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Apple to Allow Crypto Payments Following a Court Ruling in its Lawsuit with Epic Games
Notably, the tech giant has been in a long-lasting legal battle with Epic Games with the gaming developer challenging Apple’s practices. The court ruling is set to open new doors for developers building on iOS. It will also boost adoption of crypto in one of the world’s tech ecosystems
U.S Federal Judge Orders Apple to Allow Crypto Payments
In a significant development in the Epic Games vs Apple lawsuit, Judge Yvonne Gonzalez Rogers has ordered Apple to lift its restrictions preventing developers from linking external options on the Apple Store. According to the official court document, Epic Games challenged the firm’s restrictive policies back in 2020 terming them as anti-competitive practices
By 2021, the court had ordered Apple through an injunction to drop the restrictions. But Apple proceeded to limit users through complex redirect and warning screens. These features made sure that users opted for in-app payment options discouraging to the off-app options which were complicated or ineffective. Furthermore, Apple was gaining 30% commission on all transactions via the in-app options hence raising monopoly concerns
“After trial, the Court found that Apple’s 30 percent commission ‘allowed it to reap supercompetitive operating margins’ and was not tied to the value of its intellectual property, and thus, was anticompetitive,” the Judge concluded
With the court ruling determining that Apple’s practices are unacceptable, the tech giant is expected to eliminate any barriers preventing developers from adding new payment options. Additionally, the firm is not allowed to charge any fees or commission for off-app payments
“The Court enjoins Apple from implementing its new anticompetitive acts to avoid compliance with the Injunction. Effective immediately Apple will no longer impede developers’ ability to communicate with users nor will they levy or impose a new commission on off-app purchases,” Judge Yvonne wrote
Apple Responds by Updating it App Store Guidelines
Following the injunction by the federal judge, Apple has since updated its App Store Guidelines to allow developers to link external payment methods. This comes as a big win for crypto as it could drive massive adoption
Phil Kwok, a crypto entrepreneur and co-founder of EasyA App and EasyA Labs, confirmed the updated App Store guidelines. According to him, this move is big as the EasyA Labs’ applications have previously encountered barriers instituted by the tech giant
“Just got this email from apple. Finally allowing crypto for in-app purchases. This is big. I can’t tell you the number of times our app’s been flagged for compliance,” Phil wrote on X
The new change opens doors to new crypto applications that struggled under Apple’s anti-competitive measures. iOS-based applications will now accept off-app payments in cryptocurrencies. Users will also be able to browse of purchase NFTs off-app, although it is subject to KYC verification