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A Judge Blocked Apple From Collecting These Commissions
A Judge Blocked Apple From Collecting These Commissions

Yahoo

time7 days ago

  • Business
  • Yahoo

A Judge Blocked Apple From Collecting These Commissions

Apple recently lost a major antitrust case to Epic Games that has forced the tech giant to substantially change its iOS, Apple's operating system used by millions of Americans. In April, Judge Yvonne Gonzalez Rogers of the U.S. District Court of the Northern District of California ruled that Apple may not charge developers any commission for sales made outside of the App Store. While this move will make developers more profitable and save consumers money in the short term, it could have lasting and devastating effects on Apple users; forcing Apple to give developers free access to its network discourages the company from investing in its App Store. Epic Games, the producer of the popular Fortnite video game, first sued Apple in August 2020, alleging that Apple had violated the federal Sherman Antitrust Act as well as California's Cartwright Act and Unfair Competition Law by monopolizing the iOS app distribution and in-app payment processing markets via anticompetitive conduct. This conduct includes, namely, Apple's exclusion of third-party app stores and apps from its iOS devices and requiring developers to distribute apps exclusively via the App Store and use Apple's in-app payment processing (from which Apple collects a 30 percent commission on every sale). Epic's suit was prompted when Apple removed Fortnite from the App Store after discovering that Epic added an external payment service. In September 2021, the court dismissed the nine counts Epic made under the Sherman Antitrust Act and the Cartwright Act but held that Apple's antisteering provisions—contractual stipulations designed to prevent developers from directing iOS users to external payment options—violated the Unfair Competition Law. Brian Albrecht, chief economist at the International Center for Law and Economics, tells Reason that Apple's in-app fees can be justified by platform investment incentives and security concerns, which shield Apple from liability under federal antitrust laws. Judge Rogers said herself in 2021 that exclusive distribution via the App Store and commissions on in-app purchases "have procompetitive effects that offset their anticompetitive effects" and, for this reason, dismissed Epic's Sherman and Cartwright claims. Rogers also found that "Apple does not have substantial market power equating to monopoly power." However, California's Unfair Competition Law "condemns any business practice that is 'unfair' to consumers or competitors, even if it doesn't rise to the level of monopolistic conduct," explains Albrecht. Rogers ruled that Apple's antisteering provisions were unfair on the basis that they produced "anticompetitive effects and excessive operating margins under any normative measure." Rogers reiterated in her recent ruling that the September 2021 injunction "permanently restrained and enjoined [Apple] from prohibiting developers" to include "their metadata buttons, external links, or other calls to action that direct customers to purchasing mechanisms" in their apps. The injunction also barred the tech giant from prohibiting developers from "communicating with customers through points of contact obtained voluntarily from customers through account registration within the app." The 9th Circuit Court of Appeals affirmed the lower court's ruling in April 2023, finding that Apple was not in violation of federal antitrust laws but that its antisteering provisions were illegal under the Unfair Competition Law. Apple appealed to the Supreme Court to overturn the 9th Circuit's nationwide injunction in September 2023. Epic also appealed to the Supreme Court to end the 90-day pause the 9th Circuit granted Apple to appeal its injunction. The Supreme Court declined to review the case in January 2024. Apple filed its notice of compliance with the 9th Circuit's injunction following the Supreme Court's refusal to hear the case. The company stated it would allow developers to communicate out-of-app purchases to users and collect a 27 percent commission on these purchases instead of the 30 percent on in-app purchases. Rogers said Apple imposed "various restrictions on the manner and mode of communicating with customers which were distinctly less user-friendly than those otherwise allowed." Epic alleged that Apple was "in blatant violation" of the injunction by charging developers only three percentage points less of a commission on sales made outside the App Store. Accordingly, Epic filed a motion to the district court in March 2024 to hold Apple in civil contempt and enforce the injunction. In April 2025, Rogers ruled in Epic's favor, saying that Apple "chose to defy this Court's order and manufacture post hoc justifications for maintaining an anticompetitive revenue stream" despite being "afforded ample opportunity to respond to the Injunction." Rogers reaffirmed the original injunction, permanently enjoining Apple from restricting the language of links for purchases outside an app, requiring "a neutral message apprising users that they are going to a third-party site," and prohibiting the company from "imposing any commission or any fee on purchases that consumers make outside an app." Joseph Coniglio, director of antitrust and innovation policy at the Information Technology and Innovation Foundation, tells Reason that preventing Apple from charging a commission on linked transactions not only chills Apple's ability to innovate by preventing it from monetizing its iOS investments but also puts users' privacy and security at risk by allowing developers to steer them to out-of-app payments. Albrecht explains that the ruling will increase competition payments, which will help consumers, but reduce Apple's investments in the App Store, which will harm them. "It's hard to see how completely ripping [the system] apart will be helpful to consumers," says Albrecht. The post A Judge Blocked Apple From Collecting These Commissions appeared first on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

