What the Epic Games vs. Apple Injunction What does it mean for Software Companies -

Nov 26, 2023

Whatever your view about the subject regardless of whether you believe it or not, Epic Games or Apple were the winners in the recent U.S. Injunction verdict of U.S. District Judge Yvonne Gonzalez Rogers sure did capture what the minds of community of mobile developers.

"When we heard of it and learned about it, we stopped the things our business was currently conducting" one of the developers said to us in an earlier conference call. "It shut down our shop temporarily. Everybody wanted to read the entire ruling to understand the meaning behind it."

If Apple contests the ruling, Gonzalez Rogers ruling will permit developers to connect to payment services that aren't the Apple's (like !) for in-app purchases. This is excellent news for businesses that make money through the upsell and upgrade pricing model.

Apple had 90 days from the ruling of September 10 to make changes to the system which allows outside payment options. The company has since requested the court to stay its ruling, an application that is likely to be ruled on in November.

We're not sure what's going to happen within the courtroom, however we believe this decision could create an opportunity for increase significantly the growth of SaaS as well as companies that deal with software, particularly ones that employ a product-driven growth strategy.

New Opportunities for Revenue from Mobile Apps

Businesses that are avoiding using mobile apps, Google and Apple's policy adjustments, as well as the Gonzales-Rogers ruling could result in significant revenues.

I am expecting to see many B2B companies taking advantage of the convenience that app stores provide when they're paired with more reasonable ways of payment.

Robust desktop platforms could use mobile devices to gain competitive advantage on the market

In the SEO market, some of the most well-known software such as Ahrefs, MOZ Pro, and SpyFu are not yet available in the form of mobile apps for devices on Google Play or Apple App Store. For B2B markets like this sales and discovery processes are much more likely to happen through desktop search results as well as platforms that are powerful like those will perform better on desktops.

Moving forward, however the availability of mobile apps could provide a edge for businesses looking to attract new customers. It also provides customers with the ability to access their services at any point.

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

Growth potential of markets in different areas

Another issue I've been looking about is the way this may influence the mobile market generally. It appears that Google Play and Apple marketplaces are the most liked. Google Play and Apple marketplaces hold the advantage on the global market by providing greater than triple the quantity of applications in comparison to other marketplaces.

Will the Google/Apple domination of the mobile market begin to unravel? If so then we could be seeing these smaller marketplaces increase in popularity and significance.

As of now, we cannot determine the ROI could be when investing on smaller markets, however it could be worthwhile to consider depending on the intended market.

Recent changes on Apple and Google Marketplaces

Even before even the Gonzalez Rogers decision, we had seen changes to marketplaces, Apple and Google marketplaces which favored smaller developers.

Until recently the two tech giants took a 30 percent cut of all revenues generated by their marketplaces for apps. However, at the start of the year 2021, Apple cut its portion for any developer earning less than $1M, up to 15%.

Google immediately reacted to the move, matching Apple's decision of cutting its percentage from 30 percent to 15 percent on the first $1 million in revenue from the app store.

The change took place as both companies faced public scrutinization of their business practices, including federal and state lawsuits in the U.S. as well as similar antitrust instances that were pending within South Korea and the European Union.

Are There Opportunities for Your Business?

If you're already using the App Store, it's time look into the opportunities the change will bring. If you've been staying away from apps you might want to get your life back in order!

Based on the outcome of what the judge decides based on the result of the trial depending on the outcome of the court case, you could reach the point of being able to avoid the 30% price cut on app purchases. This could be a good opportunity to taking into consideration when developing your plans for the future.

In the event that Apple will need to allow third party processors to use its app We will be happy to assist.

Do In-App Pays work in Mobile Applications?

The quick answer is yes!

We'll be talking more on this subject over the next few weeks.

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