How Apple ordered to change App Store payments – Guide
Apple has announced that it will not be selling its iPhone 5S and 5C products in the United States. This decision comes as a surprise to many, as the two devices were seen as the future of the iPhone. Apple has always been known for its innovation and quality, so this decision is likely to cause a lot of upset and confusion.
Apple has been cleared of antitrust charges by the US Court of Appeals for the Federal Circuit. The company has always maintained that its App Store does not violate antitrust law, and this ruling reaffirms that position. Apple faces stiff competition in every segment it does business in, and customers and developers choose Apple products because they are the best in the world. ..
Tim Sweeney, the founder and CEO of Epic Games, tweeted that the company will “keep fighting” against anti-competitive behavior. ..
Today’s decision is not a win for developers or consumers. Epic is fighting for fair competition between in-app payment methods and app stores for a billion consumers. Fortnite will return to the iOS App Store when and where Epic can offer in-app payment in competition fair with Apple payment in the app, passing the savings on to consumers.
An epic spokesman confirmed the company plans to appeal the decision.
Since then, Fortnite has been available on the Google Play Store. But Apple has refused to let it be included in the App Store, saying that it’s not a game that meets the definition of an “app.”
In a software update for Fortnite, Epic encouraged iOS gamers to purchase the in-game digital currency, known as V-Bucks, directly from Epic, rather than Apple’s in-app purchase system. To sweeten the deal, Epic offered a discount to anyone who purchased V-Bucks directly.
Apple pulled Fortnite off the App Store and Epic immediately opened what appeared to be a largely premeditated lawsuit. This was an attempt by Apple to undermine an important revenue stream, which Epic views as a key part of its business.
Epic, a software company, sued Apple, claiming that the App Store constituted a monopoly because it was the only way to access hundreds of millions of iPhone users. Apple had been hurt competition by banning other stores of apps or payment methods on your devices. ..
Epic Games is suing Apple for restrictions on its game Fortnite. Sweeney said that Epic just wants to change Apple’s future behavior. ..
Apple and Tim Cook sought to undermine that argument by pointing out that the iPhone is one of several devices that Fortnite users can play and buy V-bucks on, including Android smartphones (Epic is fighting Google in a similar lawsuit) and video game consoles such as the PlayStation and Xbox, many of which also do not allow alternative payment methods and charge similar commissions.
There is no law in the United States that prohibits businesses from having a monopoly. What is illegal, however, is trying to maintain a monopoly at the expense of competition. This can be done by either preventing new companies from entering the market or by charging high prices for goods and services. ..
Apple justified its 30% commission by saying that it helps improve the security and privacy of iPhone users. This gives developers a large captive audience, which in turn helps improve the security and privacy of iPhone users.
Cook testified that he and his team made a choice to pursue a business model that would generate more revenue through advertising than through selling products.
Apple’s commissions on in-app payments, often called the “Apple Tax,” have been criticized by developers, lawmakers and regulators around the world for years. And while the Epic lawsuit is one of the highest profile legal challenges, it’s one of many just last year. Music streaming service Spotify and dating app Tinder’s parent company, Match Group, have been other notable antagonists, with the former facing Apple in the US and Europe for alleged anti-competitive behavior. In the first weeks up to verdict, Apple has made several adjustments to App Store policies in a possible attempt to avoid further criticism of its practices. At the final In August, the company announced a settlement in a class action that allows app developers to email their users about alternative payment methods.
The company said it would further relax restrictions on “reader” apps — a designation that applies to companies like Spotify and Netflix that distribute media — and allow those apps to connect to external sites for users to define. Up and manage accounts. This update, which will take effect, was in response to an investigation by the Japan Fair Trade Commission.
Apple’s new design changes received a skeptical reception from the main developers who hired the company.
This is a stark demonstration of the Match Group’s monopoly power: making capricious changes designed to spur good public relations for their benefit, as legislation, regulatory scrutiny and developer complaints are approaching them, without any regard for the well-being of developers or the public. We hope everyone sees this for what it really is – a scam.
Rogers, a software engineer at Apple, said in a letter to the company that he was “extremely disappointed” with the way the company’s system works and that he wanted it changed. He said that developers have been directing users to external payment mechanisms for years without any issue, but that Apple has been “slow to react.”
The practical result of the 180-page order will likely be that Apple’s app store developers will no longer be required to use Apple’s in-app payment system to collect funds from iOS users., said Josh Davis, a professor of law at the University of California at San Francisco. He added that Apple will have to be careful how it implements the order to avoid contempt of court after the injunction takes effect in 90 days.
“They have a right to criticize this order,” he said. ..
“It’s possible that a few big, well-known apps could benefit from no longer relying on Apple’s in-app payment system,” Lemley said. “But it’s also possible that a lot of smaller apps could still be at risk.”
“Fortnite is a great game, but I never leave the app to play it on my computer,” he said. “I’m just using it on my phone.” This opens up the possibility for those who can persuade you to go or to whom you are already going - like your friends - to say, ‘Hey, buy your Fortnite downloads or your emotes through the Epic Store.’" ..
Apple’s counterclaim against Epic was that the developer violated the contract by subverting Apple’s in-app payment system and ordering the developer to pay damages equal to 30% of the $12,167,719 in revenue it collected from the iOS app. The company also claimed that Epic owed it $8 million for damages caused by this violation.
Apple continues to face pressure from regulators around the world. The company is still under scrutiny from the US House and Senate, as well as regulators in the UK and Europe. ..
Apple has already responded to the South Korean law by introducing a new in-app payment system called Apple Pay, which is only available in South Korea. This new system is much more user-friendly than the current one, and it should make it easier for Koreans to get around Apple’s restrictions.
Apple was not found to have violated federal antitrust law, which could increase pressure on US lawmakers to bring forward bills that would reform antitrust laws for tech giants. Gonzalez Rogers, the head of the Federal Trade Commission (FTC), made this decision after conducting an investigation into Apple’s business practices. ..
UCSF’s Davis says that opinion might increase the momentum behind these bills, to the point where lawmakers could say, “Wait, we all know Apple has market power. These technical details of antitrust doctrine are kind of getting in the way. We need to reform the law.”
Friday’s decision is expected to be appealed, and the case could drag on for several months or even years.
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