A US federal judge shot some Apple App Store rules on Friday forced the company to allow developers to send its users to other payment systems in a partial win for the “Fortnite” maker. epic games and other app makers. But the judge ordered Apple not to require app makers to use its in-app payment system, one of Epic’s top requests, and to charge Apple a commission of 15 percent to 30 percent for its in-app payment system. continue allowing. Epic said it would appeal the ruling, with CEO Tim Sweeney tweeting that the ruling is “not a win for developers or consumers.”
The result left Apple’s critics and rivals saying they are more likely to turn to legislators rather than the courts to push for the changes they want. US District Judge Yvonne Gonzalez Rogers described her decision as requiring a “measured” change to Apple’s rules. Analysts said the impact could largely depend on how the iPhone maker implements the decision. Shares of Apple were down 3.2 percent on Friday afternoon, but several Wall Street analysts maintained their long-term favorable outlook on the iPhone maker.
“We suspect the end impact from this will be manageable,” Evercore ISI analyst Amit Daryani wrote in a note to investors. The ruling expanded last week a concession granted to streaming video companies to direct users to external payment methods. The decision extends that exemption to all developers, including game developers, the biggest cash generator for Apple’s App Store, which itself is the foundation of its $53.8 billion services segment.
The judge ruled that Apple could no longer prevent developers from providing buttons or links in its apps that direct customers to other ways to pay outside of Apple’s own in-app purchase system. The ruling also said that Apple cannot prohibit developers from communicating with customers through contact information received by developers when they sign up within the app.
The decision comes after a three-week trial in May before Gonzalez Rogers of the US District Court for the Northern District of California. Gonzalez Rogers blocks Epic from granting some of its other wishes, such as forcing Apple to open iPhone to third-party app stores.
Apple said in a statement: “Success is not illegal as the court held. Apple faces stiff competition in every segment in which we do business, and we believe customers and developers choose us because our The products and services are the best in the world.
In a media briefing, Apple’s legal team said it does not believe the ruling allows it to allow developers to implement their own in-app purchase system. Apple executives said the company is still debating how it will implement the ruling’s requirements and whether it will appeal.
The 3D printed Lady Justice figure is seen in front of the displayed Apple and Epic Games logos in this image taken on February 17, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
The 3D printed Lady Justice figure is seen in front of the displayed Apple and Epic Games logos in this image taken on February 17, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
The judge sided with Apple on important questions such as defining the relevant antitrust market as a gaming transaction, rejecting Epic’s argument that the iPhone is its own app market that Apple has a monopoly on.
Epic CEO Sweeney said on Twitter, “Epic is fighting for a billion consumers to have fair competition between in-app payment methods and the App Store. We will fight.”
The Epic lawsuit began when the game maker put its in-app payment system in “Fortnite.”
potential for more challenges
The challenges to Apple’s App Store regulations aren’t over. Friday’s ruling suggests they are more likely to play in state homes and capitals than on the courts.
Lawmakers in the United States and Europe are considering bills that would force Apple to allow third-party in-app payment systems, and South Korea’s parliament has already passed such a law.
“Today’s ruling also makes clear that archaic antitrust laws cannot be decided solely by the courts,” Match Group (MTCH.O) said in a statement. The monopolistic practices of Apple and Google will end only when we bring our laws into the digital age, as South Korea did last week.” US Congressional lawmakers said the decision showed that courts alone would not address their concerns. Will do
While Gonzalez Rogers did not find that Apple is a monopolist, he did find that the test showed that Apple was in violation of California state competition and showed some “preliminary antitrust violations” that required a nationwide remedy. John Newman, a professor of law at the University of Miami, said the ruling leaves open avenues for US regulators to challenge Apple in court. Reuters has previously reported that the US Justice Department is investigating the iPhone maker.
The orders follow Apple’s agreement with the Japan Fair Trade Commission last week, under which it eases rules for “reader” apps like Netflix To provide customers with a link to sign up for a paid account outside the app. Read more Games are a big part of Apple’s sales.
But whether the ruling eats into that revenue depends on how Apple implements the changes.
“To some extent, Apple can make it so that its in-app payments are still the easiest to use,” said Ben Bajarin, Head of Consumer Technologies at Creative Strategies.
shares of Alphabet, whose Google unit operates an app store for Android smartphones and which Epic is also suing over antitrust charges, was down 1.7% late on Friday.
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