Apple Must Now Allow Alternative Direct Payment Options In App Store, Judge Rules

By

Today, a noteworthy and highly publicized lawsuit between tech supergiant Apple and video game developer Epic Games reached a somewhat controversial conclusion.

To those unfamiliar with the situation: In August of 2020, Epic Games sued Apple for being removed from Apple’s digital marketplace, due to the fact that Epic created direct payment options that circumvented Apple’s 30% commission fees.Epic’s lawsuit also brought up broader claims that Apple was essentially a monopoly, and is a dominating force over less resourceful developers that are forced to comply with Apple’s policies.

After months of intense litigation and speculation from industry experts, Judge Yvonne Gonzalez Rogers ruled that Epic’s lawyers failed to convince the court that Apple was indeed “an illegal monopolist”. However, Judge Rogers did conclude in her decision that “...Apple is engaging in anti-competitive conduct under California's competition laws,”.

Although Epic Games failed to prove that Apple is a monopoly, the company didn’t walk away completely unscathled. As part of the court’s ruling, Apple must now allow developers to provide alternative payment options outside of the Apple marketplace, to create a more competitive environment for everyone involved.. The court also ruled that  Epic Games pay 3% of the $12 million in direct payments that Epic received while ignoring Apple’s policies.

Epic CEO Tim Sweeney commented on his frustration with the ruling on Twitter, tweeting: “Today’s ruling isn't a win for developers or for consumers. Epic is fighting for fair competition among in-app payment methods and app stores for a billion consumers.”.

Legally speaking, the result of this case would appear to be a win for Apple. However, the mandatory marketplace changes that Apple must adhere to have some experts speculating that the future of app development could be completely altered moving forward. Now that developers can provide alternative payment options, they can avoid the massive commission fees that were once required to claim a stake in the multibillion dollar app market.




Edited by Erik Linask

Editor, TechZone360

SHARE THIS ARTICLE
Related Articles

How Your Company Can Maintain Its Cybersecurity in 2021 and Beyond

By: Special Guest    9/17/2021

Cybercrimes are continually on the rise, bringing more threats to organizations in the pandemic than before. Statistics show that as early as March…

Read More

Is Mining Cryptocurrency Still Viable?

By: Special Guest    9/17/2021

As cryptocurrency continues to grow, more and more people are getting in on the action. But is it worth mining? Click here to find out more.

Read More

The World Will Change With Bitcoin

By: Special Guest    9/15/2021

Financial freedom may increase more efficiently with digital currency than ever before. The consequences of this are profound. Millions of people …

Read More

From Driver's Licenses Proof of Vaccination to Fishing Licenses, the World is Going All-Digital

By: Erik Linask    9/13/2021

The State of Louisiana's LA Wallet app will soon allow users to upload not only digital driver's licenses and COVID-19 vaccination status, but also hu…

Read More

Apple Must Now Allow Alternative Direct Payment Options In App Store, Judge Rules

By: Luke Bellos    9/10/2021

A California judge ruled that Apple has not been proven to be a monopoly, but is participant in anti-competitive practices within the company's digita…

Read More