More Details: U.S. Federal Judge and Epic Games Contest Whether Apple is complying with the court order allowing payment Steering (see below).
A hearing to consider the evidence in the Epic Games v. Apple trial will examine the issue of whether Apple really is complying the U.S. District Judge Yvonne Gonzalez Rogers' order which gave app developers the capability of being able to "steer" the users utilize additional payment methods outside of the native App Store of the app.
The hearing regarding Apple's adherence to law was scheduled for May 8. AP reports that judge Gonzalez Rogers " questioned whether Apple is putting an array of unnecessary limitations that are in place to stop users from using alternative payment options in iPhone applications" regardless of the direction of the court.
Hearing Focused on Whether Apple Policy is Still Anti-Steering
The AP report further states the judge Gonzalez Rogers' tone suggested Apple's decision-making has been focused on protecting Apple's profits and not ensuring that the implementation is consistent with her order to allow more control and improve iPhone users' ability to switch quickly between various available payment methods in the application. It also notes that, according to Epic accounts, Apple is still blocking the developers from directing consumers towards other payment methods that offer lower cost options.
The AP article goes on to say that during the proceedings, one witness, Apple Director of the iPhone App Store, Matthew Fischer stated that Apple did not accept and approved applications for 38 apps with hyperlinks to other payment methods, "a fraction of the approximately 2 million iPhone apps that are available within the U.S."
PC Mag points out that this small number from 38 of the 65,000 app developers that offer in-app purchases is caused by costs due to the 27 percent Apple cost plus the costs associated with credit card fees will probably result in a more expensive cost for developers.
HTML0 Apple Executive 'Unaware' of the Higher Costs Issue
An LAW360 story that ran on May 10 in 2015 provides details of the day's events during which Epic lawyer Yonatan Even and the judge Gonzalez Rogers questioned Apple Finance Vice President Alex Roman. Even claimed that the fee of 3% is paid by Apple and that it's 27% for transactions that require an app that is not running on Apple devices, as opposed to the typical 30 percent charge. in addition to Epic provides evidence that suggests the average cost for processing transactions across the U.S. is 3.5% along with a yoga-related CEO who testified that the company pays 3.5 percent to 6.5 per cent to process payments. In the following testimony, Roman said he was unaware of this reality. He also stressed that the goal was to establish an amount which would allow companies to offer consumers a low cost. Roman also asked Roman to explain the information he believed he had about the significance of that. The judge Gonzalez Rogers is quoted as saying to Roman that "'It appears that you had the tendency to make decisions with no data or knowledge or any kind of information' she commented. The reason for this was to protect ... your cash that you have earned over the years.'" Read the LAW360 article here.
I'm pleased to that Judge Side with Epic
The CEO David Nachman states that "We're delighted to have the judge agree with Epic in this case We're hoping that the court will be able to oblige Apple to allow steering allowed for game and application developers with no fees and no restrictions. Our goal is to make it easier for global commerce for businesses that create digital and software We're excited to join our clients in celebrating the progress of free mobile commerce."
Further Antitrust Affidavit of Apple released by US Justice Department
Additionally, Apple was as a participant in the Epic Games case, the U.S. Justice Department launched an antitrust lawsuit against Apple during the month of March 2024 where it stated it was Apple is the sole dominant company of the smartphones market. This also includes (among many other things) with regard to electronic payment.
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