A US appeals court has upheld a federal court’s order that may require Apple to change its payment practices in the App Store. Apple has expressed its intention to potentially appeal the decision. The ruling stems from an antitrust case brought by Epic Games, the creator of Fortnite, which argues that Apple should allow developers to include links and buttons for third-party in-app payment options, thereby avoiding the payment of sales commissions to Apple.
While the appeals court supported Apple on nine other matters in the case, affirming that the App Store rules do not violate antitrust laws, it did acknowledge that Apple’s commissions of up to 30 percent for in-app payments should remain intact. Apple responded to the ruling by stating, “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 has not disclosed whether it plans to appeal to a larger group of judges on the 9th Circuit or to the US Supreme Court. The company has a 14-day window to file its appeal, and during this time, the trial court’s orders will remain on hold.
Epic Games, on the other hand, admitted defeat in its antitrust claims but emphasized that the trial court order allows iOS developers to direct consumers to their own websites for conducting business. The company is currently strategizing its next steps.
Although Epic failed to prove most of its allegations that Apple violated antitrust laws, the trial judge did find that Apple breached California’s unfair competition laws by preventing developers from informing users about alternative payment methods. The judge ruled that Apple can no longer ban links and buttons to third-party payment options. However, the judge did not provide specific instructions on how Apple should implement these changes, leaving room for potential legal battles in the future.
The appeals court justified the trial court’s order for Apple to modify its behavior, citing the difficulty of quantifying the damages caused by Apple’s restrictive policies on Epic. The court stated, “The district court did not clearly err in finding that Epic suffered an injury for which monetary damages would be inadequate.”
It’s worth noting that Apple has already been compelled by competition authorities in several countries, such as South Korea, the Netherlands, and Japan, to open up its in-app payment systems.
In other news, Xiaomi launched its camera-centric flagship smartphone, the Xiaomi 13 Ultra, while Apple inaugurated its first stores in India. These developments, along with other reports on smartphone-related rumors, are discussed on the Orbital podcast by Gadgets 360. The podcast is available on various platforms, including Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, and Amazon Music.
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Eugen Boglaru is an AI aficionado covering the fascinating and rapidly advancing field of Artificial Intelligence. From machine learning breakthroughs to ethical considerations, Eugen provides readers with a deep dive into the world of AI, demystifying complex concepts and exploring the transformative impact of intelligent technologies.
