Apple seeks more time to comply with court order that could shake up App Store model

New Delhi:

Apple is reportedly seeking extra time to comply with a recent US court ruling that forces the tech giant to allow developers to redirect users outside of the App Store for in-app purchases, without paying Apple a commission. According to a report by Bloomberg, Apple has filed an appeal and asked the court to pause the enforcement of the ruling.

Apple defended its position, stating the order would lead to “substantial financial losses” based on conduct that was never found unlawful. The company claimed the court’s actions were designed to punish it for allegedly violating a prior state law injunction, which Apple believes is invalid.

What the ruling means for developers

As of now, Apple is prohibited from blocking developers from steering users to external payment platforms via links, buttons, or in-app messages. It also cannot collect commissions on those external purchases. This ruling could significantly alter Apple’s long-standing App Store business model, which relies heavily on in-app purchase commissions—often referred to as the “Apple Tax.”

Tied to Epic Games case: Judge accuses Apple of misconduct

The recent court decision stems from Apple’s legal battle with Epic Games, the maker of Fortnite. In the latest development, US District Judge Yvonne Gonzalez Rogers ruled that Apple knowingly violated a 2021 injunction that aimed to make the App Store more competitive. She noted that Apple’s actions were profit-driven and ignored the court’s original intent.

The judge pointed out that CEO Tim Cook approved a plan that introduced a controversial 27 per cent commission on external payments, which she saw as an effort to protect profits, not consumers.

Criminal investigation could follow

In a serious turn, Judge Rogers has referred Apple and its Vice President of Finance, Alex Roman, to the US Department of Justice. She accused Roman of delivering misleading and false testimony under oath regarding Apple’s compliance efforts. This raises the possibility of a criminal contempt investigation.