apple fights app store ruling, epic games claims victory
apple is attempting to delay a court ruling that would force the company to allow ios app developers in the u.s. to redirect users to external payment systems, thus avoiding apple’s commissions.
apple’s emergency motion
late wednesday, apple filed an emergency motion asking an appeals court for a partial stay on a previous ruling. this move is seen as an attempt to protect a valuable revenue stream for the tech giant.
the epic games victory
a u.s.court recently ruled in favor of epic games in a long-standing case against apple.judge yvonne gonzalez rogers found that apple had not complied with a 2021 order.
did you know? the initial lawsuit was filed in 2020, after epic games removed fortnite from apple devices due to what epic games ceo tim sweeney called apple’s junk fees
[1].
the ruling mandates that apple allow apps on its u.s. app store to include features that:
- redirect users to external systems for purchases
- stop collecting commissions on those payments
- stop showing
scare screens
– pop-up messages warning users about making in-app purchases from non-apple systems
apple’s arguments and compliance
apple is specifically seeking a stay on the prohibitions against charging a cut of transactions that users make via external purchase links, and setting any conditions on the language or placement of links or other references to external purchase options.
the company argues that the new ruling dramatically
increases the scope of the earlier injunction, as the court did not initially bar apple from charging commissions on non-apple payment systems as apple had not started doing that at the time.
apple maintains it complied with the 2021 injunction by allowing developers to link out to non-apple payment systems, but it charged app developers a 27% cut on those transactions and displayed the aforementioned scare screens.
financial implications and apple’s concerns
apple claims the new order would result in significant financial losses. in its filing, the company stated:
these restrictions, which will cost apple ample sums annually, are based on conduct that has never been adjudicated to be (and is not) unlawful; rather, they were imposed to punish apple for purported non-compliance with an earlier state-law injunction that is itself invalid.
apple further argues that without a stay, these remarkable intrusions into apple’s business will cause grave irreparable harm.
epic games’ response
epic games responded to apple’s motion, stating it is a last-ditch effort to block competition and extract massive junk fees at the expense of consumers and developers.
[epic games via twitter]
current status and app updates
apple has appealed the court decision. the company is now allowing developers to link users to external payment systems. spotify and amazon have already updated their apps to redirect users to their websites for payments.
faq
- why is apple fighting this ruling?
- apple wants to protect its revenue stream from app store commissions.
- what does the court ruling require?
- apple must allow developers to redirect users to external payment systems.
- how has apple responded?
- apple filed an emergency motion and has appealed the court decision.
- has apple complied with the order?
- yes,apple is allowing developers to link to external payment options.
pro tip: for developers, this ruling means more control over payment options and perhaps higher revenue. for consumers, it could lead to lower prices and more choices.
