Judge loosens Apple’s grip on app store in Epic decision

10 September 2021, 18:14

Apple-App Store Changes-Explainer
Apple-App Store Changes-Explainer. Picture: PA

This could potentially also save app developers billions of dollars that could encourage them to lower the prices paid by consumers.

A federal judge has ordered Apple to dismantle part of the competitive barricade guarding its closely run app store, threatening one of the iPhone maker’s biggest moneymakers.

It could potentially also save app developers billions of dollars that could encourage them to lower the prices paid by consumers.

The challenge was mounted by Epic Games, best known as the maker of Fortnite, the popular video game played by about 400 million people worldwide.

Apple shares dipped sharply immediately after the ruling was made and were trading down 3%. Epic, based in Cary, North Carolina, is a private company.

An Apple store employee in New York
An Apple store employee in New York (Mark Lennihan/AP)

The legal battle was aimed at commissions of up to 30% that Apple has been charging on digital transactions within apps.

Such transactions can include everything from Netflix or Spotify subscriptions to the sale of digital item such as songs, movies or virtual tchotchkes for video games.

Epic cast that highly lucrative fee as a price-gouging tactic that wouldn’t be possible if competing stores were allowed to offer iPhone apps.

An appeal of the ruling by one or both companies seems likely.

The 185-page ruling issued by US District Judge Yvonne Gonzalez Rogers comes three months after the conclusion of a trial focused on one of the pillars holding up Apple’s 2 trillion dollar empire — one that Apple’s late co-founder Steve Jobs began to shape 20 years ago.

Since that trial ended, Apple has taken two steps to loosen some of its app store rules — one to settle a lawsuit and another to appease Japanese regulators without altering its commissions.

Those concessions make it easier for many apps to prod their users to pay for digital transactions in ways that avoid triggering Apple’s fees.

By Press Association

More Technology News

See more More Technology News

Sam Thompson using an Echo device to support living with ADHD

Amazon launches campaign to show how Alexa can support those with ADHD

Microsoft introduced the AI assistant button

More funding needed for women-led AI start-ups, report says

Westminster

MPs shown Scottish-made ‘unicorn’ satellite at committee meeting

Facebook staff lay offs

Former Meta HQ in London to become science and tech hub

A Nationwide Building Society sign

Nationwide Building Society launches British Sign Language service

Cyber threat report

UK in ‘better position’ against cyber attacks, but most businesses not resilient

Drone

Flying taxis could take off in two years under Government drones plan

Supermarket technical issues

Tesco and Sainsbury’s hit with technical issues on same day

Apple logo in window of store

Norfolk County Council secures settlement as Apple agrees £384m lawsuit payment

Civil Service roles to relocate

Whitehall lacks the skills to implement AI, says National Audit Office

Laptop under cyber attack

Health board hit by cyber attack with ‘significant quantity’ of data at risk

Children and violent online content

Encountering violent online content starts at primary school – Ofcom

Bitcoin

Australian computer scientist is not Bitcoin founder Satoshi, High Court rules

Google website

Google starts rollout of restrictions on AI as key global election year looms

The gov.uk website

NHS and Government websites should be made free of data charges, ministers told

Schools minister Damian Hinds

Getting a mobile phone ‘a rite of passage’ for children, says schools minister