On four continents, Apple’s payment control is under attack | Payments Source
Apple has long used its global market power as a blunt instrument, allowing it to dictate the terms of contracts with banks, app developers, and anyone else wishing to enter its ecosystem. He can finally meet his match.
A federal judge recently ruled Apple Must allow developers to use third-party payment options for App Store purchases. Apple and Epic Games are committed to
The App Store is a lucrative business for Apple, with App Store revenue totaling approximately $ 64 billion in 2020 with a profit margin above 75%. Apple charges up to 30% for all digital services sold through its App Store or in-apps, but not physical goods ordered from apps.
The developers bristled against the terms, but few fought back. One exception is Epic, maker of the popular game Fortnite, which challenged Apple by putting third-party payment options in its game. Apple immediately phased out the game, sparking a lengthy court battle that ended with Epic ahead of Apple’s $ 6 million. dollars for payments in the past year, depending on 9to5Mac.
âApp Store revenues are not a small number, and it will take a lot to fill the gap if some of that disappears,â said Thad Peterson, strategic advisor for retail banking and payments for the group. Aite-Novarica.
The Epic Games dispute is just one of many battles that Apple has faced as it tries to expand its mobile wallet, payment app and App Store across multiple markets.
Apple, which fought with Amazon to be the the most valuable company in the world, often clashes with regulators, politicians and rivals who challenge the company’s frequent use of walled garden policies for its technology and huge market shares unfairly hamper competition. Here are a few examples of those battles and a look at how Apple manages to attract banks and merchants to its payment products despite the controversy.