Apple can’t ban links to payments outside the App Store, says a US appeals court
A US appeals court on Monday upheld a federal court order that could force Apple Inc to change payment practices in the App Store.
Apple said it could appeal the decision. The 9th US Circuit Court of Appeals upheld a 2021 order in an antitrust case brought by Fortnite creator Epic Games that could require Apple to allow developers to provide links and buttons to third-party in-app payment options and avoid paying sales commissions to the iPhone maker.
Apple’s stock rose slightly to $165.33. The appeals court defended Apple in nine other cases, agreeing with the district court that Apple’s App Store rules do not violate antitrust laws and allow its 30 percent commissions on in-app payments.
“For the second time in two years, a federal court has ruled that Apple is in compliance with antitrust laws at the state and federal level,” Apple said in a statement. “We respectfully dissent from the court’s decision on the one remaining state law claim and will consider further review.”
Apple did not say whether it plans to appeal to a larger 9th Circuit panel or to the US Supreme Court. The company has 14 days to file a complaint. The district court’s decisions are put on hold while any appeals are processed.
In a statement, Epic acknowledged that it lost its antitrust claims, but said the trial court’s order “frees up iOS developers to send consumers online to engage with them directly there. We’re working on the next steps.”
Although Epic lost the lawsuit on most of its claims that Apple violated antitrust laws, the trial judge found that Apple violated California’s unfair competition laws by preventing developers from telling users about other payment methods.
A district court judge said Apple can no longer ban links and buttons to third-party payment options. But unlike competition authorities in several countries, the district court judge did not provide guidance on how Apple must allow those links or buttons, leaving open the possibility of future legal battles over how to make the changes.
The appeals court said the district court’s order for Apple to change its behavior was appropriate because it would be too difficult to put a price on the harm Apple’s rule caused to Epic.
“The district court did not clearly err in finding that Epic suffered an injury for which monetary damages would be inadequate,” the 9th Circuit wrote Monday.
Competition authorities in other countries, such as South Korea, the Netherlands and Japan, have forced Apple to open up its in-app payment systems.
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