Epic Games plans to impose a commission fee on apps downloaded from the upcoming Epic Games Store launching soon for iPhone users in the European Union. The company announced during its event at the Game Developers Conference (GDC) held yesterday (via 9to5Mac).
Developers who plan on offering their games through the Epic Games Store on iOS will see the Fortnite maker take a 12 percent cut from app downloads and other transactions. However, Epic Games is offering a few incentives, such as offering to collect no commission whatsoever during any app’s first six months in its store. In addition to developers keeping 100 percent of their app revenue during that period, Epic Games says that it won’t collect any fees from in-app purchases processed through its payments system.
Developers on the Epic Games Store and other alternative app marketplaces will still have to pay Apple its Core Technology Fee (CTF). The Core Technology Fee stipulates that developers have to pay Apple pay €0.50 for each app installed per year after the first one million downloads. The fee has come under fire from many developers, who argue that it could bankrupt small developers who see their apps become popular with European iPhone users. However, Apple estimates that less than one percent of all developers will have to pay it.
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Following the introduction of the Digital Markets Act (DMA), Apple has reworked its commission structure for apps distributed within the App Store and elsewhere with the iOS 17.4 update. Apple will now charge small developers a fee of 10 percent per app transaction through the App Store, down from 15 percent. Big developers’ rate is now at 17 percent, down from 30. Apple is also charging a 3 percent fee for using its in-house billing system for in-app purchases, bringing the commission rate to a range of 13 to 20 percent plus the CTF.
Epic Games plans to launch the Epic Games Store sometime before the end of this year. Apple first hoped to thwart Epic from launching its alternative marketplace on iOS by terminating its developer account, but ultimately backed down after threats from the European Commission. Epic Games Store will only be available to iPhone users in Europe, with no access worldwide.
