Apple filed an emergency motion. They are requesting a partial stay on a U.S. court ruling that would require them to make major changes to their App Store policies. The tech behemoth is already in hot water due to a years-old suit filed by Epic Games. Epic has long accused Apple of monopolistic practices in requiring purchases through its app store. In 2021, that same court sided with Epic Games on many counts. This ruling made Apple allow app developers to include functionality that leads users to off-platform payment options so they can bypass Apple’s commission cut.
Apple has still not implemented the 2021 order. The order requires that they cease from collecting commissions on payments made through third-party payment systems. The court’s ruling was intended to enhance competition. Beyond that, it provided more flexibility to developers in how they created applications and handled payments therein. As things stand, Apple currently takes a whopping 27% commission from app developers on all transactions processed via these alternative systems.
The ruling orders Apple to discontinue the use of “scare screens.” These clicking pop-up warnings are meant to educate users on the reported dangers of using in-app purchase payment methods other than Apple’s. Apple has come out strongly against this part of the ruling. They further maintain that they are being penalized for conduct that has yet to be shown to be illegal.
In its emergency motion, Apple claimed that Apple would lose hundreds of millions of dollars if the new order were implemented. The company argued that the limits on its operations ordered by the court would result in “serious irrevocable injury” absent a stay.
“These restrictions, which will cost Apple substantial sums annually, are based on conduct that has never been adjudicated to be (and is not) unlawful; rather, they were imposed to punish Apple for purported non-compliance with an earlier state-law Injunction that is itself invalid,” – Apple.
As the case progresses, this ruling may be far reaching in its impact. It stands to potentially redefine the rules for app distribution, the conduct of payment processing on marketplaces such as Apple’s App Store. This decision marks a significant inflection point for technology corporations in how they control in-app purchases. Second, it would establish an important precedent for how to adjudicate future conflicts in such digital marketplaces.
It’s not yet clear how the appeals court will rule on Apple’s request for a partial stay. If granted, this would mean that the enforcement of the court’s ruling would be delayed. It would provide Apple with relief in order to buy some time while it appeals the conditions from the court.
