Apple Appeals Epic Games Ruling, Seeks Hold on App Store Changes

Apple's App Store Ruling and Ongoing Legal Battles

Last month, a federal judge determined that Apple did not operate as a monopolist in the case of Epic Games v. Apple. However, the court’s decision did identify one area where Apple’s practices were deemed problematic: the regulations governing its own App Store.

Changes to App Store Policies

The judge’s ruling favored Epic Games, stipulating that Apple is no longer permitted to restrict developers from directing users to alternative payment options outside of Apple’s established systems. Consequently, Apple has filed an appeal and requested a stay of the injunction issued by the judge.

This action by Apple could potentially postpone any modifications to the App Store’s rules until a definitive verdict is reached following the appeals process.

Developer Communication and External Links

The court ordered Apple to revise its App Store policies to eliminate prohibitions against developers including external links and calls to action within their applications. These links could guide customers to purchasing options beyond in-app purchases.

Furthermore, Apple was prevented from hindering developers’ ability to communicate directly with customers using contact information obtained through app registration, as outlined in the injunction.

Global Regulatory Shifts

This outcome aligns with recent settlements Apple has reached both domestically and internationally. A notable example is the agreement with a Japanese regulator, which prompted a policy change for “reader apps,” enabling them to incorporate links to their websites within their applications.

Similarly, South Korea enacted legislation to prevent both Apple and Google from mandating the use of their in-app billing systems. Additionally, a recent class-action settlement in the U.S. clarified that developers are allowed to utilize communication channels, such as email, to inform iOS users about alternative payment methods.

Implementation Timeline and Paddle's Response

The Epic Games ruling mandated that Apple implement these new rules within 90 days of the September 10, 2021, court decision. Some companies began preparing for this potential shift.

For instance, Paddle, a provider of solutions for subscription-based businesses, announced the upcoming launch of a new in-app purchasing system designed for iOS developers. This system was intended to serve as a substitute for Apple’s own, pending the injunction’s enforcement.

Impact of a Potential Stay

Should Apple secure the stay, the early December deadline for compliance with the injunction would be nullified while the appeals case proceeds. This could mean no changes for App Store developers for an extended period.

The Core of the Dispute

While Apple prevailed on almost all counts in the Epic Games litigation, the ruling regarding its “anti-steering” rules represented a significant concession. However, further legal proceedings were anticipated due to Epic’s planned appeal.

Epic Games' Continued Dissatisfaction

Despite gaining the right to include links to alternative payment methods, Epic Games expressed dissatisfaction with the court’s initial determination that Apple’s success was “not illegal.” They filed their own appeal in mid-September, seeking to persuade the appeals court that Apple was engaging in monopolistic practices.

Beyond the Courtroom: Concerns About Apple's Platform

The conflict between the two technology companies extends beyond the courtroom. Recently, Tim Sweeney, CEO of Epic Games, highlighted on Twitter Apple’s practice of promoting its own applications to customers through the iPhone’s Settings screen.

Sweeney argued that this constitutes an advertising advantage unavailable to competing third-party developers. Apple has not indicated whether it will address this issue in future legal proceedings.