(((NewsNation Now) — A federal judge has ruled that Apple needs to allow app developers to “guide” users from App Store payments as part of a proceeding from game maker Epic. The judge said Apple’s actions were anti-competitive, but not exclusive.
This decision can reduce the price of digital products.
The issue is due to Apple cutting 30% of sales from developers who earn more than $ 1 million a year from the App Store. Apple has also banned users from letting users know that they can pay developers outside the store.
For example, if a subscription costs $ 10 to a user to buy on the App Store, developers can’t sell the subscription cheaper elsewhere and can save money by buying it there instead of the App Store. I can’t tell the customer. If the developers sold it for $ 7 through their own website, they could keep the same amount of income without giving Apple a dime.
Epic, the creator of the super-popular game Fortnite, sued Apple in 2020 after Fortnite was removed from the App Store. The game broke Apple’s rules banning payment system workarounds. Epic knew what it was doing and had a marketing plan in place to respond to court complaints.
Epic argued that this practice was exclusive because there was no way around Apple’s 30% charge. There is no way to download the app to your iPhone unless it’s on the App Store.
Judge Yvonne Gonzalez Rogers of the U.S. District Court requires Apple to make some changes to the app store, but blocks other stores from offering apps for the iPhone. He also supported the rights.
“Because the court admitted that’success is not illegal,'” Apple said in a statement. “Apple faces fierce competition in every segment we do business with. We believe that our customers and developers choose us because our products and services are the best in the world. “
Gonzalez Rogers also hit Epic when Fortnite added a non-Apple payment system to the app, deciding that the game maker had violated its contract with Apple. The rebellion caused Apple to expel Fortnite from the app store 13 months ago, causing an Epic proceeding. She ordered Epic to pay Apple about $ 3.7 million, or 30% of the revenue it raised in violation of Apple’s fees.
Epic, a privately held company based in Cary, NC, did not immediately respond to requests for comment.But Epic CEO Tim Sweeney Blame the decision in a tweet“It’s not a win for developers or consumers,” he wrote.
Fortnite will return to Apple’s app store once it can offer competitive in-app payments, he said. “We will fight,” he added. In subsequent tweets..
Apple was able to appeal the ruling. Epic may also urge Apple to see if another judge could take a tougher position.
Leading tech companies have been silently circumventing Apple’s rules for years. For example, Netflix does not allow users to subscribe to streaming services on their iPhone apps. However, it doesn’t violate Apple’s rules because it doesn’t tell customers where to sign up for an account.
Over the last few weeks, Apple has taken two steps to relax some of the rules in the App Store. One is to settle the proceedings and the other is to appease Japanese regulators without changing fees. These concessions make it easier for many apps to encourage users to pay for digital transactions in a way that avoids triggering Apple’s fees.
Apple stocks plunged shortly after the ruling was issued, dropping 3% on Friday.
Apple has ordered relaxation of rules regarding the App Store
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