Apple Seeks Delay on Ruling Preventing Commission on External App Payments

Apple Seeks Delay on Ruling Preventing Commission on External App Payments

Apple is currently engaged in a legal battle to protect its revenue model, as the company seeks to delay a significant court ruling that mandates iOS app developers in the U.S. to redirect users to external payment systems. This ruling could potentially allow developers to avoid paying commissions to Apple, impacting the company’s earnings.

Background on the Legal Dispute

In a recent ruling, a U.S. court favored Epic Games in a longstanding lawsuit against Apple. Judge Yvonne Gonzalez Rogers determined that Apple had failed to comply with a prior order issued in 2021. This decision has significant implications for the company’s App Store policies.

Key Points of the Ruling

  • Apple must allow apps on its U.S. App Store to include features that redirect users to external payment systems.
  • The company is prohibited from collecting commissions on these external transactions.
  • Apple can no longer display “scare screens” that warn users about the risks of using non-Apple payment systems.

Apple’s Response to the Ruling

In response to the recent court ruling, Apple filed an emergency motion late on Wednesday, seeking a partial stay. The company argues that the ruling is excessive and expands the scope of the earlier injunction without justification. Apple claims it has been compliant since 2021 by allowing developers to link to non-Apple payment systems, although it imposed a 27% cut on such transactions along with the previously mentioned scare screens.

Financial Implications for Apple

Apple contends that the new restrictions could lead to substantial financial losses. The company stated in its filing, “These restrictions, which will cost Apple substantial sums annually, are based on conduct that has never been adjudicated to be unlawful.” Apple argues that these measures are punitive rather than corrective.

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Reactions from Epic Games

Epic Games has criticized Apple’s emergency motion, labeling it as a desperate attempt to stifle competition and impose excessive fees on consumers and developers. The gaming company stands firm in its position against Apple’s practices.

Ongoing Compliance and Industry Impact

Despite the legal struggle, Apple has begun to comply with the court’s order, allowing developers like Spotify and Amazon to update their apps to facilitate external payment redirection. This shift could lead to significant changes in how transactions are processed in the App Store ecosystem.

For more details on the ongoing legal implications and its potential effects on the tech industry, visit [TechCrunch](https://techcrunch.com).

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