Apple Faces Severe App Store Overhaul After Judge Rules on Epic Games v. Apple

Apple has been found in contempt of court for its handling of the 2021 Epic Games v. Apple ruling. The judge, Yvonne Gonzalez Rogers, has ordered significant changes to Apple's App Store model, directly impacting its revenue stream. The original ruling, while seemingly favorable to Apple, allowed for considerable interpretation, which the company exploited to maintain its control over in-app purchases and associated commissions.

Apple's longstanding policy mandates all iOS in-app purchases be processed through the App Store, generating a commission of up to 30%. Epic Games challenged this by directing Fortnite players to an external website for purchases, bypassing Apple's commission. This led to Fortnite's removal from the App Store and the subsequent lawsuit.

Judge Gonzalez Rogers has now determined that Apple deliberately circumvented the 2021 injunction by imposing commissions on out-of-app purchases. Internal Apple documents, including communications from Phillip Schiller and Tim Cook, reveal a conscious decision to interpret the ruling in a manner that minimized its impact. Further, Apple's VP of Finance, Alex Roman, is accused of perjury.

The court's new order mandates several key changes:

• Commission-free out-of-app purchases: Apple must allow developers to direct users to external purchase links without paying a commission.
• Link placement freedom: Developers can place these links anywhere within their apps, free from Apple's previous restrictions.
• Styling flexibility: Apple can no longer dictate the style or formatting of out-of-app purchase links.
• Promotional allowances: Promotional elements, like discount banners, encouraging external purchases are now permitted.

Apple faces potential criminal contempt charges and is under investigation by the U.S. Attorney for the Northern District of California. While Apple can display a neutral message informing users they are leaving the App Store, this message cannot be manipulative or discouraging.

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PostsThe judge has demanded immediate implementation of these changes. Apple claims it will comply while simultaneously filing an appeal. The true test will be whether Apple acts in good faith. Epic Games plans to relaunch Fortnite on the iOS App Store next week, providing a crucial benchmark for Apple's compliance. The possibility of Fortnite's arbitrary blockage remains a concern.

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