A federal judge has ordered Apple to crack open control over the App Store

A federal judge has ordered Apple to crack open control over the App Store and allow people to use other payment methods than the company’s own processors, which currently collect a 30% commission on in-app purchases. The Fortnite maker claimed that Apple had tied access to its App Store, the only place where iPhone and iPad users can download apps, to its payment system, which charges a 30 percent commission on the sale of digital goods and services. The ruling could force Apple to overhaul its entire business model for apps on iPhones and iPads. [Sources: 1, 4]

The decision, which states that it does not exercise a monopoly on a major digital marketplace that undermines its opponents “efforts to claim it violates antitrust laws, upheld many of the principles of the Apple App Store business, including that Apple could ban third parties from the iPhone App Market and continue to charge a 30 percent commission on many transactions. Apple did not say whether it would appeal the injunction that would allow iPhone app developers to offer other payment options. If Apple breaks a legal contract with itself, it owes 30 percent of the $12 million that it raised when it introduced an alternative payment system for the iPhone version of Fortnite, Rogers ruled. [Sources: 1, 5, 6]

The ruling of US District Judge Yvonne Gonzalez Rogers obliged Apple to make changes to its App Store but upheld the companies’ right to prevent other stores from offering apps for their iPhones. Judge González Rogers issued the decision after a closely monitored process and issued an injunction that Apple developers would no longer be permitted to provide links to other communications that users would forward to Apple’s App Store for purchase. The judge also ordered Fortnite, the maker of Epic Games that sued Apple, to pay the company $36 million for violating App Store policies last year. [Sources: 0, 4, 6]

A judge has ruled that the popular Fortnite video game and its creator Epic Games violated California’s unfair competition laws by forcing them to use Apple’s payment system in the App Store, where Apple collects a 30% commission from in-app purchases. Judge Yvonne Gonzalez Rogers ruled in a victory for developers, but not for Epic, that a permanent nationwide injunction prevents Apple from not only Keeping iPhone users in the dark about alternative payment options, but also allowing developers to stick to their own purchasing mechanisms in their own apps. The judge issued an injunction stating that Apple could no longer compel developers to add external payment options to their apps in order to alert users to the possibility of paying subscriptions through a web browser app. [Sources: 7, 9]

On May 11, the seventh day of the Epic vs. Apple trial, Judge Yvonne Gonzalez-Rogers made the compromise that the companies had demanded. She asked Epic and economist David Evans if it would be enough to kill Apple’s anti-steering rule, which Apple uses to stop developers from telling you how good an external site is if you buy your subscription through the app itself. On May 24, on the final day of her trial, the judge indicated that she was seeking exactly the kind of compromise – one that would not please both sides, but one that included the anti-steering rule. [Sources: 7]

Apple shares fell on the Nasdaq after the court ruling was announced that the company does not have a monopoly on a major digital marketplace and undermines opponents’ efforts to argue it violates antitrust laws. The practical result of the arrangement is that Apple App Store developers will no longer be required to use the system to collect money from iOS users, said Josh Davis, a professor at the University of California, San Francisco Law School. The EPIC lawsuit could force Apple to crack its airtight iPhone software and open up opportunities for developers to circumvent their commissions. [Sources: 5, 9]

The injunction that Apple would no longer allow developers to provide links to other communications that direct users to its app store for purchase was the first part of the fight between the two companies over Apple’s App Store policies and whether they stifle competition. González Rogers’ decision forced Apple to go further by allowing developers to direct their apps to customers using alternative payment methods. Since the end of the process three months ago, Apple has taken two steps to loosen its app store rules : one in settlement of a dispute to appease Japanese regulators and another by changing its commission. [Sources: 0, 4, 6]

Apple extended an olive branch to developers such as Netflix and Spotify and allowed them to send messages to customers who will relay them to payment processors outside the app store. On Wednesday, September 1 the Apple App Store relaxed the rules – allowing app developers such as Spotify, Netflix and digital publishers to include external links for users who sign up for paid subscription accounts. [Sources: 4, 6]

Apple’s lucrative app store business suffered a major blow on Friday thanks to a decision by a federal judge in its legal battle with Epic Games. Sweeney, the maverick CEO of Epic Games, launched a full-scale campaign against Apple, provoking the company to offer Fortnite players a way to buy in-game items from the App Store. On January 6th, 2011, Apple launched its Mac App Store, a digital distribution platform similar to the iOS App Store. [Sources: 0, 3, 4]

The iPhone 12, the biggest upgrade, was of course the long-awaited 5G expansion. The iPhone 12 was coupled with significant delays due to supply chain bottlenecks related to COVID-19, which resulted in massive sales for the quarter and a broader blockade of the entire mobile market. Supply chain problems persisted throughout the quarter but Apple appeared to be back on track with its release cycle after the pandemic. [Sources: 8]

While other manufacturers skipped a number of superstitious concerns, the company appeared to be on board with the iPhone 12s, leaking its successor, the iPhone 14. The Apple Watch 7 seemed to be the other big news event. It should have a massively larger display, which led to larger case sizes of 40mm, 44mm, 41mm and 45mm

You might also like

Leave a Reply

Your email address will not be published. Required fields are marked *