Wesley Hilliard
Even though Apple has already allowed apps to start linking out to external purchase options, the company has asked the U.S. District Court in Northern California to stay enforcement during the appeal.
Apple has found itself in hot water after a judge ruled that the company was willfully violating an injunction over anti-steering rules. Apple followed the judge's demands and filed an appeal, but now it is asking for one more thing.
According to a report from 9to5Mac, which discovered the filing, Apple is asking the U.S. District Court for a stay on enforcement of the new requirements set by the judge. Apple was told it must immediately allow apps to link out to websites and enable external purchase options, which it has, but Apple hopes to stop having to do this while it appeals.
The situation is the result of Apple trying to find ways to monetize external purchases while still removing anti-steering rules. It is the only ruling Apple actually lost in the Epic vs Apple debacle, which has cost Epic Games at least a billion.
If a stay is granted, it might mean Apple will reverse approved app updates for Spotify, Kindle, and others. It will also likely mean that Epic CEO Tim Sweeney's planned return of Fortnite to iPhone will be halted.
There's no doubt that Apple will want to seek ways to monetize purchases made outside of the App Store while still following the rule of law. However, the courts don't seem to agree that Apple is owed anything if purchases are made externally for apps that were distributed on iPhone.
Apple's monetization of the App Store relies heavily on developers using its payment systems, which means Apple can take a 30% or 15% cut of every purchase or subscription. If every app and game can simply link out to a website, Apple could find itself in a situation where it can't make money on any app on the App Store beyond the annual developer fee.
While there are arguments to be made about how much Apple is owed, it surely isn't nothing. That is likely what Apple hopes to define with its appeals.
-m.jpg)
-m.jpg)
Amber Neely
William Gallagher
Marko Zivkovic
Sponsored Content
Andrew O'Hara
William Gallagher and Mike Wuerthele
Malcolm Owen
14 Comments
Video game console manufacturers charge 30% commission for games sold in their 1st party digital stores, don't allow 3rd party digital stores and also collect 30% commission on physical units sold in 3rd party retail stores. So there is a precedent for collecting commission on sales made outside the 1st party digital store. Epic has tried to claim that it's okay for consoles to do that specifically because they don't make as much profit on hardware but that is not a legal argument. There aren't any laws that control commission levels that companies can charge based on profit levels elsewhere in their business.
Don’t be evil, Apple.
As for us users, take the effort to buy your subscriptions outside the app where possible and you’ll likely pay less. A small bit of effort but it goes a long way when you add up the savings over time.
I find Apple’s arguments compelling in the legal sense.