The facts: U.S. Federal Judge and Epic Games Challenge Whether Apple has complied with the The Order to Allow Payment Steering

May 23, 2024

Hearings on the evidence are scheduled for the Epic Games v. Apple case. The judge will look into the question of whether Apple has truly complied to U.S. District Judge Yvonne Gonzalez Rogers ruling that gave developers of apps to "steer" users towards alternatives to payment methods outside of the local App Store.

Hearings regarding the evidence for Apple's compliance to the laws began on May 8th. AP says that the judge Gonzalez Rogers " questioned whether Apple had set up various unneeded obstructions which hinder the ability to accept alternative payment options in iPhone apps," in defiance of the judge's instructions.

Discussions have focused on the question of Apple Policy is still anti-steering.

The AP report also reveals the reality that Gonzalez Rogers' tone suggested the policy of Apple has mainly concerned ensuring Apple's profit margins are protected instead of ensuring it is conforming to the goal of the decision she made to let steering, and increase iPhone users' ability to switch easily to different methods of payment within the app. As per the Epic Documents, Apple is still blocking users from redirecting them to alternatives to payment methods that offer lower cost alternative options.

The AP report continues to say that in the course of the hearing Apple Director of the iPhone App Store, Matthew Fischer announced that Apple had received and approved applications from 38 apps that provide access to payment processors' websites "a fraction of the approximately two million iPhone applications available in the U.S."

PC Mag points out that it is a small proportion of apps 38 of the 65,000 app developers who allow purchasing of items in-app - the reason is probably costs which is 27 percent Apple costs and the cost associated with credit card fees could cause higher costs to app developers. applications.

HTML0 Apple Executive 'Unaware' of the issue of cost increases

The LAW360 story that ran on the 10th of May, Friday describes the day's events which included Epic Legal Counsel Yonatan Even and the judge of the court Gonzalez Rogers questioned Apple Finance Vice President Alex Roman. Judge Rogers also highlighted the less expensive rate of 3% offered by Apple that includes 27% on transactions in apps that aren't accessible on Apple devices compared to the standard $30 application fee. Epic has provided evidence that the cost for payment processing throughout the U.S. is 3.5% and a yoga app CEO stated that users are charged 3.5 percent, up to 6.5 percent in charges in order to pay. Then, Roman declared that he wasn't aware of this fact, Even reiterated that the purpose was to determine an amount which would enable the users to afford reasonable costs. He demanded Roman whether he was aware about the implications was behind this was. Judge Gonzalez Rogers is quoted as declaring to Roman that "'It appears that you took numerous decisions without the benefit of information",' she added. "It appears to me that your goal was to secure ... you income prior to.'" Access to the LAW360 report here.

Pleased to See the Judge's Perspective using Epic

Director of Operations David Nachman states that "We're delighted to know that the judge has sided against Epic concerning the disagreement. We're hoping the court will require Apple to allow steering available to app and game developers, at no cost but with restrictions.  Our goal is to make it easier for everyone to participate in the market by leveraging companies that are software and digital. we're with our customers to take pride in this first step toward open-source commerce in the future of mobile."

Further Antitrust Case Against Apple launched by US Justice Department

As part of that Epic Games matter The U.S. Justice Department has also started an antitrust suit against Apple in the March period of 2024 where it asserts that Apple has the sole monopoly of the smartphones market which includes (among many other things) regarding electronic payments.

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