Y Combinator has filed an amicus transient within the ongoing authorized battle between Apple and Epic Video games, arguing that the App Retailer has stifled startup innovation.
We’ve reached out to authorized reps for YC and Apple for remark.
The transient comes through the years-long authorized dispute. Epic Video games first filed an antitrust lawsuit in opposition to the iPhone maker in 2020 in protest of Apple taking a 30% charge for each buy made within the App Retailer, in addition to in-game purchases. Epic claimed in its swimsuit that Apple unlawfully banned builders from telling prospects about fee options to the App Retailer.
A choose ordered Apple to finish its anti-steering coverage, however as a substitute, the corporate applied a hyperlink program that allowed builders to hyperlink to various fee strategies, with the app retailer taking a 27% charge.
In one other grievance, Epic accused Apple of violating the courtroom injunction in opposition to anti-steering, and in April, the choose agreed, leading to an order for Apple to cease imposing restrictions on various fee options and accumulating fee from such strategies.
Apple is interesting that ruling, and that’s why Y Combinator, a backer of Epic Video games, has filed this amicus transient in help of Epic Video games. Y Combinator is asking the courtroom to disclaim Apple’s enchantment.
“Y Combinator — and the bigger enterprise capital group — have lengthy been hesitant to again app-based companies that have been poor investments because of the Apple Tax,” Y Combinator wrote in its submitting. “A 30% income share can simply be the distinction between an organization that may afford to scale, rent new workers, and reinvest in its product, and one that’s perpetually struggling to remain afloat.”
Techcrunch occasion
San Francisco
|
October 27-29, 2025
With the present ruling — that Apple should enable builders to transparently supply various fee choices — the startup investor wrote: “For the primary time in almost 20 years, Y Combinator can significantly think about investing in modern companies that might have been unattainable previously due to the ‘Apple Tax’,” the submitting continued. The Apple Tax refers back to the charges Apple took from App Retailer purchases.
It went on to say that the Apple Tax was a “profound and infrequently insurmountable barrier to entry that stifles competitors and innovation at its supply” and that the courtroom ought to deny Apple’s enchantment and permit the anti-steering rule to face. The subsequent argument is ready to happen on October 21.
We’re at all times seeking to evolve, and by offering some perception into your perspective and suggestions into TechCrunch and our protection and occasions, you possibly can assist us! Fill out this survey to tell us how we’re doing and get the prospect to win a prize in return!
