Apple Avoids Third-Party Payments in App Store as Case Reaches Supreme Court

The courtroom saga involving tech giant Apple and Epic Games takes a new twist. In a surprising move, the courts have granted Apple an essential reprieve, allowing the company to sidestep one of the lower court's decisions that threatened to change the App Store landscape and significantly reduce Apple’s revenues.

Apple initially won its litigation against Epic Games, the creator of Fortnite, who sought to challenge the monopoly that Apple held over its App Store. The battle's central contention was Apple’s charge of a 15%-30% commission on in-app purchases and subscriptions, a situation that upset many app developers seeking to reduce their costs. Despite being declared not a monopoly, Apple remained discontented with the injunction to give developers the liberty to incorporate their payment systems.

In a new development recently disclosed by The Verge, the courts agreed to a motion that gives Apple a 90-day grace period to prepare its case for the Supreme Court. If this motion were not granted, Apple would have to permit app developers to establish their payment systems in the App Store, a condition that would lead to a significant reduction in the tech giant’s income.

This news emerges from an ongoing legal battle that commenced in 2020 when Epic Games filed a lawsuit against Apple. Epic Games contested the monopoly of Apple over in-app payment commissions, advocating for the court to halt these practices and allow developers to use their payment processors. However, the courts have now agreed to delay changes to the App Store’s anti-steering policies.

Despite this, not everyone is content with the court’s decision. Ninth Circuit Judge Milan D. Smith Jr. expressed his disagreement, while Tim Sweeney, CEO of Epic Games, aired his displeasure on Twitter. However, the stay will persist once Apple notifies the court that it has filed a petition with the Supreme Court. While justice, in this case, seems delayed, it indeed remains of interest to many in the tech industry. Will Apple maintain its App Store stronghold, or will this case initiate the democratization of in-app payments? Only time will tell.