Latest News U.S. Federal Judge and Epic Games Contest Whether Apple is in compliance with An Order allowing Payment Steering (PS)

A hearing on the facts of the Epic Games v. Apple case will be examining the issue of whether Apple is in fact complying with U.S. District Judge Yvonne Gonzalez Rogers' order to allow developers of apps in the hope of being able to "steer" users to third-party payment options outside of the app's native App Store.

Hearings on the evidence of Apple's compliance with the law began on Wednesday, May 8. AP says that judge Gonzalez Rogers " questioned whether Apple had set an array of unnecessary hurdles to hinder making use of different payment methods for iPhone applications" regardless of the court's directive.

HTML0 Hearing focused on whether Apple Policy is Still Anti-Steering

The AP article also explains the judge Gonzalez Rogers' tone suggested Apple's actions were focused on protecting Apple's own profits instead of ensuring it conforms to the purpose of her decision to let the steering of payments and improve iPhone users' capability to quickly switch to various available payment methods in-app. The report explains that, in the Epic document, Apple is still blocking users from steering them towards other payment methods with lower cost options.

The AP article continues that in the proceedings in the course of the hearing Apple Chief Executive Officer of the iPhone App Store, Matthew Fischer stated that Apple had only accepted permission for the application of 38 applications to show links to other payment systems, "a fraction of the about 2 million iPhone apps accessible in the U.S."

PC Mag points out that the number of apps -- 38 out of 65,000 app creators which offer in-app purchases -- is most likely because of cost such as the 27% Apple fee and the additional expense of credit card fee may result in an increase in total costs for app developers.

Apple Executive 'Unaware' of Higher Overall Cost Issue

The LAW360 piece on April 10, 2015 recounts that day's proceedings during the course of which Epic attorney Yonatan Even as well as Judge Gonzalez Rogers questioned Apple Finance Vice President Alex Roman. Even emphasized the 3% lower fee that Apple offers Apple -- 27% when transactions are made in applications that are not accessible on Apple devices, compared to the standard $30 per transaction as well as Epic added evidence to show that the fee for payment within the U.S. is 3.5% as well as a yoga app's CEO testified that he paid 3.5% to 6.5 percent in fees for the processing of payments. In the end, Roman admitted that he was not conscious of this, Even reiterated that the purpose was to establish an amount that allowed the developers to offer users a lower cost. They demanded Roman to elaborate on what he thought he knew regarding the matter. Judge Gonzalez Rogers is quoted as saying to Roman that "'It sounds like you all have a tendency to take choices without any facts or data or data,' she said. "It seems to me like it was intended to protect ... the revenue that you've had previously.'" Access the LAW360 article here.

HTML0 We're happy to see The Judge's View with Epic

Chief Executive Chief Executive Officer David Nachman states that "We're delighted to have the judge supporting Epic in this case We're confident that the court will oblige Apple to permit steering for game and application developers with no fees or restrictions. Epic's aim is to open up the world market for software and digital product companies, and we're joined by our customers to rejoice in the progress towards free commerce on mobile."

 Additional Antitrust Protest against Apple initiated by the US Justice Department

As part of the Epic Games lawsuit in the U.S. Justice Department case U.S. Justice Department launched an antitrust suit against Apple in the month of March in 2024 and declared that Apple is the sole monopoly in the market for mobile phones, and this includes (among several other areas) in the area of electronic payments.

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