Apple has officially lodged its appeal against a recent court decision mandating that it must permit external payment systems in its App Store. The ruling by Judge Yvonne Gonzalez Rogers comes as a significant blow to Apple’s lucrative App Store model, which heavily relies on revenue generated from in-app purchases, including virtual items and subscriptions.
In her judgement, Judge Rogers firmly pointed out Apple’s failure to comply with the court’s directives, accusing the company of imposing unreasonable restrictions and attempting to circumvent the order. The court even raised concerns regarding the integrity of Apple’s Vice President of Finance, Alex Roman, suggesting he misled the court under oath, and has referred this matter for potential criminal contempt proceedings.
Following the ruling, Apple quickly altered its App Store guidelines in compliance with the court’s decision, allowing U.S. developers to provide app updates that mention alternative payment methods, such as Spotify. Yet, Apple expressed strong dissent against the ruling and filed its notice of appeal immediately thereafter.
Apple contended that it was adhering to the legal requirements by allowing app developers to apply for exceptions to its App Store regulations, albeit while insisting on a 27% commission for purchases made through external links. Apple also mandated the use of pop-up warnings to inform consumers about the risks associated with purchasing directly from developers’ websites.
As the appeal unfolds, Apple has committed to following the court’s orders. However, if it recognises its position as untenable, the company might consider strategies to encourage developers to continue using its in-app purchase system. One potential tactic could be the announcement of a reduced commission rate at their upcoming Worldwide Developers Conference in June, aimed at all developers, not just those eligible under its Small Business Program. This approach may help retain developer loyalty amidst ongoing legal challenges.
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