Apple Seeks Stay on Order Blocking Its Commission on Off-App Payments
In a recent development, Apple has requested a US appeals court to temporarily stay an order that was passed last week in a lawsuit involving Fortnite maker Epic Games. The ruling, which was handed down by a federal judge, blocks Apple from charging app developers a 27% fee on transactions done outside of the App Store. Additionally, the order prohibits Apple from restricting where developers place links for users to make off-app purchases.
The lawsuit, which was filed by Epic Games in 2020, accused Apple of engaging in anticompetitive practices by requiring app developers to use its own in-app purchase mechanism and by taking a significant commission on every transaction made through the App Store. Epic Games argued that this was stifling innovation and limiting consumer choice.
The federal judge who presided over the case, Yvonne Gonzalez Rogers, ruled in favor of Epic Games, finding that Apple did have the power to restrict how developers could link to other payment systems. However, she also noted that Apple was not an “illegal monopolist” and that the company’s fees were not “per se illegal”.
Apple has now appealed the decision and is seeking a stay on the order while the appeal is pending. In a filing with the US Court of Appeals for the Ninth Circuit, Apple argued that the order would cause irreparable harm to the company and would undermine the security and integrity of the App Store.
Apple’s filing also claimed that the order would have significant consequences for app developers, including a loss of revenue and a lack of security. The company argued that the order would allow developers to bypass the App Store’s security measures, which would expose users to potential fraud and other risks.
On the other hand, Epic Games has argued that the order is necessary to protect competition and innovation in the app development industry. The company claims that Apple’s fees are excessive and that the company’s restrictions on linking to other payment systems are anticompetitive.
The dispute between Apple and Epic Games has been ongoing for several years and has drawn attention from regulators and lawmakers around the world. In 2020, the European Commission launched an investigation into Apple’s app store policies, and in 2021, the Japanese antitrust regulator issued a report criticizing Apple’s fees and restrictions on app developers.
The ongoing legal battle between Apple and Epic Games is just one of several high-profile disputes between tech companies and regulators over issues such as competition, antitrust, and consumer protection. As the tech industry continues to evolve and grow, these disputes are likely to become more frequent and more complex.
Conclusion
The dispute between Apple and Epic Games is a significant one, with implications for the entire app development industry. Apple’s request for a stay on the order blocking its commission on off-app payments is likely to be closely watched by regulators and lawmakers around the world.
As the legal battle continues, it is clear that the stakes are high for both Apple and Epic Games. Apple is fighting to protect its App Store and its revenue streams, while Epic Games is fighting to protect its business and its ability to innovate.
Ultimately, the outcome of this dispute will depend on a variety of factors, including the legal precedents that are established and the public’s perception of the issues at stake. One thing is certain, however: the dispute between Apple and Epic Games is just one of many high-profile battles between tech companies and regulators that are shaping the future of the tech industry.
Source
