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Apple Gets Around Epic Games Ruling, Faces New Legal Threat

Apple Park, Cupertino

A court ruling against Apple that opened up its App Store revenue stream to third parties has largely fallen apart.

Fortnite developer Epic Games had taken Apple to court for ejecting it from the App Store because the game maker linked to its own payment system.

Apple’s practice didn’t breach anti-trust law, but it was found to breach California’s Unfair Competition law by forcing users to pay for apps and in-app purchases through its App Store. Apple was denied the right to appeal the decision against it.

Apple could have lost billions annually with App Store vendors adding in-app links to their own payment system, to avoid Apple’s sales commission.

“Regulators are taking action and policymakers around the world are passing new laws to end Apple’s illegal and anticompetitive app store practices,” said Epic Games CEO Tim Sweeney yesterday.

However, today is a different story, with Apple largely sidestepping the issue.

It will require developers to seek permission to have an in-app link to their private payment system and that will cost money.

SiliconAngle.com reports that developers will pay a 27 percent fee for in-app purchases through a third party payment system. Those that join Apple’s small business program will pay a lower fee of 12 percent. That cut will also apply to subscriptions of at least two years duration.

The fees are less than a standard 30 percent cut but do reinstate most of Apple’s lucrative commission revenue stream

Apple will know if a user has tapped a link to an external payment system; it will even display a warning message that it is not responsible for user privacy or the payment’s security, says the publication.

This fee situation does not apply in Australia as the law Apple has to comply with is a Californian state law, not an anti-trust or anti-competition law that can be pursued internationally.

Apple, however, faces a new threat, another anti-trust lawsuit being prepared by the US Justice Department.

Bloomberg reports that investigators are homing in on software and hardware features found on iPhones and iPads that impede third parties on the platform.

Spotify, Bluetooth Tile tracker Life360 and messaging service Beeper are among companies that believe they are at a disadvantage on Apple’s platform, says Bloomberg.

The Justice Department hopes to file its lawsuit in the first three months of this year, the report says.



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