Apple Doesn’t Have To Implement Third Party App Store Payment Just Yet: Appeals Court
According to a recent verdict by the San Francisco appeals court on Wednesday, Apple Inc. (AAPL) might not have to make the changes to the App Store, which means developers will not be able to add third-party payment options for the users to avoid Apple’s 30% commission.
“Apple has demonstrated, at minimum, that its appeal raises serious questions on the merits of the district court’s determination that Epic Games, Inc. failed to show Apple’s conduct violated any antitrust laws but did show that the same conduct violated California’s Unfair Competition Law,” the court ruled.
Earlier this month, Judge Yvonne Gonzalez Rogers denied Apple the time it appealed for to make changes to its store and reinstated the original deadline on December 9. But the recent ruling will help the company to keep on generating digital revenue by charging developers up to 30% of the payment users make through Apple Pay.
The whole fiasco originated from Apple charging almost $6 million to Epic Games through user payments to which the developers objected. In the end, Apple removed famous multiplayer game Fortnite from App Store.
The court ruled against Fortnite earlier this year and debunked Epic’s claims of Apple over-charging developers and creating a monopoly in the industry. However, California’s Unfair Competition Law caught up to the iPhone makers and asked the company to allow the developers to add external payment information for users.
An Apple spokesperson said, “We’re constantly evolving the App Store to help create an even better experience for our users and the incredibly talented community of iOS developers. Our concern is that these changes would have created new privacy and security risks, and disrupted the user experience customers love about the App Store. We want to thank the court for granting this stay while the appeals process continues.”
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