Apple is reportedly buying high-value app ads to make up for an epic ruling

0
39
This site can earn affiliate commissions from the links on this page. Terms of use.

Apple and Epic Games clashed in court recently, and Apple came out with a near-total victory. But Apple isn’t used to not getting what it wants, and it doesn’t take this small loss. With Apple forced to let the developers direct customers to non-Apple payment options, the iPhone maker has resorted to buying high-value app ads that direct potential customers to its App Store, so it can continue to receive its share of subscriptions, Forbes reports.

Epic’s lawsuit against Apple was officially about Fortnite, but Epic tried to make it a referendum on the entire model of the App Store. According to Epic, allowing Apple to rule iOS software with an iron fist is a violation of antitrust regulations. The court disagreed, Apple gave a major win … except when it comes to payments. The judge ruled that Apple cannot prevent developers from encouraging their users to purchase products and subscriptions from non-App Store platforms. This deprives Apple of its revenue cut, which can be as high as 30 percent.

As the changeover date approaches, some well-known developers complain that Apple has started advertising their apps. It might seem like a Good problem to have, but Apple has an ulterior motive. By shopping for ads for apps like HBO Max, Tinder, and Masterclass, you can make sure you keep getting the App Store cut. Apple has reportedly been doing this for about two years, but it’s ramping up as the required changes take effect.

It all started when Epic tried to sell V-Bucks to Fortnite without paying Apple its share.

Apple has publicly expressed its disclosure that it was forced to make even this small change. He attempted to have the order suspended, but a judge last week ordered the company to comply by December 9. Apple, meanwhile, claims this will be the first time it will allow developers to direct users to an external link, and it needs time to decide how to proceed. However, it appears that Apple just takes some time to figure out how it will make up for the lost revenue. Apple, for its part, argues that has been running App Store ads for years, and he sees no problem with it.

There is nothing stopping Apple from advertising apps in the App Store and it could help some developers in the long run. However, it reduces the number of customers who might end up buying things directly from the developer now that such things are possible and makes ads more expensive if the developer wants to compete. Epic’s lawyers would likely point to this as further proof that Apple is behaving in an anti-competitive manner. Regardless, the courts have so far been unwilling to rule over Apple’s excesses.

Now read:

LEAVE A REPLY

Please enter your comment!
Please enter your name here