California Court Ruling: Apple’s Tight Control Over In-App Payments Violates State Laws

According to reports, a court in California has ruled that Apple has violated state competition laws because it prohibits application developers from using methods other than their own in app payments, including a 30% commission. This ruling may clear the way for cryptocurrency and NFT projects to add more features to their iOS applications. If Apple does not appeal this ruling, it may benefit the creators of cryptocurrency and NFT token applications as they are not affected by Apple’s 30% “tax”. （cointelegraph）

The California court’s ruling on Apple may clear the way for cryptocurrency and NFT projects to be used in IOS applications

As reported recently, a California court has ruled that Apple has violated state competition laws by prohibiting application developers from using payment methods other than its own, which includes a 30% commission. This ruling is seen as a major breakthrough for cryptocurrency and NFT projects, which can now add more features to their iOS applications without being impacted by Apple’s 30% “tax.”

The Background Story

For years, Apple has maintained tight control over its App Store, and with that control comes the company’s ability to determine the rules for developers who make applications for those platforms. As per the previous rules, app developers were required to use Apple’s proprietary in-app payment system, which included a commission of up to 30%. This rule has been a major bone of contention between Apple and developers.
In response to this concern, a group of developers, including Epic Games, Spotify, and Match Group, sued Apple for maintaining a virtual monopoly over iOS app distribution and in-app payments, forcing market participants to pay a “tax” on billions of dollars in app purchases each year.

The California Court’s Ruling

In a landmark ruling, Judge Yvonne Gonzalez Rogers of the U.S. District Court for the Northern District of California ruled that Apple’s tight control over in-app payments violated state competition laws, and app developers must not be barred from communicating with their customers via their apps for commercial purposes.
According to the ruling, Cupertino, California-based company is “hereby restrained and enjoined from prohibiting developers from (i) including in their apps and their metadata buttons, external links, or other calls to action that direct customers to purchasing mechanisms, in addition to In-App Purchasing and (ii) communicating with customers through points of contact obtained voluntarily from customers through account registration within the app.”

What This Means for Cryptocurrency and NFT Projects

The California court’s ruling may have a significant impact on cryptocurrency and NFT projects that use iOS apps to execute payments. These projects typically operate on decentralized blockchains and bypass traditional financial intermediaries like banks, but up until now, they have been subject to Apple’s commission rule.
But now, this ruling opens up a new era of possibilities for these projects, as the companies behind NFTs and cryptocurrencies may soon be able to include other payment methods in their iOS apps. For instance, cryptocurrency exchanges do not require the use of in-app purchases and could now offer more features and payments without the burden of Apple’s 30% commission.

Conclusion

The court’s ruling in California is being considered a significant victory for developers who have long complained about Apple’s strict rules and commission practices. This ruling has the power to shift the playing field, opening up many more possibilities for new and innovative companies seeking to establish their footprint in the market. Cryptocurrency and NFT projects are expected to be among the first to benefit from this ruling, and it will be interesting to see how these projects evolve as a result.

FAQs

Q. Why did Apple’s tight control over in-app payments become a court issue?
A. Apple’s strict rules and practices came under court scrutiny after a group of developers, including Epic Games, Spotify, and Match Group, sued the company for maintaining a virtual monopoly over iOS app distribution and in-app payments, forcing market participants to pay a “tax” on billions of dollars in app purchases each year.
Q. Can cryptocurrency and NFT projects offer more features for their iOS apps now?
A. Yes, they can. The court’s ruling opens up a new era of possibilities for cryptocurrency and NFT projects, allowing them to include other payment methods in their iOS apps.
Q. Why is the California court’s ruling considered a victory?
A. The court’s ruling is being considered a significant victory for developers who have long complained about Apple’s strict rules and commission practices, as it has the power to shift the playing field, opening up many more possibilities for new and innovative companies seeking to establish their footprint in the market.