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.
Apple under fire for new App Store rules and fees in Brazil
Early today, Apple announced that app developers will have the option to offer external in-app and out-of-app purchases in addition to Apple’s own IAP system, following a agreement with CADEthe country’s competition watchdog.
Under the new terms, developers who remain on 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 who use a third-party in-app payment system will pay a commission of between 10% and 21%, while apps that link to external payment options will pay a commission between 10% and 18%.
Meanwhile, developers who distribute apps through alternative marketplaces 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, although they differ significantly from the rules in force in the European Union.
The company has repeatedly argued that its focus on Japan offers better conditions than those required by the EU Digital Markets Law. Apple is now defending the same from the conditions in Brazil.
However, not everyone agrees with that assessment. 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 the CADE investigation do not 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 excessive tracking requirements. The policy continues to grant Apple an unfair advantage and impede innovation in app stores with a significant new tax on commerce.”
Epic Games Similarly criticized the new terms, saying:
“Today, Apple announced the same anti-competitive policies for alternative app stores and out-of-app purchases in Brazil that they are trying to apply in Japan. Intentionally designed to thwart competition, Apple’s junk terms and fees discourage developers from distributing outside of the App Store and offering alternative payment options. This means that consumers will not have access to special offers outside of the App Store and will likely face a third-party app store install flow similar to what Apple requires in Japan.”
Epic also pledged to “continue working with Brazilian policymakers 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 coming months.”
What do you think of Epic and the Coalition for App Fairness’s reaction to Apple’s new terms? Let us know in the comments.
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