District Judge Yvonne Gonzalez Rogers could trigger the most consequential changes yet to the multibillion-dollar mobile economy. Congress has introduced legislation to rein in the tech giants' strict App Store policies. South Korea recently banned Apple and Google from forcing developers to use its payment system. But developers' complaints about feeling mistreated and getting a raw deal on the App Store have grown louder in recent years. So then, why is this a big blow to Apple?Īpple's App Store, and the commission that critics call the "Apple tax" are just one aspect of the tech giant's empire. "You have to show that some sort of conduct is preventing competition."Ī separate case Epic filed against Google is scheduled to go to trial this year. "Antitrust law doesn't let you complain that the prices are too high," Stanford's Lemley said. She noted that while Epic chose to target Apple (and Google) over the fee, it seemed odd considering that Nintendo's Switch, Microsoft's Xbox and Sony's PlayStation all charge a similar cut on game sales. Yvonne-Gonzalez was skeptical of the 30% fee during the trial, and in the ruling she was suspicious about Apple's justification of the commission, writing that "the 30% is not tied to anything in particular and can be changed," but did not order Apple to do so. No, but Apple can choose to drop the rate, and for certain developers, it has.Įpic Games considered Apple's take of most purchases "exorbitant" and an abuse of its market power. The appeals process will likely cause delays, so don't expect changes any time soon. Whatever it looks like, Apple solely controlling what critics call a "toll booth" in the App Store will be no longer. Or, there could be a link inside the app directing customers to complete a payment on a browser. You might see a new button in some of your favorite apps that lets you buy things through the developer's own payment system, for example. Will there be any visible changes to apps downloaded from the App Store? If developers are no longer forced to use Apple's payment system - and can avoid the 30% commission - they could lower their prices. When Epic violated Apple's rules and allowed people to buy credits for Fortnite through its own system, it offered a 30% discount, since there was no Apple levy involved. So will this make apps and in-app items cheaper? That's prohibited under California competition laws. Gonzalez Rogers ruled that Apple was hiding information from consumers and limiting choice. It means that when you pay for, say, a Spotify subscription on your iPhone, or a cool new outfit for your avatar in the mobile version of Roblox, you could get the option to pay through Spotify or Roblox's own systems.Īpple long has banned app developers from offering these alternative payment methods. But what does this mean for people who buy apps for their iPhones and iPads? "It will improve competition on the edges, but it's not the fundamental change that Epic and advocates of the antitrust case would have hoped for." "It's a split decision," said Mark Lemley, a Stanford Law School professor who studies antitrust issues and technology. She also said Apple does not have an illegal monopoly over how developers can process payments for mobile games, which Apple applauded. For Apple, Gonzalez Rogers upheld the App Store's overall structure as legal, a major victory for the tech giant.
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