Y Combinator has filed an amicus brief in support of Epic Games in its long-running legal battle with Apple over App Store practices. The startup accelerator, best known for backing Airbnb, Stripe, and Dropbox, argues that Apple’s restrictions create unfair barriers for startups and limit competition across the tech industry.
The conflict began in 2020 when Apple removed Fortnite from the App Store after Epic introduced an alternative in-app payment option to bypass Apple’s 30% commission. This move sparked one of the most high-profile legal disputes in Silicon Valley, with Epic accusing Apple of running a monopoly over iOS app distribution and payments. Apple maintains its rules protect user privacy and security, but the case has become a test of how much control large platforms should have over developers.
Y Combinator’s filing adds a significant voice to Epic’s side. The accelerator emphasized that Apple’s rules not only affect major companies like Epic but also harm smaller developers who depend on flexibility to grow. By requiring all payments to go through Apple’s system and blocking alternative app distribution, the App Store rules increase costs and reduce opportunities for innovation.
Epic has long argued that consumers are also harmed because fewer choices in payment methods and app distribution keep prices artificially high. Y Combinator echoed this point, saying Apple’s closed ecosystem stifles competition, reduces incentives to innovate, and ultimately leads to worse outcomes for users.
The support from Y Combinator is notable because it reflects the concerns of the broader startup community. Early-stage companies often operate with limited resources, and the restrictions imposed by Apple can make scaling far more difficult. With one of Silicon Valley’s most influential accelerators siding with Epic, the case is no longer just about a dispute between two large companies but about the future of digital marketplaces.
If Epic prevails, the outcome could reshape how the App Store operates. Potential remedies include allowing sideloading, permitting third-party app stores, or reducing Apple’s commission fees. Such changes would give developers more freedom and consumers more choice, altering the dynamics of the mobile app economy.
The case remains one of the most important antitrust issues facing Apple. With support from Y Combinator, Epic’s fight highlights growing industry pressure to challenge the control Apple holds over app distribution and payments on iOS.
via MacRumors
