Apple’s App Store rules prevail in Supreme Court showdown after 3 years of legal skirmish
On the most recent updates on the trial that puts Epic Games against Apple, the U.S. Supreme Court has temporarily upheld Apple’s App Store policies, giving the tech giant a momentary reprieve amidst its ongoing legal tussle with Fortnite publisher, Epic Games.
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Epic Game battle for better App Store payment conditions gets stalled
The Supreme Court’s decision comes as a setback for Epic Games, which has been embroiled in a three-year legal battle against Apple over what it perceives as unfair competition practices. The Ninth Circuit Court of Appeals had previously ruled in favor of Epic, stating that Apple’s policies violated California’s Unfair Competition Law.
This law pertains to Apple’s restriction on iOS apps, preventing them from offering users alternate payment methods outside of Apple’s in-app purchasing system, from which Apple takes a 30% cut. Nevertheless, regardless of how this trial ends up, Apple’s decision to block NFTs from having a direct impact on App Store apps will remain unchanged since it’s not a matter of this case.
However, Justice Elena Kagan has now put a temporary halt to this ruling, allowing Apple to continue enforcing its current App Store rules. The specifics behind Justice Kagan’s decision remain undisclosed.
The stakes at play
Apple’s stringent App Store policies, particularly concerning in-app payments, have been a goldmine for the company, raking in billions of dollars from its share of sales – Apple takes a 30% cut of all funds generated from iOS Apps, which Epic Games sees has an unfair competition advantage.
Changes to these company policies would have a significant impact on the company’s revenue. If developers were allowed to direct users to their own marketplaces, such as Epic’s Game Store, or NFT platforms like OpenSea, it could significantly boost developer revenues while simultaneously denting Apple’s income.
Furthermore, Apple’s stance on NFTs has been notably restrictive. The company has barred the use of NFTs purchased on external platforms from unlocking exclusive in-app content. Even though the court ruling doesn’t directly impact the App store NFT acceptance, it could unlock doors for developers to integrate NFT Marketplaces into their apps, which is something that is currently blocked. As it stands, Apple’s rules remain unyielding, and apps cannot redirect users to external NFT marketplaces.
What lies ahead?
The ball is now in Apple’s court. If the company chooses not to appeal to the Supreme Court, or if the appeal is rejected, the Ninth Circuit’s ruling will come into effect. This could revolutionize the way apps function on the iOS platform. While apps might be able to bypass Apple’s 30% fee by linking to external NFT marketplaces, they would still be prohibited from using NFTs to unlock in-app content.
In the interim, gamers and app enthusiasts might find solace in alternative platforms. Google’s Play Store and Epic Games’ expanding array of blockchain games could offer more flexibility and options for NFT gaming.
The implications of the Supreme Court’s decision
Beyond the direct parties involved, this legal face-off between the two tech behemoths will resonate widely within the tech sector and its user base. Epic is making it clear that it’s not just about them; these rules are hurting lots of users and developers too. This whole thing could really shake up how Apple runs its App Store.
The “Apple tax” – the fee Apple imposes on digital purchases – has been a point of contention. While Apple retains the right to charge a commission if developers adopt external payment methods en masse, the recent pushback from Dutch regulators suggests a growing demand for more open payment systems.
