Apple Forced To Change Payment Policies After Court Rules Tech Giant Interfering With Competition

by shayaan
Apple Forced To Change Payment Policies After Court Rules Tech Giant Interfering With Competition

Tech giant Apple has softened its rules on app-related payments following a court ruling that declared the company was engaging in anti-competitive practices.

In a ruling from the Northern District of California, Judge Yvonne Gonzalez Rogers says that Apple willfully violated an injunction from its legal battle with video game developer Epic Games – the company behind Fortnite.

In 2020, Apple banned Epic’s account from the App Store when the video game developer allowed users to go outside the Apple ecosystem to get better payment deals. Epic subsequently sued Apple, accusing the tech giant of anti-competitive behavior.

Judge Rogers ruled in 2021 that Apple violated state law and ordered the tech giant to allow developers to direct users to other payment channels.

Years later, however, the judge says that the company didn’t comply, and that “Apple’s continued attempts to interfere with competition will not be tolerated.”

“This is an injunction, not a negotiation. There are no do-overs once a party willfully disregards a court order. Time is of the essence. The Court will not tolerate further delays. As previously ordered, Apple will not impede competition.

The Court enjoins Apple from implementing its new anticompetitive acts to avoid compliance with the Injunction. Effective immediately, Apple will no longer impede developers’ ability to communicate with users, nor will they levy or impose a new commission on off-app purchases.”

The court order opens the door for digital assets to become an alternative means of payment for App Store users.

Screenshots from Apple users on the social media platform X reportedly show an update clarifying that app developers are allowed to direct users to other payment methods, which may include crypto.

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Commenting on the update, economist Alex Krüger said it could be “huge.”

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