Judge orders Apple to remove hefty fee on off-app purchases
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Apple must stop levying 27% commissions on sales that take place when apps point users to websites beyond Apple's App Store, a federal judge ordered Wednesday.
The intrigue: In a scorching ruling that called Apple's response to a previous order "an obvious cover-up," Judge Yvonne Gonzalez Rogers also referred Apple's behavior to federal prosecutors to investigate whether to bring criminal contempt of court charges.
Catch up quick: The ruling comes as part of the long legal fight between Epic Games and Apple over Apple's control of the App Store.
- The court originally ruled mostly in favor of Apple, but ordered the iPhone maker to allow app makers like Epic to send users "off-app" to conduct business via channels that wouldn't be subject to Apple's 30% commission.
- Apple's response — after losing an appeal — was to allow such transactions but add a new 27% fee on them.
The big picture: Apple earns significant revenue from its App Store fees.
- While users may find it less convenient to conduct business with app makers via websites rather than inside apps, doing so could save everyone a lot of money, and hurt Apple's bottom line.
The other side: Apple has argued that its App Store fees fund the store's operations and support Apple's efforts to vet apps and keep its customers secure and safe.
- "We strongly disagree with the decision. We will comply with the court's order and we will appeal," Apple said in a statement.
Read the full ruling that The Verge obtained, via DocumentCloud:
