The US Supreme Court has rejected an Epic Games Inc. request to allow developers to direct iPhone users to other purchasing options, thereby allowing Apple Inc. to keep its App Store payment rules intact for now. Justice Elena Kagan stated that she would not allow a federal appeals court decision to take immediate effect, as Epic had requested. Earlier this year, the 9th US Circuit Court of Appeals ruled that Apple violated California’s Unfair Competition Law by limiting developers’ ability to communicate about alternative payment systems, including purchases through the Epic Games Store.
Justice Kagan, who is responsible for handling emergency matters from the 9th Circuit, did not provide an explanation for her rejection of Epic’s request. This means that Apple will receive temporary relief from the 9th Circuit ruling. However, if the Supreme Court refuses to hear the case, the ruling will come into effect. Apple charges developers a commission of up to 30% for digital goods and services sold through its App Store, making the outcome of this dispute potentially impactful on the company’s revenue which amounts to billions of dollars.
No immediate comments were provided by either Apple or Epic in response to the Supreme Court’s decision. In court papers, Epic argued that the 9th Circuit used an incorrect legal standard when it put its ruling on hold and that this will result in harm not only to Epic but also to numerous consumers and app developers for a significant period of time. Apple, on the other hand, urged the Supreme Court to maintain the hold on the 9th Circuit ruling, stating that Epic was not being negatively affected by the disputed policy. Apple expelled Fortnite, a popular game developed by Epic, from the App Store because Epic sought to avoid paying a 30% fee on customers’ in-app purchases by creating a workaround.
Epic noted that its subsidiaries still have apps available on the App Store. Ultimately, the Supreme Court case is identified as Epic Games v. Apple, 23A78. – Bloomberg
Credit: The Star : Tech Feed
