Judge Orders Apple: Cut Exorbitant Fees on Off-App Purchases

Apple must stop levying
27% commissions
On sales occurring when applications direct users to sites outside of Apple’s App Store, a federal judge issued an order on Wednesday.

The intrigue:

In a blistering decision branding Apple’s reaction to an earlier directive as “a clear attempt at concealment,” Judge Yvonne Gonzalez Rogers additionally alerted federal prosecutors to look into potentially bringing criminal contempt of court charges against the company.

Catch up quick:

The decision arrives as part of the
long legal fight
Between Epic Games and Apple regarding Apple’s dominance over the App Store.

• The court
  originally ruled
  largely supporting Apple, yet instructed the company to permit developers such as Epic to direct users away from the app for transactions, thus avoiding Apple’s 30% fee.
• Apple’s reaction—following their loss—remained
  an appeal
  —the intention was to permit these transactions but introduce a new 27% charge on them.

The big picture:

Apple generates substantial income from charges levied through its App Store.

• Although customers might find it considerably more inconvenient to handle transactions with application developers through websites instead of within applications, this shift could result in substantial cost savings for all parties involved and potentially impact Apple’s profits negatively.

The other side:

Apple contends that the revenue from App Store transactions covers the costs of running the store and enables the company to review applications thoroughly, ensuring security and safety for its users.

Check out the complete judgment that The Verge acquired, through
DocumentCloud:

Editor’s update: This news story is developing and will be refreshed as new information becomes available.