Apple to Appeal on App Store Changes Decision

A US appeals court paused an injunction requiring Apple to open its App Store to third-party payments. The court made its decision less than a day before the injunction was due to take effect, clearing Apple to appeal a ruling ordering the changes.

Allowing third-party payments in the App Store would have cut the commission the iPhone maker receives when users make purchases. Apple argues opening the App Store could harm consumers by reducing privacy and security. Bloomberg Intelligence analysts estimated the proposed payment policy changes could cost Apple at least $2 billion a year, less than 1% of its annual revenue.

The case against Apple was initiated by Epic Games, which accused it of violating US and Californian competition laws. Both companies are appealing elements of the previous court ruling. Apple has made some changes, allowing publishers to direct users to their own sites to purchase subscriptions, and developers to communicate directly with app users. In South Korea, Apple claims it is allowing users to pay for apps through developers’ payment systems to comply with a new law.