US Court Orders Relaxation Of App Store Rules After Apple Suffers Major Setback

Apple will be allowed to send its users to another payment system. This decision was given on the lawsuit of Epic Games, the maker of the famous game 'Fortnite'.

New Delhi: A US Federal Court dealt with the severe blow to the iPhone-making company Apple Inc. A Federal Court judge has ordered Apple to relax its app store rules. Following the judge's order, the company's app developers will be allowed to send their users to another payment system.

The judge gave the verdict on the trial of Epic Games, the maker of the famous game Fortnite in court. The judge's decision is seen as a major victory for Epic Games and other apps on the Apple Store. 

Judge Yvonne Gonzalez Rogers of the US District Court in Northern District, California, gave the verdict. However, in its decision yesterday, the Federal Court granted some relief to Apple and allowed it to continue to take a commission amount of 15 to 30 percent as in-app payments. This is the easiest way for customers to make payments on the App Store.

After the decision, Apple issued a statement saying, "The court's decision also shows that success is not illegal. Apple faces stiff competition in every segment. Customers and developers choose us because our products are the best in the world."

Apple's statement on the verdict 

At a media briefing, Apple's legal team said, "We don't think developers will be able to implement their own in-app purchase system after the court's decision. Officials said the company is considering how it will implement the court's decision."

However, the prosecuting company Epic Games is not entirely happy with the decision. As the judge himself said, the decision is a rational change in Apple's rules. However, analysts believe that the impact of the decision will depend on how Apple implements it. Epic Games is planning to appeal against the decision once again. Epic's case began when the game maker put its own in-app purchase system in its game Fortnite. About 40crore people around the world play this video game.

Apple shares fall after court verdict

However, the company's highest-grossing activity is under threat following the court's decision. If such a change takes place in Apple's App Store, it will save billions of dollars to app makers and encourage them to reduce prices that will benefit consumers. Apple shares were down by more than two percent in trade on Friday afternoon following the court's decision. Investors think the decision could cost the company billions of dollars in annual earnings.

Apple takes up to 30 percent commission on transactions through the in-app store. This includes digital transactions such as song music, Netflix, or Spotify subscriptions, including movies, etc.