As Epic Games pointed out in its recent spoof video, it’s ironic that since the first Apple Macintosh was released in 1984, the digital world has only moved further towards that totalitarian, monopolized state that Orwell first warned us about. After all, when any one organization can entirely dictate how other, smaller organizations operate, competition can no longer thrive.
This is essentially what the battle between Epic Games and Apple is all about, and why Epic broke its contract with Apple in protest of its policies. Specifically, the 30% cut Apple asks for from in-game purchases, and its block of methods such as Mastercard, Visa and PayPal, which charge 2.5% to 3.5%.
What happened next?
Since then, Epic has gone head-to-head with Apple in the US courts after Epic pulled the hugely popular game, Fortnite, from Apple’s App Store in response to the breach of contract. Epic also added multiple payment options to its site to circumvent the tech giant. Apple went on to pull its support for Unreal Engine, Epic’s software development platform, reinstating it after being mandated to do so by the court.
The battle has taken even more twists and turns along the way, including Epic taking Apple to court in Australia, and Apple announcing a reduction in its commission for smaller developers from 30% to 15%.
Encouraging tech development, flexibility, and transparency
This case drives home the point that any monopoly on the way people pay, and the way companies accept payments, will eventually become disadvantageous to those involved. As such, a payments provider should be flexible, transparent and fair, to ensure its merchants’ needs are met.
Reducing the hold of the monopoly goes on to benefit both public and private companies, which depend on friction and competition in the market to continue to promote technological evolution, all while maintaining reasonable prices.
After all, the advancement of technology is in the best interests of everyone, but the monopolization of it is not.
A partner for change
If we’ve learned anything from the battle between Epic Games and Apple, it’s that change is on the horizon. Going forward, more companies will be inclined to play the field to find the right payments solution for them and avoid higher costs. Like with Epic Games, many others may opt for in-app payments to benefit from lower prices.
Should merchants wish to switch or extend their offering to include in-app payments, we’re here to help.
Credorax provides a flexible payments platform and API-embedded solutions which can be supported without interrupting the service they provide.
With full transparency, smart acquiring, a payments gateway, and big bank services for any sized merchant, Credorax is proud to be able to stand alongside its partners through every change in season, in-app or not. Because there will always be unforeseen circumstances ahead. But it is vital that merchants are able to adapt accordingly with a payments partner that will change with them – in any currency, on any platform, and with any payment method.