How Apple's Epic Loss Could Lower App Prices GA S REGULAR Menu Lifewire Tech for Humans Newsletter! Search Close GO News > Phones

How Apple's Epic Loss Could Lower App Prices

Judge tells Cupertino to change its ways

By Sascha Brodsky Sascha Brodsky Senior Tech Reporter Macalester College Columbia University Sascha Brodsky is a freelance journalist based in New York City. His writing has appeared in The Atlantic, the Guardian, the Los Angeles Times and many other publications. lifewire's editorial guidelines Updated on September 13, 2021 12:06PM EDT Fact checked by Rich Scherr Fact checked by Rich Scherr University of Maryland Baltimore County Rich Scherr is a seasoned technology and financial journalist who spent nearly two decades as the editor of Potomac and Bay Area Tech Wire. lifewire's fact checking process Tweet Share Email Tweet Share Email Phones Mobile Phones Internet & Security Computers & Tablets Smart Life Home Theater & Entertainment Software & Apps Social Media Streaming Gaming

Key Takeaways

A federal judge said Apple could no longer prevent alternatives to its in-app payment system. The ruling could put the security of users at risk. App developers could provide lower prices to users now that their App Store fees have been reduced. d3sign / Getty Images Users might benefit from lower prices in Apple’s App Store thanks to a recent court ruling, some experts say. A federal judge on Friday said Apple could no longer prevent alternatives to its in-app payment system. The ruling lets companies avoid Apple’s commission of up to 30% on some app sales. Developers will drop prices now that their App Store fees have been reduced, predicted Joe Sandin, the CEO of app developer Onsharp. "It will create e-commerce opportunities where none existed before because app developers will now be providing more ways inside their apps for consumers to buy," he told Lifewire in an email interview.

Apple Gets Rebuked

Federal judge Yvonne Gonzalez Rogers said that Apple had violated California's Unfair Competition Law by making Fortnite and its maker, Epic Games, use Apple's payment systems on the App Store. Gonzalez Rogers issued an injunction saying Apple can no longer prohibit developers from adding links within their apps to outside payment options. Other options for payment include a subscription on a web browser, rather than through the app.
But the judge rejected the suit's other claims and said she could not conclude that the iPhone maker is a monopoly. "Given the trial record, the Court cannot ultimately conclude that Apple is a monopolist under either federal or state antitrust laws," court documents read. "Success is not illegal."

Discounts for Users

Not everyone agrees that discounts are inevitable due to the ruling. App Store prices might actually increase, David Brittain, the CEO of app developer TopHatch, told Lifewire in an email interview. "Larger developers will benefit from higher revenue, but mid and smaller developers will lose out," he said. "Those larger developers will likely cut prices initially to beat the smaller developers, but ultimately reduced competition will lead to higher prices." Anat Alon-Beck, a law professor at Case Western Reserve University who researches corporate law and entrepreneurship, told Lifewire in an email interview that the ruling doesn’t go far enough in regulating Apple’s role as both a platform manager and a competitor in the app marketplace. "Apple can offer discounts to customers to continue to use Apple infrastructure," she said. Compare Fibre / Unsplash The ruling will let developers enable small payments for apps or added features for lower prices than Apple, which had mandated that the smallest payment could be $0.99, David Finkelstein, the CEO of BDEX, a marketing data exchange, told Lifewire in an email interview. Security is another concern now that payments could go through systems not controlled by Apple, Brittain said. "Apple already struggles to keep out the bad guys with high price subscriptions for low-value features, but at least you can appeal to Apple and get refunds," he added. "If the billing is outside the store, then the security of their personal data (payment details, etc.) and privacy are at risk, and there will be no recourse to Apple." "I am concerned about privacy and security," Alon-Beck said. "My credit card was just breached this weekend, and someone has been using it to buy very expensive things. Even after I canceled the card and before I got a chance to get my new card, the hackers got hold of the new credit card info through my digital wallet." It’s not clear how consumer data can be protected under the new ruling, Alon-Beck said. "We want transactions to be quick and cheap on the one hand, and enjoy security on the other, so what's going to give?" she asked rhetorically. "Can we have it all?"
Was this page helpful? Thanks for letting us know! Get the Latest Tech News Delivered Every Day Subscribe Tell us why! Other Not enough details Hard to understand Submit More from Lifewire How Meta's New VR Headset Could Read Your Face and Bring Privacy Risks Native Apps vs. Web Apps Net Neutrality Explained How to Create an iTunes Account Without a Credit Card How to Use Apple Pay on iPhone 13 How to Create an Apple ID Without a Credit Card What Is Samsung Pay? Near Field Communication: Pros and Cons A More Open Windows Store Could Create New Challenges for Users Facial Recognition Industry Could Face a Reset Your Phone Could Soon Let You Block Access to Personal Data Apple Says It Removed 1 Million Suspicious Apps Last Year New EV Charging Rules Sound Good, but May Not Go Far Enough EU's Cyber Resilience Act Could Make Smart Devices Safer For All of Us Apple's App Store Holiday Hours Are a Gift to Everyone Quantum Computing Could Help Save the Earth… Eventually Newsletter Sign Up Newsletter Sign Up Newsletter Sign Up Newsletter Sign Up Newsletter Sign Up By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. Cookies Settings Accept All Cookies