Epic vs Apple's Ruling Delays payments for Third-party Apps - What does It Mean for You

Epic vs Apple's Ruling Delays payments for Third-party Apps - What does It Mean for You

The Court of Appeals granted Apple's request for a stay of the Apple Store changes required by the Epic Games v. Apple decision. The stay allows Apple to continue the IAP system as the only in-app purchase on iOS.

This is in contrast to the district court's previous ruling that the exclusive arrangement was illegal. This means that consumers will not see third-party app payments on iOS for the foreseeable future.

In the original ruling, Judge Yvonne Gonzalez Rogers had asked Apple to adjust its App Store guidelines to allow developers to use third-party payment options. By December 9, Apple had allowed developers to allow customers to make digital purchases outside of the App Store. Apple had set a deadline of December 9 for developers to allow customers to make digital purchases outside of the App Store.

"Apple has demonstrated, at a minimum, that its appeal raises serious questions about the merits of the district court's decision. Accordingly, we grant Apple's motion to stay part (i) of subsection (1) of the permanent injunction." This injunction shall remain in effect until an order is entered in this action."

The court found that "the injunction is not a permanent injunction, but rather a final injunction.

The decision continues, "Accordingly, Apple's motion for a stay of the (i) portion of paragraph (1) of the permanent injunction is granted. This stay shall remain in effect until an order is entered in this action.

As noted by The Verge, this injunction does not extend to the second part of the injunction, which addresses communications with non-iOS users. The court ordered Apple to allow it to "communicate with customers through contacts obtained voluntarily from customers through in-app account registration."

Apple does not want to change its current policy because it claims that it is a privacy and security risk that could result from allowing customers to use third-party payments.

In a statement to Tom's Guide attributed to Apple, the company said:

"We are constantly evolving the App Store to create a better experience for our users and our incredibly talented community of iOS developers. constantly evolving. Our concern is that these changes will create new privacy and security risks and will interfere with the user experience that our customers love about the App Store. We are grateful that the Court granted this stay while the appeals process continues.

Apple's concerns are not without merit, and it makes sense that it would want to protect its customers from the potential risks of allowing third-party payment options. Apple also markets itself as the leading privacy advocate in the cell phone space. However, this limits users to paying through iOS rather than third-party proprietary systems.

This means that Apple will always be able to take an indefinite share of App Store sales, which, given the size and scope of its market, may constitute monopolistic conduct, at least according to Epic, not Judge Gonzalez Rogers. However, the stay may be merely a reprieve, since Apple must comply with the original order even if it loses in the appeals court.

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