Court rules against Apple to impose fees on out-of-app purchases, decision also made to resume distribution of iPhone version of Fortnite



Apple charges a 30% commission on in-app purchases for iPhones and iPads, and up to 27% on non-app purchases. A new court ruling has asked Apple to prohibit the collection of commission on non-app purchases. In response to this ruling, Tim Sweeney, CEO of Epic Games, the developer of Fortnite, has declared that the iPhone version of Fortnite will be re-released on the US App Store.

UNITED S TATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA
(PDF file) https://storage.courtlistener.com/recap/gov.uscourts.cand.364265/gov.uscourts.cand.364265.1508.0_2.pdf

A judge just blew up Apple's control of the App Store | The Verge
https://www.theverge.com/news/659246/apple-epic-app-store-judge-ruling-control

Apple charges a fee for in-app purchases on iPhones and iPads, and Apple collects 30% of the amount paid by the user as a fee. Because this fee was too high, Epic Games had prepared its own payment method, but Apple removed Epic Games' 'Fortnite' from the store, so Epic Games filed a lawsuit against Apple in August 2020. As a result of the trial, in 2023, Apple was ruled that 'Apple should not prohibit the placement of links to external payment systems within apps.'

Following the ruling, Apple allowed US developers to place links to external payment systems within their apps. However, it also announced that it would impose a maximum 27% commission on payments made outside of the app. In addition, it set detailed rules on the appearance and text of 'links to external payment systems' placed within apps.

Apple finally allows iPhone apps to 'insert links to external billing systems,' but fees apply - GIGAZINE



Epic Games filed a court challenge to Apple's demand for a maximum 27% fee for external payment systems, arguing that it would 'undermine the court's order.' In addition, major developers such as Meta, Microsoft, X, Match Group, and Spotify also filed a court brief stating that 'Apple's large fees for external payment systems are inconsistent with the letter and spirit of the 2021 ruling that requires app developers to direct users to their own payment systems,' and sought to reduce or eliminate the fees.

Epic Games plans to challenge Apple tax on web payments as 'undermining court orders' - GIGAZINE



Judge Yvonne Gonzalez Rogers, who presides over the case between Apple and Epic Games, ruled that Apple must prohibit the collection of fees for out-of-app purchases by April 30, 2025. The ruling includes the following demands on Apple:
Apple must not charge fees or commission on purchases made outside of the app.
Apple must not impede buttons or other calls to action to access the out-of-app purchase system.
Apple must not restrict the style, format, or placement of links to out-of-app purchase systems.
Apple must not prevent users from leaving the app in any way other than a 'neutral message informing the user that they are going to a third-party website.'

Judge Rogers also noted that Apple 'willfully failed to comply with the court's orders,' and indicated that he would refer the case to federal prosecutors for consideration of possible contempt of court.

Following the ruling, Epic Games CEO Sweeney commented, 'The Apple tax is over. Apple's rubbish 15-30% fees are now banned in the US as well as Europe under the Digital Markets Act. It's illegal here, it's illegal there.' In addition to declaring that they would resume distribution of Fortnite on the US App Store, they also said, 'If Apple expands the fee exemption framework worldwide, we have also offered a peace proposal to return Fortnite to App Stores around the world and to withdraw current and future litigation related to this issue.'




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in Mobile,   Software,   Game, Posted by log1o_hf