A US Federal Court has dealt a major blow to the world’s famous company Apple, the iPhone maker. A Federal Court judge has ordered Apple to relax its App Store rules. After this order of the judge, the app developers of the company will be allowed to send their users to other payment systems. The judge gave this decision in the court on the case of Epic Games, the maker of the famous game ‘Fortnite’. The judge’s decision is being seen as a major victory for Epic Games and other apps on the Apple Store.
Judge Vone Gonzalez Rogers of the US District Court in the Northern District of California gave this ruling. However, in its decision yesterday, the Federal Court has given some relief to the Apple company, allowing it to continue charging a commission amount of 15 to 30 percent as in-app payments. This is the easiest way for customers to pay on the App Store. After this decision, Apple issued a statement saying, “The court’s decision also shows that success is not illegal. Apple has to face tough competition in every segment. Customers and developers choose us because our The products are the best in the world.”
Apple gave this statement on the decision
In a media briefing, Apple’s legal team said, “We do not think that after the court’s decision, developers will be able to implement their own in-app purchase system. Officials said that, the company is considering whether to How will this court’s decision be implemented?
However, the litigating company Epic Games is not entirely happy with the decision. As the judge himself said, this decision is a rational change in Apple’s rules. However, analysts believe that the impact of this decision will depend on how Apple implements it. Epic Games is planning to appeal against this decision once again. Epic’s lawsuit started when this game maker company had put its own in-app purchase system in its game Fortnite. Around 400 million people play this video game around the world.
Apple’s shares fell after the court’s decision
However, after this decision of the court, the company’s highest-grossing activity is under threat. 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. After this decision of the 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.
Let us tell you that Apple charges a commission of up to 30 percent on the transactions done through the app kept in its store. Such transactions include digital transactions including songs, music, movies including Netflix or Spotify subscriptions etc.