Court orders Apple to keep web links in the App Store, eroding its iOS payment monopoly

Apple has been ordered to continue permitting web links and external payment options in the App Store after its bid to halt court’s ruling was declined today by a higher court.

Earlier this year, in April, a federal judge decreed that Apple must allow developers to include web links in their iOS apps, remove restrictions on link formatting, and enable external payment methods without taking a commission on transactions. Apple immediately appealed and sought an injunction to delay implementation of the order while the case progressed.

However, the United States Court of Appeals has now refused Apple’s emergency request to stay the district court’s order. In its decision, the panel held that Apple had not demonstrated a sufficient likelihood of success on appeal, nor that it would suffer irreparable harm if the order were enforced. The court also considered potential prejudice to other parties and the public interest, concluding that an immediate suspension was not warranted. This ruling makes it much harder for Apple to overturn the April decision, which came from a lawsuit initiated by Epic Games.

Epic first sued Apple’s App Store policies in 2020, claiming that the company’s restrictions harmed competition. While Epic did not prevail on every count, the court did rule that Apple must allow developers to inform users of alternative purchasing options at better prices. Despite that narrow victory, Apple repeatedly failed to conform to the terms from the original 2021 ruling, prompting the judge in April to issue a more detailed order outlining precisely how the App Store must be “opened up”.

In response to the April ruling, prominent third-party apps have swiftly implemented web-based purchasing links. Both Spotify and Amazon’s Kindle app now include buttons directing users to purchase subscriptions via their websites, bypassing Apple’s in-app payments. Additionally, Fortnite has made a comeback on iOS after around five years, presenting users with the choice between Apple’s in-app payment system and Epic’s own payment and rewards mechanism. According to Epic CEO Tim Sweeney, there is presently a 60:40 split in usage favouring Apple’s system over Epic’s, though the gap appears to be narrowing.

An Apple spokesperson, Olivia Dalton, issued a statement expressing the company’s disappointment:

We are disappointed with the decision not to stay the district court’s order, and we will continue to argue our case during the appeals process. As we have said before, we strongly disagree with the district court’s opinion. Our goal is to ensure that the App Store remains an outstanding opportunity for developers and a safe, trusted experience for our users.

For now, Apple must comply with the existing injunction. Unless the Appeals Court later overturns the ruling, developers can continue to include web payment links, and Apple’s longstanding monopoly over iOS payment processing may continue to erode. The ultimate resolution will depend on the outcome of the ongoing appeals, which could set a significant precedent for how app marketplaces operate in the future.

Source: The Verge

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