Apple’s App Store policies are under fire from Y Combinator, which has stepped into the ongoing legal clash between Apple and Epic Games. The prominent startup accelerator submitted an amicus brief urging the court to uphold prior rulings against Apple’s anti-steering rules—policies that restricted developers from pointing users to outside payment options and imposed hefty fees in doing so. Y Combinator argues that these restrictions have stifled innovation at its roots.
In their filing, the firm referred to the so-called “Apple Tax”—the standard 30% cut Apple takes from in-app purchases—as a barrier that can make the difference between a startup being able to grow or being stuck. A 27% fee on external payments, introduced as a workaround, was criticized as merely a repackaged version of the initial restriction, masquerading under a different name. With recent court decisions mandating Apple to remove such blocks, Y Combinator sees a new opportunity to reconsider app-based ventures that were once deemed too financially fragile to back.
Y Combinator emphasized that the real-world impact of these fees is far greater than any relief offered by temporary programs for small developers—these initiatives pale compared to the overarching ambition of most startups to break past modest revenue thresholds and scale significantly.
As the appeals process continues, the next courtroom hearing is set for October 21. For the startup ecosystem, the outcome could determine whether app store economics remain tilted in favor of dominant platforms—or if a more equitable environment for mobile innovation emerges.
