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Apple responds to Epic Games' desire for exclusive rights in the "Apple Tax" controversy

Author: Mash Yang
2020-08-23
in App, Market dynamics, apple, observe
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Epic Games and Apple have been embroiled in a dispute over Fortnite's inclusion of an option to bypass Apple's app payment mechanism, allowing players to purchase in-game virtual currency at a lower price. Apple's response emphasized that Epic Games had expressed interest in bypassing Apple's payment mechanism as early as late June, and even went so far as to request that its Epic Games Store app, which sells game content, be listed on the Apple App Store.

Apple responds to Epic Games' desire for exclusive rights in the "Apple Tax" controversy

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According to EPIC Games, they believe that such an adjustment will provide a better user experience for players on the iOS platform. This statement is naturally based on the fact that players can purchase virtual goods in the app at a lower price. If you think about it from another perspective, it naturally means that developers can avoid paying Apple the "Apple tax" of 30%, thereby obtaining more profits through the app.

Apple subsequently declined Epic Games' request, arguing that Epic Games CEO Tim Sweeney's request was a plea for special treatment. However, Epic Games later responded to the claim, emphasizing that it wasn't asking for special treatment, but rather hoped Apple would relax App Store restrictions to allow iOS developers greater benefits.

Many developers believe that it is unreasonable for Apple to charge a commission of 30% or more through its payment mechanism. Some developers believe that it is not unreasonable for Apple to charge a commission based on platform development and maintenance, but still hope that the proportion can be lower.

As for Apple's position, it is naturally based on providing a huge software and hardware ecosystem, allowing developers to gain greater profit opportunities through this ecosystem. Therefore, charging through profit-sharing is not excessive. However, this situation was later questioned whether it was using its own position to monopolize market development.

Apple responds to Epic Games' desire for exclusive rights in the "Apple Tax" controversy

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Tags: App StoreappleApple feeEpic GamesShare profitApple Tax
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Mash Yang

Mash Yang

Founder and editor of mashdigi.com, and student of technology journalism.

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