These are the apps that can now avoid Apple's in-app payment system
These are the apps that can now avoid Apple's in-app payment system

Arab Times

time25-05-2025

  • Business
  • Arab Times

These are the apps that can now avoid Apple's in-app payment system

LONDON, May 25, (AP): Apple users are starting to get ways out of the iPhone maker's so-called "walled garden.' For years, the company blocked app developers from informing people about how to pay for a subscription or service that didn't involve going through its own iOS App Store. Some apps didn't like this. It's the reason you weren't able to pay for your Spotify subscription from the app. But all that changed last month, when U.S. District Judge Yvonne Gonzalez Rogers issued a scathing decision against Apple that promises to shake up the iPhone app payment ecosystem. She ordered Apple to tear down the barriers around its previously exclusive payment system for in-app digital transactions and allow developers to provide links to alternative options. She also ordered Apple to stop preventing app makers from communicating directly with users through their apps to let them know about deals and offers. She told Apple not to impose new commissions on purchases made outside the App Store. Some companies, including Spotify, moved quickly to capitalize on the judge's demand with app updates. Here's a look at how iPhone users - at least those in the United States - can make the most of the changes: Spotify Spotify customers previously had to go to its website to pay for a music streaming subscription. That's because Spotify long ago removed the in-app payment option in protest against Apple's practice of requiring that digital subscriptions be bought only through iOS apps while taking a commission of up to 30%. Following a U.S. app update, Spotify said users "can finally see how much something costs in our app, including pricing details on subscriptions and information about promotions that will save money.' If you're a Spotify listener, you can now scroll through various subscription plans on the app to see their prices. Free users who want to upgrade to a premium subscription can sign up by tapping a button directly in the app. Existing premium users can easily switch to a different subscription level, also by simply tapping a button. And in another update, the company said users can also view individual audiobook prices and buy them within the Spotify app. Premium subscribers will also be able to buy "top up' hours for audiobook listening if they've maxed out their 15 free listening hours each month. Epic Games Gamers can rejoice. Five years after Apple ousted Fortnite for trying to introduce a direct payment plan to bypass the App Store, the popular game is back on iOS. The comeback appeared in jeopardy after Apple initially refused to approve Fortnite's bid before Apple relented this week, clearing the app for U.S. users. It's also back in the European Union, where alternative app marketplaces have been mandated since last year. Fortnite maker Epic Games had previewed the updated app's new payment buttons to let players buy V-bucks currency to spend on character "cosmetics' like outfits, wraps for weapons or dance movements known as "emotes.' One button leads to Apple's in-app purchasing system while the other is for Epic's own payment system, which can earn players up to 20% extra V-bucks for their accounts. Kindle Amazon has updated its Kindle app to add a button so that users can more easily buy books directly from their iPhones. Previously, users could only look up books and download a sample on the app, but did not have an option to buy directly. They had to open up their web browser and log in to their Amazon accounts to make the purchase, or else buy it from a Kindle reader. Now, U.S.-based readers can tap the new 'Get Book' button in the Kindle iOS app, which the ecommerce giant says will take them directly to their mobile web browser to complete the purchase. "We regularly make improvements to our apps to help ensure we are providing customers the most convenient experience possible," Amazon said in a statement. Patreon If you support online creators by paying for their podcasts, videos, music or other content on Patreon, you've now got the option to bypass Apple when buying subscriptions. The subscription platform updated its iOS app so that fans in the U.S. purchasing memberships have the option to skip Apple's checkout option that includes a 30% fee and instead use Patreon's own checkout option. The update app lets fans pay directly from the Patreon app by tapping the Join button. You can use credit cards, PayPal, Venmo or even the Apple Pay mobile wallet. There's still the option to stick with Apple's in-app purchasing system - displayed less prominently underneath the Join button - which will include Apple's fees, according to screenshots posted on Patreon's website. Patreon said the update doesn't apply to fans in other countries. However, it does mean creators based outside of the U.S. whose fans are in the country will be able to access the new payment option. The platform said that based on Apple's feedback, eventually it will move its alternative checkout method to an external browser so it can continue to avoid adding the extra fees.

