Apple Faces Court Ruling to Maintain Web Links and External Payments in App Store
In a significant legal development, Apple has been mandated to continue allowing web links and external payment options in its App Store following a higher court’s rejection of its request to halt enforcement of an earlier ruling. This comes as part of ongoing scrutiny regarding the company’s App Store practices.
Earlier this year, a federal judge ruled that Apple must grant developers the ability to incorporate web links within their iOS applications. Additionally, the court ordered Apple to lift restrictions on link formatting and to permit external payment systems without levying commissions on transactions. Following this ruling, Apple appealed and sought a delay on the order’s implementation as the legal proceedings continued.
Court’s Decision Against Apple
In a recent decision, the United States Court of Appeals denied Apple’s urgent request to pause the district court’s order. The appellate panel found that Apple did not sufficiently demonstrate a strong likelihood of success in their appeal, nor did they prove that they would face irreparable harm if the order was put into effect. The court also stated that the potential negative impact on other parties, as well as the public interest, did not justify an immediate suspension of the ruling. This latest development complicates Apple’s efforts to overturn the earlier decision, which stemmed from a lawsuit initiated by Epic Games.
Background: The Epic Games Lawsuit
Epic Games filed its lawsuit against Apple’s App Store policies in 2020, arguing that the company’s restrictions were detrimental to fair competition. While Epic did not win on all fronts, the court found in favor of allowing developers to inform users about alternative purchasing options that could offer better prices. Despite this partial victory, Apple has struggled to fully comply with the conditions outlined in a prior ruling from 2021, prompting the judge to issue a more comprehensive mandate in April.
Impact on Third-Party Applications
In direct response to the April ruling, several notable third-party apps have quickly integrated web-based purchasing links. For instance, both Spotify and Amazon’s Kindle app have introduced buttons that guide users to purchase subscriptions directly from their websites, thereby circumventing Apple’s in-app payment system. Additionally, Fortnite has recently relaunched on iOS after nearly five years, offering users a choice between Apple’s payment method and Epic’s alternative system. According to Epic CEO Tim Sweeney, the current usage is split 60:40 in favor of Apple’s system, though this gap is reportedly narrowing.
Apple’s Response
In light of the court’s decision, Apple spokesperson Olivia Dalton expressed the company’s disappointment:
We are disappointed with the decision not to stay the district court’s order, and we will continue to argue our case during the appeals process. As we have said before, we strongly disagree with the district court’s opinion. Our goal is to ensure that the App Store remains an outstanding opportunity for developers and a safe, trusted experience for our users.
The Road Ahead
For the time being, Apple is required to adhere to the existing court order. Unless the Appeals Court later decides to overturn this ruling, developers will have the freedom to include web payment links, meaning Apple’s historically dominant grip on iOS payment processing is likely to wane further. The eventual outcome will hinge on the resolution of the ongoing appeals, potentially establishing a landmark precedent for the future operation of app marketplaces.
Source: The Verge
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