The battle between Epic Games and Apple is bringing turmoil to the app world, with new challenges and changes to distribution fees.
For games distributed through the Store , Epic will take a 12% cut of revenue, which is the same fee it charges for Windows and Mac PCs. Apps for will receive 100% of the revenue they earn for the first six months, with Epic taking no cutapps that offer in-game purchases and use their own payment processing.
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A game sold through the Epic Games Store will have to pay both Epic's 12% fee and Apple's European Core Technology Fee (CTF) of €0.50 for each first annual install after one million installs. Apps distributed through the App Store under Apple's updated business terms will pay the CTF and a commission of 10 to 17%, down from the typical 15 to 30% cut Apple imposes.
App Store apps that earn less than $1 million annually will pay 10% under the App Store Small Business Program, and that's also the commission Apple charges for subscriptions that customers keep for more than a year. More successful apps earn more than $1 million and new subscriptions are subject to a 17% commission that . Note that Apple also charges an additional three percent commission for using the in-app payment system, so developers who distribute through the App Store and use in- app purchases will pay anywhere from 13 to 20%.
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As an example, an app with fewer than a million downloads distributed through the App Store under the new business terms will pay the CTF and the 10% fee, a total amount ultimately lower than the CTF + 12% fee that the Epic Games store will collect. From Epic Games: “The Epic Games store has an 88/12 revenue share for developers distributing paid apps on PC and Mac , and this will continue on mobile platforms. Developers pay nothing to Epic to distribute free apps. If developers offer in-app purchases, they can choose to use our payment processing system with the 88/12 revenue share or use a third-party payment processing provider and keep 100% of that revenue, just as they do today.”
Epic Games CEO Tim Sweeney called Apple's changes and EU fees a "malicious new example of Compliance Pretense" and vowed that Epic Games will continue to "argue in courts and regulators that Apple is breaking the law," even as it prepares to launch the Epic Games store.
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The Epic Games Store is expected to come to iPhone in the European Union before the end of 2024.It will not be available in the United States and other countries.
Source of information: macrumors.com
