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Epic Games' “MegaGrant” makes EU alternative app store AltStore PAL available for free

TechBrunchBy TechBrunchAugust 15, 20243 Mins Read
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AltStore PAL, an app that takes advantage of the EU's Digital Markets Act (DMA) to offer a third-party app store to EU users, is now available for free thanks to Epic Games. The app maker announced in a social media post on Wednesday that it was the latest recipient of a “MegaGrant” monetary award from Fortnite maker Epic Games, which will help cover future Apple core technology fees as well as making AltStore PAL available to users for free, with no subscription required.

The alternative app store was created by Riley Testad, developer of the video game emulator Delta, and his longtime friend and business partner Shane Gill. The app was released after the EU's implementation of DMA and initially offered two apps: Delta and AltStore's own clipboard manager, Clip. The company says that unlike Apple's App Store, AltStore allows anyone to distribute their own apps through self-publishing.

AltStore had been experimenting with new business models for app distribution and monetization, similar to Patreon-backed apps, which collected a small annual subscription fee of 1.50 euros from users. Testut explained that the decision to charge a subscription fee was driven solely by the fact that, as a free app supported by donations, AltStore PAL was unable to pay Apple's Core Technology Fee itself.

As the company shared in a social media post, Epic Games has given AltStore PAL a MegaGrant that will be used to cover Apple's Core Technology Fee going forward, resulting in a lower subscription price.

First announced in 2019, MegaGrants stem from Epic Games' $100 million fund and are intended to support “game developers, enterprise professionals, media and entertainment creators, students, educators, and tool developers around the world” who are using Epic's Unreal Engine or improving open source capabilities for the 3D graphics community. In announcing the new fund, Epic said grant awards will range from $5,000 to $500,000.

Reached for comment, Epic Games declined to disclose the size of the grant awarded to AltStore PAL.

But the company has been a major thorn in Apple's side for years, ever since it sued the iPhone maker over antitrust concerns regarding the App Store. While Apple mostly won that case, a judge ruled that it should be allowed to direct users to its own website for transactions and payments. Apple has now ruled that developers can do this, but only at a slightly reduced commission rate of 27%. Epic Games has also heavily criticized Apple's implementation of its DMA compliance plan, which introduced new business rules and added new fees for developers in the region, including a core technology fee, which Epic now covers through AltStore PAL.

In addition to eliminating subscription fees, AltStore PAL has also informed users who have already paid that they will not be charged again upon renewal.



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