Apple Vs Epic: App Store Must Now Let Developers Use Alternative Payment Methods

The showdown between tech behemoth Apple and game developer Epic Games appears to be coming to a close in the United States.?In a benchmark ruling, Judge Yvonne Gonzalez Rogers issued a "permanent injunction" in the Epic v. Apple case - effectively approving new payment freedoms on the Apple ecosystem app marketplace known as "App Store".?

Reuters

What happens to Apple's apperceived monopoly?

It's quite straightforward. Apple can no longer force iOS users to keep paying only through its own systems and gateways.

All apps in the iOS ecosystem must now enable redirecting users to payment options that may not be offered by Apple - allowing developers to be paid directly.Game developers would also be allowed to communicate with customers directly by obtaining information during account registration or through other channels with consent of the user.?

Reuters

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While Apple may have lost this ruling on paper, it remains largely unhurt from the judge's assessments. The court did not find Apple to be a monopolist, The Verge cited the injunction as saying.?

But the court did find that Apple is "engaging in anti-competitive conduct under California's competition laws".?

A win for Apple?

In fact, Epic Games took a hit in a separate judgement, where the court found that the developer breached its contract with Apple by enforcing an alternative payment method for its Fornite game. The court ordered Epic to pay Apple 30 per cent of all revenue collected since the implementation of the new payment mechanism - which could run as high as $3.5 million.?

Reuters

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Apple dubbed the verdict as a victory for the App Store. "The App Store is not in violation of antitrust law", the company told The Verge soon after the injunction was ruled.?

Epic Games' CEO took to Twitter to express his disappointment, claiming that the ruling is a loss for developers as well as consumer. Another spokesperson told NPR that the company intends to appeal the ruling.Scheduled to take effect on December 9, 2021 - the injunction could be delayed if a higher court takes charge.? ?

Do you feel the ruling favours Apple or Epic? Do let us know in the comments.