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Apple Files Request Asking for Reprieve on In-App Purchase Policy

Apple has filed a request asking for a reprieve on an order from lower federal courts that demanded the company change its policy on in-app purchases. This comes a day after Epic Games petitioned the Supreme Court to weigh in on the ongoing antitrust case against Apple.

Epic Games, the developer behind Fortnite and the popular Unreal game development tool, disagrees with the rulings of the District Court for the Northern District of California and the Ninth Circuit Court of Appeals, which determined that Apple did not have a monopoly on the app market. Despite this, Apple bars competing app stores from iPhones and iPads, which Epic claims gives Apple an unfair monopoly.

Apple takes a 30% cut of all App Store purchases, and Epic argues that this exclusivity allows Apple to collect billions of dollars in supracompetitive profits. On the other hand, Apple argues that its apps are readily available on other platforms like game consoles and Google Play, and therefore it does not have a stronghold on the market.

In its own petition to the Supreme Court, Apple asks for the lower courts’ determination that developers must be allowed to inform customers of alternative ways of buying in-game add-ons to be overruled. Apple claims that this requirement violates California laws on unfair competition.

The ongoing legal battle between Epic Games and Apple has resulted in the removal of Fortnite from Apple’s ecosystem. If Epic Games wins the case, it could significantly impact Apple’s revenue stream from the App Store, which accounted for $78.1 billion in revenue for the company in 2022. On the other hand, if Apple wins, it will be allowed to continue its business practices that have been criticized by other companies including Spotify, Match Group, and Tile. The outcome of this case is also expected to affect Epic Games and Match Group’s ongoing lawsuit against Google Play.

The Supreme Court has until January to decide whether it will hear the case.

Sources:
– The source article.