Big Trouble Incoming? Microsoft, Meta, X, And Match Group All Join Epic's Legal Petition Against Apple

On Wednesday, tech giants Microsoft, Meta, X, and Match Group joined game developer Epic Games in protest against Apple's failure to guide consumers to pay for digital content in a cheaper way.

The four companies submitted a joint document to the court, stating that Apple has obviously violated a previous court order, deliberately avoided the spirit of the order, and made it difficult to guide consumers to pay for digital content in a cheaper way. Apple must formally respond to these lawsuits by April 3.

The origin of the dispute traces back to three years ago. In 2021, Epic sued Apple, claiming that Apple's attempt to require consumers to obtain applications through the App Store and charging developers up to 30% purchase commission violate antitrust laws.

Later, a U.S. court issued an injunction to Apple in September 2021, requiring Apple to allow developers to provide links, buttons, and other guides to consumers to choose payment methods other than the Apple App Store.

In January of this year, Apple told the court that it would change its App Store terms so that app developers can  process purchases outside of its app store.

However, according to Meta, Microsoft, X, and Match Group, the results led by the details of Apple's changed terms are not much different from the previous situation.

For example, Apple's new terms require app developers to apply for permission to link to other payment systems and still impose restrictions on all aspects of how apps communicate with users. In addition, although Apple agreed to lower the App Store commission, it simply reduced the original 30% commission rate to 27%.

Last week, Epic sued Apple again for contempt of court, stating that the new rules introduced by Apple effectively circumvented the court's injunction. The document states: Apple's conduct shows that it has no intention of complying with this Court's directive.

Meanwhile, tech companies Microsoft, Meta, X, and Match also joined the ranks supporting Epic. They stated that Apple's behavior for all practical purposes further strengthened the anti-manipulation rules that the court had ruled illegal, supported Apple's excessive commission, and harmed the interests of consumers and developers.

In the submitted documents, Meta emphasized that it should be allowed to pay outside the system through Apple's in-app, informing users of the way to pay for promoted posts on its platform.

Meta stated that promote posts are usually used by small businesses to promote their products on the Meta and Instagram platforms. In February, Meta announced that it would pass on the fees charged by Apple to users, actually raising the price of promoted content by 30%.

Microsoft said that Apple's plan prevents it from directing users to Microsoft's own payment platform, where it can offer better promotions, discounts, or ways to manage subscriptions.

X and Match Group said that Apple's newly proposed commission structure will eat into the income of independent content creators, affecting thousands of other developers and their millions of users, undermining the purpose of the order.

Apple declined to comment specifically on the charge, only forwarding a document it submitted to the U.S. District Court for the Northern District of California in January to the media. In this January document, Apple claimed that it fully complied with the injunction and will protect consumers and the integrity of the Apple ecosystem, ensuring that developers will not be completely unprofitable.

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