Epic skirts Apple's 30% commission fee by implementing 'direct' payments
Epic just announced a permanent price drop for V-bucks and other digital purchases, but there's a caveat for mobile players -- Fortnite players on both iOS and Android will need to pay Epic directly.
Epic's ongoing fight against Apple's App Store commission fees continues. The company has instated a permanent price drop to all digital purchases for Fortnite, provided they do not pay through Google or Apple.
"Currently, there are no savings if players use Apple and Google payment options, where Apple and Google collect an exorbitant 30 percent fee on all payments," Epic says. "If Apple and Google lower their fees on payments, Epic will pass along the savings to players."
Players can pay Epic directly through both the iOS and Android app, though it's not clear how this is possible. According to the company's FAQ, as pointed out by The Verge, they believe they're in the right.
"Thousands of apps on the App Store approved by Apple accept direct payments, including commonly used apps like Amazon, Grubhub, Nike SNKRS, Best Buy, DoorDash, Fandango, McDonald's, Uber, Lyft, and StubHub. We think all developers should be free to support direct payments in all apps."
While it may be true that the companies mentioned above don't have to pay the 30 percent transaction fee, there's an important distinction to be made. Companies like DoorDash, McDonald's, Uber, and Best Buy provide users with physical goods.
Epic, on the other hand, sells digital goods. Apple charges a 30 percent transaction fee on all one-time digital payments. It remains to be seen if either Apple or Google will take action against Epic for this move.
Epic also assures customers that these sorts of payments are every bit as secure as the ones processed through Apple.
"In operating Fortnite on open platforms and operating the Epic Games Store, Epic has processed over $1,600,000,000 of direct payments successfully, and uses industry-trusted encryption and security measures to protect customer transactions."
Epic has long fought back against Apple's commission fee on digital goods, joined by companies like Spotify.
Companies like Epic and Spotify are not the only ones concerned about Apple's App Store practices. The U.S. Department of Justice and state attorneys general begun launching an antitrust investigation into Apple's App Store after developers continue to raise concerns over anticompetitive behavior.
In June, the European Union antitrust authorities officially launched two investigations into Apple, specifically surrounding the App Store and with Apple Pay.
Epic's ongoing fight against Apple's App Store commission fees continues. The company has instated a permanent price drop to all digital purchases for Fortnite, provided they do not pay through Google or Apple.
"Currently, there are no savings if players use Apple and Google payment options, where Apple and Google collect an exorbitant 30 percent fee on all payments," Epic says. "If Apple and Google lower their fees on payments, Epic will pass along the savings to players."
Players can pay Epic directly through both the iOS and Android app, though it's not clear how this is possible. According to the company's FAQ, as pointed out by The Verge, they believe they're in the right.
"Thousands of apps on the App Store approved by Apple accept direct payments, including commonly used apps like Amazon, Grubhub, Nike SNKRS, Best Buy, DoorDash, Fandango, McDonald's, Uber, Lyft, and StubHub. We think all developers should be free to support direct payments in all apps."
While it may be true that the companies mentioned above don't have to pay the 30 percent transaction fee, there's an important distinction to be made. Companies like DoorDash, McDonald's, Uber, and Best Buy provide users with physical goods.
Epic, on the other hand, sells digital goods. Apple charges a 30 percent transaction fee on all one-time digital payments. It remains to be seen if either Apple or Google will take action against Epic for this move.
Epic also assures customers that these sorts of payments are every bit as secure as the ones processed through Apple.
"In operating Fortnite on open platforms and operating the Epic Games Store, Epic has processed over $1,600,000,000 of direct payments successfully, and uses industry-trusted encryption and security measures to protect customer transactions."
Epic has long fought back against Apple's commission fee on digital goods, joined by companies like Spotify.
Companies like Epic and Spotify are not the only ones concerned about Apple's App Store practices. The U.S. Department of Justice and state attorneys general begun launching an antitrust investigation into Apple's App Store after developers continue to raise concerns over anticompetitive behavior.
In June, the European Union antitrust authorities officially launched two investigations into Apple, specifically surrounding the App Store and with Apple Pay.
Comments
Is that what you think? Haha. These types of developers are nothing more than parasites.
Look, I get it and think Apple needs to do something about how the App Store is run, but these developers who want what amounts to a free ride are just being greedy and stupid. It is App Store revenue that allows Apple to give away free OS upgrades, which in turn allows Apple to push the platform (and developers) forward.
Maybe Apple should create tiered fees for their Developer Program?
$99/year to develop apps sold through the App Store - Apple gets their 30% cut. Basically the same as it is now.
$999,999/year to develop apps sold via outside payment system - Apple gets nothing extra.
Some of these larger developers could easily cover a million a year. And smaller developers can still start with a hundred dollar fee and if/when their app takes off, switch to the higher tier.
Uh-oh, Apple apologists are stuck in a quandary on this one!
Umm, nope. This isn't a "loop hole", it's blatant violation of the developer agreement. Did you read the article?
That said, I wish that Epic Games would not do this. There is no evidence that either Epic or their consumers are hurt by the 30% fee. A small, struggling indie company would have a better standing to make this case, not the #1 gaming title in the world for the last 3 years. Besides Epic can be accused of wielding its own market position in a dubious manner, and should were this unnecessary dispute get that far.
What is interesting to me is Apple pays Epic $6.99 of the $9.99. Why is Epic charging players an extra $1.00? Is it possible the extra $1.00 is being used to pay credit card fees, infrastructure costs, developer costs and other costs? If so, aren’t these similar fees and costs Apple has to pay to support every upgrade to every app that Epic has on every App Store Apple has around the world?
Kicking Epic off the App Store should be done without delay. Epic could spend its money researching and developing a game device that it owns 100% This store could be used to show other companies how an app store should be managed. Epic will not do this because it knows it wants a free ride on Apple’s App Store and iPhone/iPad to reach as many people as possible without taking the risks necessary to truly be on its own.
Will this be Greg's first big test or will Phil handle it as a legacy issue for the alum?
Nobody gives a damn about your repeated claims of being a developer while spewing all sorts of bullshit other developers know is false.