Judge Yvonne Gonzalez Rogers handed down a decision in the Epic Games v. Apple trial on Friday. Rogers issued an injunction that said that Apple will no longer be allowed to prohibit developers from providing links or other communications that direct users away from Apple in-app purchasing. Her ruling could cost Apple a couple billion dollars per year.
Mark Gurman for Bloomberg News:
In a ruling Friday, U.S. District Judge Yvonne Gonzalez Rogers said the company must allow all developers to bypass its commission on in-app purchases — a cut that runs as high as 30%. That includes letting iOS apps use “buttons, external links or other calls to action that direct customers to purchasing methods” other than Apple’s payment system.
It’s a blow to Apple, but one that the world’s most valuable company can likely absorb. And Apple dodged an even bigger risk — that the judge might determine that it was a monopolist under either federal or state laws.
Apple’s commissions from the App Store generated an estimated $6.3 billion last year in the U.S. — with most of it coming from in-app purchases and subscriptions. That money is what’s at stake as games and other apps prepare to steer consumers away from Apple’s payment system.
Apple said that it’s still too early to determine how or when exactly the changes will be implemented and that it needs to have conversations with the judge. It also said that it would engage in ongoing dialogue with developers about the changes.
But even if the ruling ends up costing Apple a few billion dollars a year, that’s still a small fraction of its total revenue. In fiscal 2021 alone, the company is estimated to bring in more than $360 billion, meaning the change won’t make or break its overall financial performance. Some developers may also choose to stick to Apple’s payment system so they don’t have to build their own web payment platform.
MacDailyNews Take: For the sake of security, many App Store users will also continue to use Apple’s in-app payment systems rather than submit their financial information to third-party payment systems from a relatively few developers.
Why would Apple even keep the App Store in operation if this ruling is up held. It make no sense. It is Communism. This like ruling Amazon is required to sell everything on their site and make no profit. Or Target is required to allow manufacturers to put their products in their stores and add a tag saying you can buy it cheaper if you come to our factory outlet and make no profit. This has got to be a Marxist judge.
Fulfilled by Amazon costs $49/month + a percentage of your sales. This ruling against Apple makes no sense.
Apple completely won. All the bogus antitrust garbage was thrown out, rightly. And this was even by a commie California (I know I repeat myself) court.
The only thing left was some California law on information disclosure requiring links, something apple had recently implemented and allowed anyway. Good luck with people clicking a link to go to another store, and enter their payment information a new there. Will only reinforce how good apple’s systems are. Further, it’s questionable if the California law on disclosure is itself constitutional, and I suspect will be appealed.
This was a complete slam dunk win for apple.
That the tech financial press has its head up its rear and doesnt get it or doesnt want to get it for clickbait is just par for the course of their ineptitude.
This bs propaganda is not just for clicks, but the financial services area loves this tanking apple stock to buy it up on the cheap, because this is going to make NADA ZIP ZILCH difference to apple’s bottom line, and in the mean time, they are getting suckers to sell their apple shares for cheap on this bs market manipulating news.
Like I’ve been saying, this is all bs clickbait by idiots in the press. Apple won this. No one is putting alternative pay buttons into the App Store. This is noise.
“No, the Epic v. Apple injunction absolutely positively DOESN’T allow developers to incorporate ‘buttons’ for alternative IN-APP payment mechanisms”
http://www.fosspatents.com/2021/09/no-epic-v-apple-injunction-absolutely.html
And this comes from an idiot that was rooting for Epic to win:
“I’ve been rooting for Epic, and I wish everyone were as honest as Epic Games CEO Tim Sweeney after losing a court battle. But I’m absolutely committed to telling people the truth.”
Told you.
And even this dimwitted turnip sees it despite being snowed by lying bastage Tim Scammy.
Sorry zombie, not a slam dunk for Apple 100%.
Monopolist charges Apple won only because Epic could not prove it. Others may come along in the future, but I doubt it the bar is much higher now.
“Apple’s commissions from the App Store generated an estimated $6.3 billion last year in the U.S. — with most of it coming from in-app purchases and subscriptions. That money is what’s at stake as games and other apps prepare to steer consumers away from Apple’s payment system.”
As Apple readjusts to comply with judges orders Apple no longer has an exclusive lock on Apple profits. Big loss here.
But I agree with so many others have posted it is a ridiculous decision and should not stand.
That said Apple stands to lose billions as this plays out and certainly not a slam dunk for Apple until all said and done…
They have enough money and they don’t mind it at all
Some Apple investors are such Nervous Nellies, but that’s a good thing for loyal long-term investors. When it comes to Apple, smart investors buy when stupid investors sell. Anyway, Apple is such an easy target for detractors to go after. I can see other countries going after Apple’s App Store and there’s very little Apple can do about it.
I hope Apple can find some other way to go after that couple of billion year loss. Most likely, Apple which simply charge more money for its hardware. Problem solved.
Good thing Apple getting 15 billion from Google this year for the default position. 🙂