let developers include a link to competing payment platforms.

The iPhone maker and Epic both appealed the decision to the U.S. Supreme Court. The justices declined to hear the case on Tuesday, which means that last year’s Ninth Circuit ruling is now in effect. The change Apple made today to its policy concerning third-party payment platforms is intended to bring the App Store into compliance with the ruling.

Before adding an in-app link to an external payment service, developers must request permission to do so from Apple via a newly launched web form. By default, the company will apply a 27% fee to in-app purchases processed via third-party platforms. It will lower the fee to 12% for developers who have signed up to its small business program, as well as in the case of automatically renewing app subscriptions active for at least two years. 

When app users tap a link to an external payment method, they will be greeted by a pop-up disclaimer from Apple. The disclaimer states that the company “is not responsible for the privacy or security of purchases made on the web.” The text also informs users that Apple can’t verify the pricing and promotions offered by the app’s developer.

The company has published a set of technical requirements for in-app links to external payment mechanisms. According to Apple, such links must open in the default browser of the user’s device and not directly within the app interface. Additionally, developers may not use redirect or intermediate links. 

In a post on X today, Epic Chief Executive Tim Sweeney criticized Apple’s changes. He described the fee the iPhone maker will apply to purchases made via external payment platforms as anticompetitive and also took issue with the technical restrictions on in-app payment links. Sweeney added that Epic intends to contend the changes in court. 

Photo: Andrew/Flickr