Microsoft announced on Tuesday that it will allow Epic games, Amazon and other brands to integrate their apps into their marketplace, without having to integrate big-name payment gateways in their apps. This gives third-party developers more room to create apps as per their needs, without relying on gateways like Google Pay. Additionally, Microsoft also announced that it would not take any percentage of the revenue generated by these apps if they are using their own payment gateways.
In response to this, Epic Games Chief Executive Officer Tim Sweeney tweeted “Microsoft is again leading the industry forward with Windows, now an open platform with an open store,”
What’s the story behind Microsoft’s decision?
Apple had recently removed Fortnite, along with a host of other apps, from their App Store due to their in-app payment processes that bypassed the App Store’s own payment gateway. As a result, the brand has been embroiled in a legal battle with Epic Games over a breach of contract. The app had reportedly launched its own payment gateway as Apple takes a 30% from revenue generated by apps when they use the brand’s payment systems.
Apple retaliated by banning Fortnite and the appeals process could take several years. This spells extraordinary losses for Epic Games, and other apps banned for similar reasons.
How will Microsoft deal with Epic Games?
In general, Apple’s commissions range between 15-30%, and developers have criticised the steep rates for ages. Similarly, Google is known to take a 20% cut from apps, however, according to a CNBC report, they are now cutting their commission to 3%.
Microsoft’s announcement, thus, comes as a breath of fresh air for developers struggling to increase revenue while still ensuring that their apps reach a high volume of audiences.
Also Read: Fortnite May Be Banned From The Apple App Store For A Year: Report
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