Y Combinator (YC), one of the world’s most influential startup accelerators, has thrown its weight behind Epic Games in the ongoing legal clash with Apple, filing an amicus brief that claims Apple’s App Store policies have stifled innovation and held back early-stage businesses. The filing marks a notable intervention from the venture community, which has long voiced concerns about the impact of Apple’s App Store fees and restrictions on startup viability.
The brief enters a years-long antitrust dispute that began in 2020, when Epic Games sued Apple over two core issues: the tech giant’s mandatory 30% commission on App Store purchases (including in-app transactions) and its ban on developers directing users to alternative payment methods (a practice known as “anti-steering”). Since then, the case has seen multiple twists: a U.S. district judge initially ordered Apple to end its anti-steering rules, but Apple responded by launching a “link program” that allowed alternative payment links—while still charging a 27% fee. Epic later argued this workaround violated the court’s injunction, and in April 2025, the judge ruled in Epic’s favor, ordering Apple to stop restricting alternative payments and cease collecting fees on transactions made through those channels. Apple is now appealing that decision, prompting YC’s involvement.
In its filing, YC pulls no punches, framing Apple’s App Store fees (often called the “Apple Tax”) as a existential barrier for startups. “For nearly two decades, Y Combinator and the broader venture capital community have hesitated to back app-focused businesses because the Apple Tax made them poor investments,” the brief states. “A 30% cut of revenue can mean the difference between a startup that scales, hires teams, and reinvests in its product—and one that struggles perpetually to stay afloat.” YC emphasizes that the April court ruling—by allowing developers to openly offer alternative payment options—has for the first time made many app-based startups viable investment targets.
The accelerator also argues that Apple’s policies harm competition at its root. By forcing developers to either absorb the 30% fee (eating into already thin margins) or pass it on to users (making their apps more expensive than competitors), Apple creates a “profound and often insurmountable barrier to entry,” YC writes. This, the brief contends, discourages entrepreneurs from pursuing innovative app ideas—especially in sectors like e-commerce, subscription services, and digital content, where margins are tight. YC is urging the court to reject Apple’s appeal and uphold the April ruling, calling it a critical step toward leveling the playing field for startups.
As of press time, representatives for Y Combinator and Apple had not responded to requests for comment. The next hearing in Apple’s appeal is scheduled for October 21, and the outcome could have far-reaching implications for the App Store ecosystem: if the lower court’s ruling stands, it could pave the way for widespread adoption of alternative payment methods, reducing Apple’s control over app developers’ revenue streams and potentially lowering costs for consumers.
Correction: An earlier version of this article incorrectly claimed Y Combinator is an investor in Epic Games, based on a misstatement from another publication. TechCrunch regrets the error and has corrected the record.