Since October 5, Apple has raised prices for apps and subscriptions on the App Store in all countries and territories that use the euro, an option possibly due to the weakening of the euro against the US dollar.
Tim Sweeney, CEO of Epic Games, the company that has long been battling Apple in the courts by demanding alternative payment systems in the App Store (bypassing Apple’s own payment system), believes the increase is unjustified.
In a statement, Sweeney compared the owner’s Apple to the tenants, with the latter not being able to go anywhere else, as there are no alternatives to the App Store.
“Imagine if the landlord tells his small commercial tenants that he has to raise prices without them having a say or where else to go. That’s what Apple does to developers for no other reason than Apple’s profit. They unilaterally impose price increases on developers in different countries, Without any justification. The developers can’t help but comply, because the App Store is the only way that gives them access to more than a billion iOS users.”
App prices on the App Store and in-app purchases are determined by pre-defined sales ranges from the digital store to developers, with a base price currently starting at €0.99 and above, and price lists from which Apple derives commissions on the sale of each “category”, or range expected price.
The new price ranges (PDF) that developers can choose to sell their apps on the App Store from October 5 start at €1.19 (compared to €0.99 previously), up to a maximum of €1,199 (compared to €999 previously).
Apple periodically reviews the pricing tables for apps sold on the App Store. An increase in prices does not change the commission rates associated with each “category”, or the expected price range. For users with active in-app subscriptions, prices will not change.
In addition to the Eurozone, in-app price increases have also been triggered in China, Egypt, Japan, Malaysia, Pakistan, Poland, South Korea, Sweden and Vietnam.
Remember that the primary reason for 30% commissions and alternative payment methods is why Epic sees Apple rivals. All story developments are available from this page.