Apple has been hit hard in the ongoing lawsuit against Fortnite-maker Epic Games. A court in Oakland, California has ruled that Apple cannot stop app developers from instructing users on third-party payment options. Apple argued that each app should use Apple’s own in-app payment option.
In a high-profile trial, Epic Games challenged a 30% reduction in purchases from Apple. Argued that the App Store was exclusive. On Friday, Judge Evan Gonzalez-Rogers ruled that “the court cannot ultimately decide that Apple can be exclusive.”
However, he also issued a final ban, stating that Apple could not prohibit developers from associating with their own purchasing methods. In this case. A movie-streaming service will now ask customers to subscribe through its own website, without using Apple’s in-app purchase method.
Epic has also taken action against Google over its Play Store. Apple’s closed payments system is hugely lucrative for the tech giant. Although the corporate says it doesn’t know exactly what proportion it makes.
The ruling effectively states that Apple cannot prevent developers from communicating with customers. Often there are cheaper options for consumers far away from the App Store. Apple has not allowed companies to let consumers know about it.
Epic argued that it is unreasonable that developers should be prepared to let users know that they can shop far away from the App Store. However, during a win for Apple, Judge Epic did not rule that Apple was doing an illegal monopoly.
Judge Evon Gonzalez-Rogers said: “Apple has a market share of more than 55% and a very high profit margin.” But added: “These factors don’t just show distrustful behavior. Success is not invalid.”
It is true that the judge was originally in favor of Apple in the Epic’s main controversy, saying it was not exclusive. However, the feature that Apple has won here is confusing. Epic’s lawsuit against Apple was speculation. Many believed they had no chance.
The court has been moved to allow app purchases to be redirected to the app far from the App Store, which could be a serious blow to Apple’s business model. It was revealed that 70% of Apple’s App Store revenue comes from gaming apps – a surprising figure.
I say “maybe” because it’s unclear what percentage of people would like to buy far away from the App Store, or how much it could hurt Apple’s profits. During the trial, Apple CEO Tim Cook said he did not have much expertise in corporate production from the App Store. This decision attempts to assess the damage that the corporate could wear. Epic is saying it’s disappointed within the ruling, and positively the judge could have given them more. But the choice has been welcomed by anti-trust campaigners, who believe Apple use their market dominance to bully developers.
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