{"id":121204,"date":"2021-09-10T17:07:44","date_gmt":"2021-09-10T17:07:44","guid":{"rendered":"https:\/\/fin2me.com\/?p=121204"},"modified":"2021-09-10T17:07:44","modified_gmt":"2021-09-10T17:07:44","slug":"u-s-judge-in-fortnite-case-strikes-down-apples-in-app-payment-restrictions","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/u-s-judge-in-fortnite-case-strikes-down-apples-in-app-payment-restrictions\/","title":{"rendered":"U.S. judge in 'Fortnite' case strikes down Apple's in-app payment restrictions"},"content":{"rendered":"

(Reuters) – A U.S. judge on Friday issued a ruling in \u201cFortnite\u201d creator Epic Games\u2019 antitrust lawsuit against Apple Inc\u2019s App Store, striking down some of Apple\u2019s restrictions on how developers can collect payments in apps.<\/p>

3D printed Lady Justice figure is seen in front of displayed Apple and Epic Games logos in this illustration photo taken February 17, 2021. REUTERS\/Dado Ruvic\/Illustration\/File Photo<\/figcaption>

The ruling is similar to a move that Apple made to settle an antitrust ruling in Japan last week and says Apple cannot bar developers from providing buttons or links in their apps that direct customers to other ways to pay outside of Apple\u2019s own in-app purchase system, which charges developers commissions of up to 30%. The ruling also said that Apple cannot ban developers from communicating with customers via contact information that the developers obtained when customers signed up within the app.<\/p>\n

The ruling comes after a three-week trial in May before Judge Yvonne Gonzalez Rogers of the U.S. District Court for the Northern District of California.<\/p>\n

Apple shares moved down about 3.4% on news of the decision, knocking $87 billion off the company\u2019s market value. Shares of Alphabet Inc, which operates an app store for Android smartphones, reversed an earlier gain and were last down 0.8%.<\/p>\n

Shares of videogame makers that offer their games on Apple\u2019s app store rallied. Zynga surged 8%, while Electronic Arts and Activision Blizzard each rose over 2%.<\/p>\n

The decision strikes down a core part of Apple\u2019s App Store rules, which prohibit developers from telling users about other places they can go to pay the developer directly rather than using Apple\u2019s payment mechanisms. Gonzalez Rogers issued a nationwide order that allows developers to put into their apps \u201cbuttons, external links, or other calls to action that direct customers to purchasing mechanisms.\u201d<\/p>\n

But Gonzalez Rogers stopped short of granting Epic some of its other wishes, such as forcing Apple to open the iPhone up to third-party app stores.<\/p>\n

Apple said in a statement: \u201cAs the Court recognized \u2018success is not illegal. Apple faces rigorous competition in every segment in which we do business, and we believe customers and developers choose us because our products and services are the best in the world.\u201d<\/p>\n

The orders are similar to a move that Apple made last week to conclude an investigation by the Japan Fair Trade Commission in which Apple said it would allow such \u201creader\u201d apps like Netflix Inc to provide a link to customers to sign up for a paid account outside of the app, skipping Apple\u2019s commission.<\/p>\n

Last week, analysts estimated that the JFTC settlement would shave off only 1% to 2% of Apple\u2019s profit because \u201creader\u201d apps are a small part of the company\u2019s App Store revenue. But games are a much larger portion.<\/p>\n

\u201cWhile reader apps collectively make up just 14% of (the past 12 months\u2019) App Store developer revenue, Gaming apps are the App Store cash cow, accounting for 63% of developer revenue\u201d over the past year, Morgan Stanley analyst Katy Huberty wrote in a note.<\/p>\n

The judge ruled Epic failed to demonstrate Apple is an illegal monopolist, but did show the smartphone giant engaged in \u201canticompetitive conduct\u201d under California laws.<\/p>\n

The judge issued a nationwide injunction blocking Apple \u201canti-steering provisions\u201d \u2014 rules that limit app developers from pointing users outside of Apple\u2019s ecosystem.<\/p>\n

The judge said these rules \u201chide critical information from consumers and illegally stifle consumer choice.\u201d<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

(Reuters) – A U.S. judge on Friday issued a ruling in \u201cFortnite\u201d creator Epic Games\u2019 antitrust lawsuit against Apple Inc\u2019s App Store, striking down some […]<\/p>\n","protected":false},"author":3,"featured_media":121203,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\nU.S. judge in 'Fortnite' case strikes down Apple's in-app payment restrictions - Fin2me<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fin2me.com\/markets\/u-s-judge-in-fortnite-case-strikes-down-apples-in-app-payment-restrictions\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"U.S. judge in 'Fortnite' case strikes down Apple's in-app payment restrictions - Fin2me\" \/>\n<meta property=\"og:description\" content=\"(Reuters) – A U.S. judge on Friday issued a ruling in \u201cFortnite\u201d creator Epic Games\u2019 antitrust lawsuit against Apple Inc\u2019s App Store, striking down some [...]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/fin2me.com\/markets\/u-s-judge-in-fortnite-case-strikes-down-apples-in-app-payment-restrictions\/\" \/>\n<meta property=\"og:site_name\" content=\"Fin2me\" \/>\n<meta property=\"article:published_time\" content=\"2021-09-10T17:07:44+00:00\" \/>\n<meta name=\"author\" content=\"Mark\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/fin2me.com\/wp-content\/uploads\/2021\/09\/U.S.-judge-in-Fortnite-case-strikes-down-Apples-in-app-payment-restrictions.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mark\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/fin2me.com\/markets\/u-s-judge-in-fortnite-case-strikes-down-apples-in-app-payment-restrictions\/\",\"url\":\"https:\/\/fin2me.com\/markets\/u-s-judge-in-fortnite-case-strikes-down-apples-in-app-payment-restrictions\/\",\"name\":\"U.S. judge in 'Fortnite' case strikes down Apple's in-app payment restrictions - 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