A US Court of Appeals panel on Tuesday denied Apple’s emergency application to halt changes to its App Store, allowing developers like Amazon and Spotify to update their apps without paying Apple’s commission fees.
Key Changes
- Commission Fees: Apple can no longer charge a commission on payment links inside its apps or dictate how those links should appear.
- Impact on Developers: This ruling affects companies using third-party payment buttons within iOS applications, including Netflix and Disney+.
Background
Apple requested a pause after US District Judge Yvonne Gonzalez Rogers ordered compliance with her previous ruling regarding payments made through third-party buttons. The judge emphasized that defendants must comply immediately with her orders.
In denying Apple’s application, the appeals court stated:
"After reviewing relevant factors, we are not persuaded that stay is appropriate."
The court also noted that Apple must demonstrate that circumstances justify a stay.
Judge Gonzalez Rogers previously remarked:
"The district court did not abuse her discretion when denying defendants’ motion for reconsideration."
She further stated:
"Defendants cannot be permitted simply because they do not like what I ordered them (and others) to do years ago—i.e., allow consumers who wish to choose whether they want to pay outside in-apps or use In-App Purchases (‘IAP’). That is all I am ordering here."
Developer Responses
- Amazon: Announced plans to begin using external payment links in its app starting next week.
- Spotify: Plans to add external payment options in its app this year after testing these options since 2020, which had been delayed due to an injunction from Judge Gonzalez Rogers in 2021.
- Netflix: Allowed users in South Korea and other countries outside North America to purchase content outside iOS apps several years ago but ceased after being sued by Epic Games Inc. for unfair competition.
- Disney+: Started allowing users to purchase content outside iOS apps last year.
This ruling marks a significant shift in how developers can manage payments within their apps on Apple’s platform.
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