On August 22, 2025, Y Combinator (YC) submitted an amicus brief in the ongoing legal battle between Apple and Epic Games, arguing that Apple’s App Store rules have significantly hindered startup innovation.
The dispute dates back to 2020, when Epic Games accused Apple of antitrust violations for taking a 30% commission on App Store purchases and prohibiting developers from informing customers about alternative payment methods. Although the court ordered Apple to end its “anti-steering” policy, the company replaced it with a new program that still imposed a 27% fee on outside payments.
In April 2025, the court sided with Epic again, ruling that Apple must remove restrictions on alternative payment solutions and stop charging commissions on them. Apple has since appealed the decision, but Y Combinator has stepped in to support Epic and urged the court to reject Apple’s appeal.
In its filing, YC stated:
“The 30% ‘Apple Tax’ has long discouraged venture capitalists from backing app-based businesses. For many startups, that fee meant the difference between scaling, hiring, and reinvesting—or simply struggling to survive.”
According to YC, the current ruling finally gives investors the chance, for the first time in nearly two decades, to fund innovative app-based businesses without the heavy burden of Apple’s fees. YC further argued that the “Apple Tax” was a profound and often insurmountable barrier that suppressed both competition and innovation at their source.
The next court hearing is scheduled for October 21, 2025.
