Y Combinator Files Brief Supporting Epic Games, Says App Store Fees Stifle Startups
Startup accelerator and venture capital firm Y Combinator (YC) today filed an amicus brief supporting Epic Games in Epic's continued legal fight with Apple. Y Combinator says that Apple's "anti-steering restraints" have long inhibited the growth and development of technology companies that monetize goods and services through apps.
The company calls on the court to deny Apple's appeal and uphold the order that required Apple to change its App Store linking rules in the United States.
Back in April, Apple was found to be violating a 2021 injunction that required it to let developers direct customers to third-party purchase options on the web using in-app links. Apple had implemented a system for developers to link to external websites in their apps, but it charged an up to 27 percent fee to do so.
Apple was found to be in "willful violation" of the anti-steering injunction, and it was ordered to allow developers to freely link to purchase options outside of the App Store with no fees or restrictions on link format. Apple implemented those changes, but also filed an appeal, so there is potential for the decision to be walked back. Epic Games and now Y Combinator are aiming to prevent Apple from being able to revert to its old App Store rules around linking.
Y Combinator says that it has "long been hesitant" to support app-based businesses subject to "the Apple Tax" because they were poor investments.
A 30% revenue share can easily be the difference between a company that can afford to scale, hire new employees, and reinvest in its product, and one that is perpetually struggling to stay afloat. Understood in this light, the 30% Apple Tax protected from erosion by Apple's anti-steering restraints is not merely a cost of doing business, it is a profound and often insurmountable barrier to entry that stifles competition and innovation at its source.
The enforcement order that's currently in place has already created renewed investor interest in app-based business models that were previously not feasible, according to Y Combinator. The company believes that Apple adds minimal value for the fees that it collects.
Y Combinator suggests that the court end Apple's anti-steering restraints permanently to promote innovation and to allow tech startups to freely compete.
Popular Stories
iOS 26 was released last month, but the software train never stops, and iOS 26.1 beta testing is already underway. So far, iOS 26.1 makes both Apple Intelligence and Live Translation on compatible AirPods available in additional languages, and it includes some other minor changes across Apple Music, Calendar, Photos, and Safari.
More features and changes will follow in future versions,...
Apple is entering its most significant leadership transition in more than a decade as multiple senior executives prepare to depart and CEO Tim Cook begins to shape the company's next generation of leaders, according to Bloomberg's Mark Gurman.
In the latest edition of his "Power On" newsletter, Gurman explained that Jeff Williams, who was viewed as Cook's potential successor for several...
Nearly two weeks after the iPhone 17 series launched, analysts at investment banking firm Morgan Stanley said demand for the devices has been "modestly stronger than we originally expected," based on a combination of extended shipping estimates on Apple's online store and information it gathered from Apple's supply chain.
There has been strong early demand for the iPhone 17, iPhone 17 Pro,...
Apple's website offers a list of nearly 200 new features and changes (PDF file) included in the software update, released last month.
Apple also shared equivalent lists for iPadOS 26 and macOS Tahoe.
iOS 26 is compatible with the iPhone 11 and newer. To install the update, open the Settings app on your iPhone, tap on General, and tap on Software Update.
Below, we have highlighted eight ...
The MacBook Air is Apple's most popular laptop – a thin, fanless machine that wields quiet power thanks to the efficiency of Apple silicon. While the M4 model isn't exactly old, attention is already turning to its successor.
Apple doesn't telegraph new product launches ahead of time, but we can draw a surprisingly clear picture of what to expect by looking at Apple's silicon roadmap,...
After launching new iPhones last month, Apple is promoting iCloud+ with a prominent banner on its home page, in a bid to boost its services revenue. In addition to more storage, all iCloud+ plans include five perks for iPhone users.
As a refresher, iCloud includes 5GB of storage for free. If you want extra storage, you need to subscribe to an iCloud+ plan. In the United States, prices range...
With the second beta of iOS 26.1, Apple updated the design of alarms set on the iPhone, making them harder to dismiss than before.
Stopping an alarm in iOS 26.1 beta 2 requires a new Slide to Stop gesture rather than a simple tap. You can continue to tap to snooze an alarm, but if you want to turn it off entirely, you need to use a swipe.
Transitioning from a tap to a slide gesture to...
A new iPad mini is "absolutely" on the way, according to Bloomberg's Mark Gurman. So what should we expect from the successor to the iPad mini 7 that Apple released a year ago?
Processor and Performance
Apple is working on a next-generation version of the iPad mini (codename J510/J511) that features the A19 Pro chip, according to information found in code that Apple mistakenly shared in...
