Apple Inc will need to change its payment practices in the App Store, as directed by a US appeals court, which seconded the decision of a federal court.
However, Apple plans to appeal this decision.
Read on to find out all the details!
Apple Will Need to Change its App Store Payment Practices
A federal judge’s ruling that could compel Apple Inc. to alter its App Store payment policies was upheld by a U.S. appeals court on Monday.
In an antitrust dispute brought by the “Fortnite” creator Epic Games, the U.S. 9th Circuit Court of Appeal upheld a 2021 decision that might compel Apple to permit developers to give links and buttons for third-party in-app payment choices and avoid paying sales commissions to the iPhone manufacturer.
The appeals court agreed with the trial court that Apple’s App Store policies do not violate antitrust laws and upheld its commissions of up to 30% for in-app purchases. The appeals court also ruled with Apple on nine other issues in the case.
As per a statement issued by Apple, “For the second time in two years, a federal court has ruled that Apple abides by antitrust laws at the state and federal levels. We respectfully disagree with the court’s ruling on the one remaining claim under state law and are considering further review.”
Apple Can Appeal the Decision Within 14 Days
The company has 14 days to file its appeal and the trial court’s orders will be paused during the appeals.
The trial court judge ruled that links and buttons to third-party payment choices could no longer be blocked by Apple. But unlike competition regulators in numerous nations, the trial court judge did not provide guidance on how Apple must permit those links or buttons, opening the door to potential future legal disputes over the required changes.
The appeals court determined that the trial court’s order requiring Apple to alter its conduct was proper since it would be impossible to quantify the harm that Apple’s policy caused to Epic.
The 9th Circuit noted on Monday that the district court’s conclusion that Epic sustained a harm for which monetary remedies would be insufficient was not obviously incorrect.
Competition regulators in several nations, including South Korea, the Netherlands, and Japan, have compelled Apple to open up its in-app payment mechanisms.
