A Supreme Court judge has denied Epic Games' request to immediately relax Apple's App Store payment rules, which could have benefited crypto and NFT applications.

The United States Supreme Court has delayed granting a request to allow apps to direct users to payments outside of Apple's ecosystem, prolonging the wait for crypto app developers expecting for a relaxation of Apple's App Store rules.

Screen Shot 2023-08-10 at 3.31.11 PM.png

Justice Elena Kagan denied Epic's request for a federal appeals court decision to take immediate effect on August 9 without providing an explanation.

The Ninth Circuit Court of Appeals ruled in April that Apple violated California's competition laws by prohibiting apps from directing users to non-Apple-linked payment solutions.

The ruling allowed developers such as Epic Games to redirect users to alternative payment methods, thereby circumventing Apple's 30 percent tax on in-app purchases.

The 30% Apple tax has also been an obstacle for crypto companies, including those that wish to offer iOS consumers the ability to purchase non-fungible tokens.

Currently, the only way to purchase an NFT on an app listed on Apple's App Store is through its in-app payments system, which charges a 30% commission and only accepts fiat currency.

Screen Shot 2023-08-10 at 3.31.24 PM.png

Apple's guidelines prohibit apps from accepting cryptocurrency to access app functionality or make in-app purchases.

This has resulted in the majority of cryptocurrency applications providing only limited functionality, such as the ability to view balances and assets. Coin exchange applications are unaffected.

As a result of Justice Kagan's denial of Epic's request, Apple will have at least a few more months of reprieve from the ruling as it prepares an appeal to the Supreme Court.

However, if Apple's appeal to the Supreme Court is denied, the Ninth Circuit's decision will be enforced.

In its argument to rescind the appeals court stay, Epic asserted that the court applied a "lax legal standard" in granting the stay, which would cause irreparable harm to Epic and "numerous consumers and other app developers for an extended period of time."

Apple responded that the injunction has been in effect for two years and does not apply to Epic anyway. In August 2020, Apple removed Epic's Fortnite from the App Store for attempting to circumvent Apple's in-app payment system.

Trade

Market

Market Analysis

Trading Tutorial

Bonus rebate to help investors grow in the trading world!