On April 30, the U.S. Supreme Court declined to hear Apple’s appeal in its legal battle with Epic Games. This means the lower court’s rulings, including those found in contempt of prior orders, remain in place. It means that Apple may now have to allow app developers to enable users to utilize alternative payment methods outside of Apple’s in-app purchase system.
Background
- Key Changes for Developers:
- External Payment Links: Developers can now direct users to external purchasing options, including their own websites.
- Commission Fees: Apple can no longer charge commission on external purchases outside the App Store.
- The ruling opens up the possibility of transactions happening outside the App Store.
- Apple has filed an appeal.
- There are considerations for advertisers around security, privacy, and ensuring a seamless customer experience.
For those unfamiliar with the case, Epic Games filed an antitrust lawsuit against Apple in 2020, arguing that Apple’s App Store policies were anti-competitive, particularly regarding the use of Apple’s payment system for in-app purchases.
The key issue Epic had outlined was the use of ‘anti-steering rules’, which prevent developers from directing users to alternative payment systems.
Following the ruling on April 30th, Apple filed an appeal, seeking to challenge the ruling, so the back-and-forth is likely to continue for some time.
However, the April 30th decision could still bring about a major shift. Opening up transactions within the App Store could effectively bring about significant changes for iOS apps.
For example, developers could include links in their apps that take users to external websites to complete purchases (bypassing Apple’s 15–30% commission). This opens the opportunity for direct customer relationships, increased margins, and alternative monetization strategies.
Of course, there are more than just dollars at stake. There has also been a change in advertisers’ potential to build customer relationships. Marketers will have the option to build first-party relationships, customize conversion experiences, and the user journey.
Of course, with new freedom comes new responsibility. Advertisers must pay even closer attention to onboarding and user flows, and attribution, privacy, and performance measurement will all evolve.
This ruling marks a potential turning point in our beloved app space. The app ecosystem is slowly shifting from a platform-first to a brand-first environment, and with this comes an opportunity for bold brands to differentiate.
Considerations:
- Onboarding flows and user journey mapping to account for off-app conversion paths
- Creative and CRO testing for external checkout pages
- First-party data strategy to capitalize on direct relationships
- Cross-channel media buying optimized for performance beyond the iOS Store
- Security and privacy risks that could arise with customers being allowed to complete in-app purchases via external sites and payment methods
- Inconsistent CX and interruptions in the user journey, customers are familiar with the App Store experience, and may find being directed elsewhere uncomfortable
What could happen next:
Apple has filed an appeal, so the case will continue to bubble along. In the meantime, Apple may reduce its fees or favor Apps using In-App Purchase (IAP). Small and medium developers may continue to use the Apple IAP to ensure conversion, fraud prevention, and privacy issues continue without disruption.
In Summary
Platforms are changing, yet users still expect seamless, value-driven experiences, so brands must reduce friction wherever possible. The brands that win will be those that build for the future, not the rules of the past.
Want to talk Performance Marketing or App Store Strategy? We have expert teams that can advise and consult across performance marketing topics, from measurement to ASO. Contact us to find out more.
