Judge opens Apple’s App Store for competition

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The US judge who presided over Epic Games’ high-profile antitrust case against Apple refused to allow either party to achieve a full victory.

According to Kate Adams, Apple’s Chief Legal Counsel judgment “A huge victory” points to the court’s ruling, that is, “According to the’Federal or State Antitrust Law’, Apple is not a monopolist.”

However, the iPhone manufacturer was forced to let developers in the United States bypass the App Store’s in-app payment tools by adding links or instructions to the “purchase mechanism” outside the platform.

Apple has not yet decided whether to appeal. But if the judgment is maintained, it will mean that App Store transactions of more than $60 billion a year will soon enter the competition-due to 15% to 30% of the fees, critics say, this may cost the iPhone manufacturer a loss of data. One billion dollars of high-profit income “Apple Tax”.

still, epic, Which makes popular Fort night Game, dissatisfied and confirmed that the decision will be appealed. What it really wants is a frictionless in-app payment mechanism that deprives Apple of revenue, rather than the ability to hyperlink to out-of-app payment sites.

Epic also hopes to bypass the App Store altogether, allowing people to download its games to their devices as they would on a PC. It wants the judge to declare Apple an illegal monopoly. It loses two arguments.

Here are the four key quotes that will appear on Friday:

1. “The court’s conclusion is that Apple’s reversal clause hides key information from consumers and illegally stifles consumers’ choices. Coupled with Apple’s initial antitrust violations, these anti-guidance clauses are anti-competitive. It is necessary to take remedial measures nationwide to eliminate these clauses.” Judge Yvonne Gonzalez Rogers

Although the court did not announce Apple An illegal monopoly is obviously engaged in anti-competitive behavior that needs to be corrected.

For years, developers have been complaining about this behavior.player of Fort nightDeveloped by Epic, it is possible to buy an in-game currency called “V-bucks” online, but these points will not be displayed when playing on the iPhone.

Gonzalez Rogers’ remedy will change this-even if it does not fully meet Epic’s requirements, it is a significant victory.

Apple at the beginning of this month Make concessions For the “reader application”, as long as it is outside the application, consumers can directly pay for Netflix and Spotify and the like. In fact, Friday’s ruling extended this rule to game applications that accounted for more than 70% of the App Store’s total revenue.

2. “Apple provides a safe and trustworthy user experience on iOS, which encourages users and developers to trade freely for mutual benefit.” Gonzalez Rogers

When Apple called the verdict a “great victory,” that’s what it pointed to.

Apple’s entire business relationship with thousands of developers is undergoing trial, and the court found its framework to be both effective and competitive. Its security measures and App review process-all of which have been dismissed by Epic as a “safe theater”-are considered a strict “Apple competitive advantage.”

It is easy to imagine that Apple quoted Gonzalez Rogers in courts around the world as saying that it and its developers “symbiotically benefit from the ever-increasing innovation and growth of the iOS ecosystem.”

3. “Except for legal action, nothing seems to be able to prompt Apple to reconsider pricing and lowering rates.” Gonzalez Rogers

Although Apple has not been found to be a monopolist under federal or state antitrust laws, Gonzalez Rogers has not let it out of its predicament completely.

She denounced the company’s anti-consumer behavior and agreed with Epic experts that the App Store’s profit margin was “very high”, exceeding 72%, and said that the gaming industry is unfairly subsidizing other developer communities.

In the quote above, she disputed CEO Tim Cook’s comments that Apple, out of sympathy for the difficulties during the coronavirus pandemic and a desire to promote competition, halved certain expenses to 15%. She quoted executives as saying that they admitted that the decision was also related to the imminent lawsuit.

4. “Today’s ruling is not a victory for developers or consumers. Epic is fighting for fair competition between the in-app payment method for one billion consumers and the app store.” Tim Sweeney, CEO of Epic Games

The CEO’s tweet and Epic’s confirmation that it will appeal the ruling indicate that the final outcome of this dispute will take at least one year.

There are losers Fort night Fans, as Sweeney said, Epic has no plans to restore this popular game on the iPhone until it “can provide in-app payments on a level playing field with Apple.”

Apple made it clear that it would not provide its in-app payments to any third party, and the judge also deemed it necessary to include them in the remedies she ordered.

Overall, although Epic announced that it will appeal, the lawsuit is bringing the biggest mandatory change to the iPhone since its launch in 2007.

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Christian Owens, CEO of Paddle, a revenue delivery platform, said that this ruling could be “very good for software companies, who can now sell their products on iOS without having to spend 30% of each sale. Give it to Apple.”

He added that given the tremendous pressure from developers and antitrust agencies around the world, Apple’s enthusiastic support for the verdict may be of strategic significance.

“When you are fighting, you will fight, but when it looks like the whole world is against you, you will accept change,” he said. “Apple has millions of developers, so this is a logical reason to regain the favor of the developer community.”

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