Apple Cannot Ban External Links For App Store Payments: US Court


Radhika Kajarekar

Radhika Kajarekar

Apr 27, 2023


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 Cannot Ban External Links For App Store Payments: US Court

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.


Radhika Kajarekar
Radhika Kajarekar
  • 555 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online