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Meta, Microsoft, and X are collaborating to oppose Apple's proposal of allowing external payment methods on its App Store
Meta Platforms Inc, Microsoft Corp, X Corp, and Match Group Inc, collectively, have requested a federal judge to reject Apple's idea of introducing external payment channels to its App Store.
Meta Platforms Inc, Microsoft Corp, X Corp, and Match Group Inc have collectively called on a federal judge to reject Apple's proposed strategy of allowing its App Store to accept outside payment methods.
In a rare joint submission, the firms contended that Apple's suggestion doesn't comply with the 2021 judgement, which determined that the iPhone maker breached California's unfair business laws. The court ordered Apple to allow app creators to guide users to their personal payment methods.
The companies pointed out parallels with the claims made by Epic Games Inc in its current antitrust conflict with Apple, arguing that Apple's strategy introduces new restrictions on app creators, which obstructs the competitive environment that the injunction intended to promote.
The collaborative submission symbolizes the most recent progression in the continuous conflict about Apple's strict regulation of its app marketplace. This marketplace is one of the most influential platforms globally, rivaling Alphabet Inc.'s Google Play.
In the previous year, a court of appeals supported the verdict made by a trial judge in Oakland in 2021, confirming that Apple's business approach breached California's legal guidelines. This is because they prohibited developers from discussing other payment methods, which could lead to increased charges for consumers. Apple charges a fee for every transaction conducted via its application store.
Both Epic and Apple had hoped for a Supreme Court assessment of the previous court decisions, but this was denied in January. Later, Apple declared their plan to let all third-party apps sold in the US have an external link to a developer's website for handling in-app purchases. However, Epic has recently claimed that Apple is in contempt of court, arguing that the company made outside links economically unviable by introducing new charges.
The proposed plan by Apple, which extends to nine pages and comprises 2,900 words, sets forth a multitude of conditions and limitations for developers who want to include an external purchase link in their applications, as per the document submitted by Meta, Microsoft, X, and Match.
Apple asserts that it is abiding by the court's decision while also protecting the confidentiality and safety of its app store users. However, it still aims to obtain a portion of the profits from developers who choose not to use the system, which can be anywhere between 12 per cent and 27 per cent.
The continuing legal dispute between Apple and several significant technology companies highlights the intricate issues related to app market regulation. It also signals the wider consequences for competition and customer options within the digital environment.
(Incorporating information from various sources)
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