US court orders Apple to relax in-app purchase rules after Epic Games lawsuit | US news

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A US judge has told Apple it should ease its restrictions on in-app purchases, following a lawsuit brought by Fortnite creator Epic Games and other publishers.

The iPhone and iPad vendor has been told it can’t prevent developers from showing buttons or links that allow customers to pay for things outside of Apple’s payment processing system.

Epic wanted the judge to go further, calling for Apple to be classified as an illegal monopoly.

But US District Judge Yvonne Gonzalez said the games company had failed to prove that point in its arguments – though she said it had already shown that Apple was engaging in “non-competitive behavior” under California law.

Epic says it plans to appeal the initial decision, and Apple says it has not ruled out an appeal either.

Photo: Epic said it is appealing the decision

Apple charges a commission of up to 30% on transactions made through its platform — including on things like a Netflix or Spotify subscription.

Spotify’s chief legal officer said the company is pleased with the decision regarding Apple’s “competition-friendly” behaviour.

The injunction covers only the United States, but Apple made a similar change in Japan due to an investigation by the competition watchdog there.

The UK Competition and Markets Authority launched an investigation into Apple’s practices in March.

Fortnite, Epic’s main game, is free to play, but customers can pay for cosmetic changes to characters and other perks.

Experience has heard that Apple has made at least $100m (£72.2m) from processing Fortnite sales in the past two years.

Epic’s petition was backed by a number of other software companies, including Spotify and Match Group, the owner of Tinder.

After the announcement in the US, Apple’s value fell by $87 billion (£62.8 billion) – although its capitalization still exceeded $2 trillion (£1.4 trillion).

Judge Gonzalez’s ruling came three months after the trial in the case.

It said developers could put in their apps “buttons, external links, or other calls to action that direct customers to purchasing mechanisms.” But the judge refused to force Apple to open its devices to alternative app markets.

In a statement, Apple said: “As the court has recognized, the success is not illegal.

“Apple faces stiff competition in every sector in which we do business, and we believe that customers and developers choose us because our products and services are the best in the world.”

In Japan, Apple agreed to allow “reader” apps – such as Netflix – to show customers links to sign up outside the Apple ecosystem.

The UK’s Financial Market Authority investigation is examining “whether Apple imposes unfair or anti-competitive terms on developers using the App Store, which ultimately results in users having fewer options or paying higher prices for apps and extensions”.

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