Apple has filed a petition with the U.S. Supreme Court to appeal a ruling that could force the company to change its payment practices in the App Store. The ruling, issued by the 9th U.S. Circuit Court of Appeals on Friday, kept in place most of an order issued in 2021 by U.S. District Judge Yvonne Gonzalez Rogers. The order requires Apple to allow developers to use alternative payment methods in their apps, which could cut into Apple’s revenue from the App Store.
Apple is seeking a review by the Supreme Court, arguing that the ruling would harm consumers and stifle innovation. The company says that the alternative payment methods would be less secure and would make it more difficult for users to manage their subscriptions. Apple also argues that the ruling would violate its First Amendment rights by forcing it to allow developers to use its platform to promote competing payment methods.
The judge’s order said Apple could not prohibit developers from providing links and buttons to payment options in their apps that take consumers outside of the App Store – a step that could reduce sales commissions paid to Apple.
Apple’s attorneys in Monday’s filing said the 9th Circuit reached too far in issuing a nationwide injunction against Apple alleging that it violated a California state unfair competition law.
Apple said its petition in the Supreme Court that it will raise “far-reaching and important” questions about the power of judges to issue broad injunctions.
MacDailyNews Take: This is akin to a judge issuing an injunction that forces Best Buy and Target to place signs next to each product that advertise lower prices for the same items at Walmart.
Regardless of whether the Supreme Court takes up the case and rules against Apple, if developers like Epic Games want to advertise lower prices using Apple’s App Store, Apple should simply begin charging an In-Store Advertising fee, because that’s exactly what it would be.
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