News Summary

Y Combinator has filed an amicus brief in the ongoing legal battle between Apple and Epic Games, arguing that Apple’s App Store policies have hindered startup innovation. The dispute, originating from Epic Games’ antitrust lawsuit against Apple in 2020, challenges Apple’s practice of taking a 30% fee on all App Store purchases. A court ruling required Apple to permit alternative payment options, but Apple is appealing this decision. Y Combinator, a backer of Epic Games, has expressed that the so-called ‘Apple Tax’ has been a significant barrier to investment in app-based startups, limiting their ability to scale and innovate. The court’s ruling could potentially open new investment opportunities for startups previously restricted by these fees. The next court hearing is scheduled for October 21.