 "Meta, Microsoft, X are teaming up to fight Apple’s plan to open up App Store to other external payment options")
Meta Platforms Inc, Microsoft Corp, X Corp, and Match Group Inc have jointly urged a federal judge to dismiss Apple’s proposed plan to open its App Store to external payment options.
In an unusual collective filing, the companies argued that Apple’s proposal fails to align with the 2021 ruling, which found the iPhone manufacturer in violation of California unfair competition laws. The ruling mandated Apple to permit app developers to direct users to their own payment systems.
Citing similarities with arguments put forth by Epic Games Inc in its ongoing antitrust battle against Apple, the companies asserted that Apple’s plan imposes new constraints on app developers, hindering the competition that the injunction aimed to foster.
The joint filing represents the latest development in the ongoing dispute over Apple’s stringent control of its app marketplace, which stands as one of the world’s predominant platforms alongside Alphabet Inc.’s Google Play.
Last year, an appeals court upheld the 2021 decision by an Oakland trial judge, affirming Apple’s business model violated California law by restricting developers from communicating about alternative payment systems, potentially resulting in higher costs for users. Apple levies a commission on every purchase made through its app store.
Despite both Epic and Apple seeking a Supreme Court review of the lower-court rulings, the high court declined in January. Apple subsequently announced its intention to allow all third-party apps sold in the US to include an external link to a developer website for processing in-app purchases. However, Epic recently accused Apple of contempt of court, alleging the company rendered outside links “commercially unusable” by imposing new fees.
Impact Shorts
More ShortsApple’s proposed plan, spanning nine pages and 2,900 words, outlines numerous requirements and restrictions for developers seeking to incorporate an external purchase link within their apps, according to the filing from Meta, Microsoft, X, and Match.
While Apple maintains it is complying with the court order while safeguarding the privacy and security of its app store users, it continues to seek a revenue share from developers who opt out of the system, ranging from 12 per cent to 27 per cent.
The ongoing legal tussle between Apple and various tech giants underscores the complexities surrounding app marketplace regulation and the broader implications for competition and consumer choice within the digital ecosystem.
(With inputs from agencies)
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