What the Epic Games vs. Apple Injunction What it means in the case of Software Companies -

Nov 21, 2023

Whatever your opinion is on the matter, whether or not you think it or not, Epic Games or Apple won in the recent U.S. Injunction verdict of U.S. District Judge Yvonne Gonzalez Rogers certainly captured the focus of the mobile developer community.

"When we learned about it and heard about it, we stopped doing what our company was doing" one of the developers said to us in an earlier call. "It shut down our shop for a time. Everyone wanted to go the entire ruling to understand what it meant."

In the event that Apple appeals, the Gonzalez Rogers ruling will allow developers to connect to payment platforms that are not Apple's (like !) for purchases in-app great news for companies that monetize with the upsell or upgrade price model.

Apple received 90 days after the September 10 ruling to make changes to the system that allows such external payment methods. It has since asked the court to stay its decision -- a request that is expected to be decided on during November.

We're not sure what's going to take place in the courtroom however we believe this decision could result in an opportunity to grow significantly for SaaS as well as software-related companies- especially those using a product-led growth model.

New Revenue Opportunities From Mobile Apps

Companies that be avoiding the use of mobile applications, Google and Apple's policy changes plus the Gonzales-Rogers ruling could result in significant revenues.

I am expecting to see many B2B companies taking advantage of the convenience that apps stores offer when they are paired with much more reasonable payment methods.

Robust desktop platforms could use mobile devices to gain a advantages in the market

As an example, in the SEO market, some of the most popular software like Ahrefs, MOZ Pro, and SpyFu are not yet available as an app for mobile devices in Google Play or Apple App Store. In B2B markets like this, the discovery and sales processes are much more likely to take place in desktop searches, and powerful platforms like these are going to perform better on desktops.

Moving forward, however the availability of mobile apps could provide a edge for businesses looking to attract new customersin addition to providing users with access to their products at any time.

Also, I think that mobile apps may have greater return in investment (ROI) moving forward.

Growth potential of markets in other areas

Another aspect I've been enquiring over is what this could influence the mobile market in general. As of now it appears that Google Play and Apple marketplaces are the most popular. Google Play and Apple marketplaces have the upper hand in global markets by offering greater than triple the number of applications as compared to the other marketplaces.

Will the Google/Apple domination of the mobile market start to fall apart? If so then we could begin to see these small-sized marketplaces increase in popularity and significance.

As of now, we aren't being able to determine what the return on investment would be for making investments in smaller markets but it may be worth considering, based on your intended audience.

Recent Modifications in Apple as well as Google Marketplaces

Even before the Gonzalez Rogers decision, we were seeing modifications in marketplaces, Apple and Google marketplaces that favored small developers.

Until recently, both tech giants were taking a 30 percent reduction from all revenue generated by their app marketplaces. However, at the start of 2021, Apple decreased its percentage for any developer earning less than $1M up to 15%.

Google immediately reacted to the move, matching Apple's decision to cut its share from 30 percent to 15 percent for the first $1M in app-store revenue.

This change occurred while both companies faced public scrutinization of their business practices, including federal and state lawsuits in the U.S. and similar antitrust instances that were pending in South Korea and the European Union.

Is There an Opportunity for Your Company?

If you're currently on the App Store, you'll want to research what opportunities this change brings. If you've been avoiding apps perhaps it's an opportunity to get back on track!

Depending on what the court decides depending on the outcome of the court case, we could be at a point where you could avoid the 30% price cut on app purchases. It's certainly an opportunity worth considering in the course of planning your future development plans.

If and when Apple has to permit third-party payment processors into its application, will be ready to help.

Are In-App Payments Supported in Mobile Applications?

The quick answer is yes!

We'll have more to say about this topic over the next few weeks.