Epic Games and Apple settle long-running legal battle
Epic Games and Apple settle long-running legal battle

Entrepreneur

time24-05-2025

  • Business
  • Entrepreneur

Epic Games and Apple settle long-running legal battle

A years-long legal dispute between tech giant Apple and video game developer Epic Games has finally been resolved. The conflict began in 2020 when Apple removed the popular game Fortnite... This story originally appeared on Calendar A years-long legal dispute between tech giant Apple and video game developer Epic Games has finally been resolved. The conflict began in 2020 when Apple removed the popular game Fortnite from its App Store, centered around commission fees and payment processing requirements. The removal occurred after Epic Games implemented a direct payment option in Fortnite that bypassed Apple's payment system. This move allowed Epic to avoid the 30% commission Apple charges on all in-app purchases. This move directly violated Apple's App Store guidelines, prompting the game's immediate removal. The Legal Battle Following the removal, Epic Games filed a lawsuit against Apple, claiming the company maintained an illegal monopoly over app distribution on iOS devices. The case raised significant questions about app store policies, developer rights, and major tech platforms' power over software distribution. The lawsuit went to trial in May 2021, with U.S. District Judge Yvonne Gonzalez Rogers issuing a mixed ruling for both parties. While the judge determined Apple was not a monopolist, she ordered the company to allow developers to include links to alternative payment methods in their apps. Both companies appealed aspects of the ruling, extending the legal fight for several more years as the case worked its way through the appeals process. Terms of the Settlement According to sources familiar with the agreement, the settlement includes provisions allowing Epic Games to return Fortnite to the App Store. The terms also address the core issues that sparked the dispute: Epic Games will be permitted to include links to alternative payment methods Apple will maintain some level of commission on purchases Both parties have agreed to specific operational guidelines moving forward The settlement's financial details remain confidential, though analysts suggest both companies likely made significant compromises to end the costly legal battle. Industry Impact The resolution marks a significant moment for the mobile app ecosystem. Developers, regulators, and other platform operators have closely watched the dispute, which highlighted tensions between app creators and the platforms that distribute their products. 'This settlement could signal a shift in how major app stores operate,' said a mobile gaming analyst who has followed the case. While Apple has maintained much control, the door has opened slightly for developers to have more options in monetizing their applications. The case has already influenced regulatory approaches to app stores globally. Several countries have introduced or are considering legislation requiring major platforms to allow alternative payment systems or reduce commission rates. What's Next for Consumers The settlement means Fortnite players on iOS devices will soon regain access to the game after nearly four years of absence. Epic Games will announce details about Fortnite's return to the App Store in the coming weeks. The settlement may also lead to more payment options in other apps, potentially resulting in lower prices for some digital goods as developers gain the ability to avoid or reduce Apple's commission fees. Both Apple and Epic Games released brief statements confirming the resolution of their dispute. Each expressed satisfaction with the outcome while avoiding specific details about concessions made during negotiations. The agreement comes at a time when both companies face new challenges – Apple is dealing with increased regulatory scrutiny worldwide, and Epic is working to maintain Fortnite's position in an increasingly competitive gaming market. The post Epic Games and Apple settle long-running legal battle appeared first on Calendar.

