Apple Appeals Court Ruling
Apple Inc is taking its own sweet time in making changes on its App Store business model following a court ruling requiring it to do so.
The iPhone maker said that it would appeal a judge’s ruling in its fight with Epic Games Inc. ordering the Californian-based company to stop blocking developers from letting users complete in-app purchases on the web.
A change in its App Store business model launched in 2008, could cost the tech giant billions in lost revenue.
According to Bloomberg Intelligence, the pressure on Apple to lower its commissions which is currently standing at 30 per cent could half its revenue by US$2 billion (about $6 per person in the US) to US$4 billion in a worst-case scenario.
On September 10, a court ruling vindicated Apple’s business model on ways it charges commissions on developers on the App Store transactions.
The judge has asked the company to make changes to allow users to communicate directly with the app makers and allow links to the web to complete transactions.
“Apple is working hard to address these difficult issues in a changing world, enhancing information flow without compromising the consumer experience,” the company said in a statement.
The company also wants to appeal the decision of the change citing it wanted to maintain the current way app makers transacted on the store.
A postponement would give the company time to address concerns in a way that could potentially do away with the need to let developers allow consumers to make web purchases, the company said.