Epic Games CEO Says Apple Should Be Paid for App Review Only, Not External Purchase 'Junk Fees'

Epic Games CEO Tim Sweeney has said that he will never agree to share revenue with Apple for external purchases linked from iOS apps, even after a U.S. appeals court ruled that Apple is entitled to charge a reasonable fee for such transactions.

Speaking to The Verge following the U.S. Court of Appeals decision that partially modified the injunction in the ‌Epic Games‌ v. Apple case, Sweeney outlined his position on what Apple should and should not be allowed to charge developers as the dispute returns to the district court for further proceedings. The appeals court ruled that Apple must be allowed to collect some form of compensation for purchases made through external links in iOS apps, reversing a lower court order that had permanently barred Apple from charging any commission at all.

Sweeney acknowledged that Apple incurs operational costs in reviewing apps that include external payment links and said Epic would accept flat, submission-based fees tied directly to that work. However, he rejected outright the idea that Apple should receive any percentage-based commission on revenue generated outside the App Store.

Sweeney characterized the appeals court ruling as a decisive rejection of Apple's longstanding approach to ‌App Store‌ fees. He said the decision 'completely shuts down, I think, for all time, Apple's theory that they should be able to charge arbitrary junk fees for access.' He went on to suggest that the U.S. decision could influence regulators abroad, arguing that other countries would be unlikely to permit Apple to charge fees that a U.S. court had found to be unlawful.

However, the appeals court did not block Apple from charging commissions on external purchases. Instead, it said the district court went too far by permanently banning all commissions, calling that approach more like a punishment than a corrective measure. Although the court agreed that Apple deliberately violated the original injunction by making external links hard to use, it ruled that Apple must still be allowed to cover its costs and receive some payment for the use of its intellectual property.

As a result of the ruling, the case has been sent back to the Northern District of California to determine what constitutes an appropriate fee structure. The appeals court said that Apple may not charge any commission on purchases made via external links in iOS apps until the district court approves a rate.Tags: Epic Games, Epic Games vs. AppleThis article, "Epic Games CEO Says Apple Should Be Paid for App Review Only, Not External Purchase 'Junk Fees'" first appeared on MacRumors.comDiscuss this article in our forums