One Tech Tip: These are the apps that can now avoid Apple's in-app payment system
One Tech Tip: These are the apps that can now avoid Apple's in-app payment system

The Star

time23-05-2025

  • Business
  • The Star

One Tech Tip: These are the apps that can now avoid Apple's in-app payment system

For years, the company blocked app developers from informing people about how to pay for a subscription or service that didn't involve going through its own iOS App Store. But all that changed last month. — AP LONDON: Apple users are starting to get ways out of the iPhone maker's so-called "walled garden'. For years, the company blocked app developers from informing people about how to pay for a subscription or service that didn't involve going through its own iOS App Store. Some apps didn't like this. It's the reason you weren't able to pay for your Spotify subscription from the app. But all that changed last month, when US District Judge Yvonne Gonzalez Rogers issued a scathing decision against Apple that promises to shake up the iPhone app payment ecosystem. She ordered Apple to tear down the barriers around its previously exclusive payment system for in-app digital transactions and allow developers to provide links to alternative options. She also ordered Apple to stop preventing app makers from communicating directly with users through their apps to let them know about deals and offers. She told Apple not to impose new commissions on purchases made outside the App Store. Some companies, including Spotify, moved quickly to capitalise on the judge's demand with app updates. Here's a look at how iPhone users – at least those in the United States – can make the most of the changes: Spotify Spotify customers previously had to go to its website to pay for a music streaming subscription. That's because Spotify long ago removed the in-app payment option in protest against Apple's practice of requiring that digital subscriptions be bought only through iOS apps while taking a commission of up to 30%. Following a US app update, Spotify said users "can finally see how much something costs in our app, including pricing details on subscriptions and information about promotions that will save money.' If you're a Spotify listener, you can now scroll through various subscription plans on the app to see their prices. Free users who want to upgrade to a premium subscription can sign up by tapping a button directly in the app. Existing premium users can easily switch to a different subscription level, also by simply tapping a button. And in another update, the company said users can also view individual audiobook prices and buy them within the Spotify app. Premium subscribers will also be able to buy "top up' hours for audiobook listening if they've maxed out their 15 free listening hours each month. Epic Games Gamers can rejoice. Five years after Apple ousted Fortnite for trying to introduce a direct payment plan to bypass the App Store, the popular game is back on iOS. The comeback appeared in jeopardy after Apple initially refused to approve Fortnite's bid before Apple relented this week, clearing the app for US users. It's also back in the European Union, where alternative app marketplaces have been mandated since last year. Fortnite maker Epic Games had previewed the updated app's new payment buttons to let players buy V-bucks currency to spend on character "cosmetics' like outfits, wraps for weapons or dance movements known as "emotes.' One button leads to Apple's in-app purchasing system while the other is for Epic's own payment system, which can earn players up to 20% extra V-bucks for their accounts. Kindle Amazon has updated its Kindle app to add a button so that users can more easily buy books directly from their iPhones. Previously, users could only look up books and download a sample on the app, but did not have an option to buy directly. They had to open up their web browser and log in to their Amazon accounts to make the purchase, or else buy it from a Kindle reader. Now, US-based readers can tap the new 'Get Book' button in the Kindle iOS app, which the ecommerce giant says will take them directly to their mobile web browser to complete the purchase. "We regularly make improvements to our apps to help ensure we are providing customers the most convenient experience possible," Amazon said in a statement. Patreon If you support online creators by paying for their podcasts, videos, music or other content on Patreon, you've now got the option to bypass Apple when buying subscriptions. The subscription platform updated its iOS app so that fans in the U.S. purchasing memberships have the option to skip Apple's checkout option that includes a 30% fee and instead use Patreon's own checkout option. The update app lets fans pay directly from the Patreon app by tapping the Join button. You can use credit cards, PayPal, Venmo or even the Apple Pay mobile wallet. There's still the option to stick with Apple's in-app purchasing system – displayed less prominently underneath the Join button – which will include Apple's fees, according to screenshots posted on Patreon's website. Patreon said the update doesn't apply to fans in other countries. However, it does mean creators based outside of the U.S. whose fans are in the country will be able to access the new payment option. The platform said that based on Apple's feedback, eventually it will move its alternative checkout method to an external browser so it can continue to avoid adding the extra fees. – AP

Judge Orders Fortnite Back On iOS After Apple Exec Rages That "It's Our F****ING STORE"
Judge Orders Fortnite Back On iOS After Apple Exec Rages That "It's Our F****ING STORE"

Yahoo

time23-05-2025

  • Entertainment
  • Yahoo

Judge Orders Fortnite Back On iOS After Apple Exec Rages That "It's Our F****ING STORE"

