A federal court in California ruled that starting in December, the tech giant cannot prevent developers from accepting alternative methods of payment in its App Store, a decision that will hurt its share of revenue from in-app transactions. (The Logic)
Talking point: The decision marks the culmination of a closely watched case between Epic Games and Apple that centred around one of App Store developers’ top complaints. Epic, the creator of hit video game Fortnite, sued Apple after it removed the game from the App Store for offering users discounts if they purchased directly from the company, bypassing Apple’s 15 to 30 per cent cut of all App Store transactions. Following the decision, Apple shares dropped roughly three per cent Friday afternoon. The legal battle between Apple and Epic likely won’t end here, however. Both sides expect the decision to be appealed, according to CNBC. Two weeks ago, South Korea became the first country to force Google and Apple to loosen restrictions on app store payments, though Apple said it still won’t allow Fortnite on its platform there.