The Epic Games vs. Apple battle started in 2020, but its long-term effects are finally reshaping how subscription apps operate on iOS. If you’re building a subscription business and relying on Apple’s App Store, this guide outlines the latest rule changes, legal outcomes, and how to use them to your advantage.
A Quick Recap: Epic Games vs. Apple
- 2020: Epic Games launched its own payment system in Fortnite, violating Apple’s policies. Apple removed Fortnite from the App Store.
- 2021–2023: U.S. courts mostly sided with Apple but ruled that Apple must allow developers to link to alternative payment options.
- 2024–2025: Apple implements policy changes under pressure from courts and global regulations like the EU’s Digital Markets Act.
Sources:
- Epic v. Apple case summary – CNBC
- U.S. Supreme Court denial – Reuters
- Apple Developer Policy Updates
What’s Changed: Apple Subscription Policy Updates
1. External Links Are Now Allowed (with conditions)
Apple now permits subscription apps to link users to external websites for purchasing and managing subscriptions.
Allowed:
- Linking to your own website to handle payments.
- Using the StoreKit External Purchase Entitlement in qualifying regions (currently U.S., EU, and others).
- Displaying a clearly labeled external link following Apple’s guidelines.
Not allowed:
- Promoting non-Apple payment systems inside the app without Apple’s wording.
- Circumventing design rules or confusing users about Apple vs. external billing.
More details: StoreKit External Entitlement – Apple
2. Apple’s Commission Structure Is Changing
Apple still charges a commission on in-app purchases and subscriptions, but some nuances apply:
- Standard cut: 30% in Year 1, then 15% from Year 2 onward.
- External payments: Apple may still charge a reduced commission (typically 12%-27%) even if users subscribe outside the App Store.
- Reader apps (like Spotify and Netflix) may qualify for even more leniency under certain exemptions.
More info: Apple Commission Overview – Apple Developer
3. EU’s Digital Markets Act Brings More Flexibility
If you distribute your app in the European Union, things are opening up:
- Apple now allows alternative app stores and third-party payment processors.
- Apps can now be sideloaded or distributed outside the App Store.
- You can present pricing comparisons and transparent checkout flows.
Read more:
Growth Opportunities for Subscription Startups
Control the Checkout Funnel
You can now build frictionless web flows for subscription purchase and onboarding—giving you full control over copy, upsells, A/B tests, and design.
Own the Customer Relationship
External flows mean:
- Better first-party data
- Easier email collection
- Richer lifecycle marketing (onboarding, retention, winbacks)
Cut Platform Fees
Encourage signups through external web flows where possible—especially for high-LTV cohorts or annual plans.
Run Promotions Without App Store Constraints
Offer trial discounts, bundles, or flash promos directly via your website without needing Apple’s approval.
Caution: What to Watch Out For
- Apple can still reject apps that don’t comply with link formatting or UI standards.
- You may need to report off-platform revenue for Apple’s commission calculations in the U.S. and other markets.
- Hybrid billing systems (Apple IAP + external billing) can create customer support complexity.
Action Steps for Founders
- Audit your billing stack. Consider tools like RevenueCat, Superwall, or Adapty for managing multiple payment flows.
- Update your funnel. Create a seamless web-based onboarding experience for non-iOS users or those routed from email/social.
- A/B test your pricing. Now that you control parts of the funnel, test offers by region, channel, or persona.
- Stay updated on rulings. The legal and regulatory landscape is still shifting. Subscribe to feeds like Stratechery or Mobile Dev Memo for ongoing insights.
Final Take
Apple is no longer a black box when it comes to subscriptions. If you’re a founder or growth marketer, this is your chance to:
- Reduce fees
- Own the customer lifecycle
- Test and learn faster
The walls around the App Store aren’t down—but there are now well-marked exits. Use them wisely.
Need help redesigning your subscription funnel?
Visit us at subsgrowth.com
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