A five-year court battle between tech titans Apple and Epic Games may finally be coming to a close. After months of explosive back-and-forth that went as high as the Supreme Court, Apple has reinstated Epic Games' landmark game, Fortnite, back onto its App Store. Fortnite — a free-to-play game which makes money from gamers spending cash on flashy cosmetics — began prompting users to bypass Apple's iOS payment system and pay Epic directly back in August, 2020. The move helped Epic get around Apple's 30 percent fee, a flat tax it charged all developers for selling on the App Store. Apple didn't like that, as Fortnite had over 116 million downloads through the App Store at the time. Apple argued Epic's payment portal violated the App Store's terms of service, and took the massively popular game off its platform. In response, Epic filed suit against Apple on antitrust grounds, launching an admittedly corny "Free Fortnite" campaign, which nonetheless posed a serious question: does Apple have the right to restrict developers' access to the billions of devices that exclusively use the iOS App Store? It's a question that took years to answer, and more twists and turns than a viral Fortnite dance. Apple countersued Epic, seeking damages from Epic's terms of service violation. In September 2021, Judge Yvonne Gonzalez Rogers issued a split decision, ruling with Apple on nine of ten counts, but awarding Epic a crucial injunction ordering Apple to allow apps to link to external payment platforms. Notably, Gonzalez Rogers found that Apple wasn't a monopoly, but rather a duopoly alongside Google, which was engaged in a similar legal battle with Epic over the Google Play store. She likewise ordered Epic to pay Apple $3.6 million in damages. Unhappy with the decision, both companies appealed, eventually escalating the issue to the Supreme Court, which declined to hear either appeal. Forced to allow developers to bypass Apple Pay, the company begrudgingly complied, but with on caveat. Apple now required developers to fork over 27 percent of the revenue made this way within 7 days of each transaction — a tactic known as malicious compliance. That, of course, spawned another series of lawsuits in March 2024, as Epic vowed to continue the fight and prove that Apple was acting in bad faith. Though Apple put on a cooperative face as the next phase kicked off, it would later emerge that the company's execs withheld documents, delayed proceedings, misled the court, and lied under oath. On the final day of that trial, Epic introduced a series of messages between senior PR executives at Apple, showing the tech giant's frustration at having to follow the law. "How is this still going," wrote Apple corporate communications worker Hannah Smith during an earlier day of trial. "I have no idea. I am stunned," replied Marni Goldberg, Apple's director of public affairs, and former press secretary for Senator Joe Manchin. "It's our F****ING STORE," she roared in a message minutes later. "This is very much pissing me off." Now knowing exactly who she was dealing with, Judge Gonzalez Rogers issued her scathing ruling on April 30, 2025, finding Apple "in willful violation" of the court's earlier decisions. "In stark contrast to Apple's initial in-court testimony... documents reveal that Apple knew exactly what it was doing and at every turn chose the most anticompetitive option," Gonzalez Rogers wrote. "To hide the truth, Vice-President of Finance, Alex Roman, outright lied under oath," the judge found. Though Roman testified that Apple decided on the 27 percent fee in January 2024 — a split-second decision made after the Supreme Court declined to hear an appeal — other records prove the tech giant was plotting it as early as July 2023. The ruling found that the decision to ignore the injunction went as high as Apple CEO Tim Cook, who ignored advice to follow the court's decision, and instead went with his "finance team," which convinced him to go through with the 27 percent fee. As Gonzalez Rogers wrote: "Cook chose poorly." Somehow, that wasn't enough hot water. After the April 30 decision, Apple began quickly approving updates to apps linking to third-party payment platforms, according to antitrust journalist Matt Stoller. However, there was one exception: Epic's Fortnite, which Apple had "determined not to take action on the Fortnite app submission" until after all lingering legal appeals were done. Presumably at her wit's end, Gonzalez Rogers issued a brutal one-page order, demanding Apple either make amends with Epic, or else sacrifice an Apple executive to the full wrath of the law. "Obviously, Apple is fully capable of resolving this issue without further briefing or a hearing," the judge raged. "However, if the parties do not file a joint notice that this issue is resolved, and this Court's intervention is required, the Apple official who is personally responsible for ensuring compliance shall personally appear at the hearing." Within a day of that final order, Apple folded, and has officially allowed Fortnite back on the app store (it's now estimated that the five year legal battle cost Apple $1 billion in lost revenue and legal fees.) Though the appeals battle still rages with Google, this one's a major win for software developers, publishers, and phone gamers everywhere. More on Apple: Tim Cook Has a Strange Obsession

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