Apple will let developers accept payment outside App Store, in major concession

Apple announced it would make major changes to its App Store as part of a settlement with developers, following years of mounting regulator scrutiny and legal challenges.

Apple will let developers tell its iPhone and iPad customers about ways to pay for apps outside the official App Store, it said in a news release late Thursday.

The move would be the biggest change Apple has made in response to accusations that it has monopoly powers.

Companies including Fortnite-maker Epic Games of Cary have alleged Apple wields too much control over how people can purchase apps for iOS devices, forcing them to go through the official App Store which charges a 30 percent commission.

The settlement is the iPhone giant’s greatest allowance to aggrieved developers following years of regulatory scrutiny of its App Store rules. Earlier this summer, a bipartisan pair of senators introduced legislation that would have prohibited companies from requiring developers to use their payment system.

The company’s App Store rules are also being scrutinized by the U.S. Justice Department.

In a separate antitrust case, the case between Epic Games and Apple unfolded in court over three weeks in May. Epic launched its antitrust crusade against Apple in August 2020 when its popular game Fortnite was kicked off the App Store after Epic introduced its own payment system within the game, The News & Observer reported.

Judge Yvonne Gonzalez Rogers has not yet issued a ruling in that case, which could have a major effect on the business models of both companies.

Apple CEO Tim Cook has long claimed the tightly controlled store is necessary to weed out malware, scams and other unsavory apps. However a June analysis by The Washington Post found that of the 1,000 highest-grossing apps on the App Store, nearly 2 percent were scams.

The proposed App Store changes, announced in a news release, are still pending court approval and Apple did not give a date on when they would be released.

The Washington Post’s Cat Zakrzewski and Heather Kelly and The News & Observer’s Zachery Eanes contributed to this report.