Apple App Store: A US Federal Court judge has ordered iPhone maker Apple to loosen its tight grip on its App Store. This has put the company’s highest-grossing activity at risk. If such a change happens in Apple’s App Store, it will save app creators billions of dollars and encourage them to reduce the price, which will benefit consumers.
Apple may lose billions of dollars
The judge’s decision came on Friday in the Epic Games anti-competitive case. Epic Games is known as the maker of Fortnite. Around 400 million people play this video game around the world. After this decision of the federal court, Apple’s shares were down more than two percent in trading on Friday afternoon. Investors feel that this decision could result in loss of billions of dollars in annual income of the company.
Apple charges 30 percent commission on transactions done through the app
Apple charges a commission of up to 30 percent on transactions made through the app placed in its store. Such transactions include digital transactions including songs, music, movies including Netflix or Spotify subscriptions etc.