Apple’s annual loss of billions of dollars

ccording to Bloomberg, a world’s richest company like Apple can completely cope with this ruling. However, the greater risk they face is being declared a monopoly under state or federal law. How much Apple loses depends on how many developers want to bypass their payment system. Analyst Gene Munster predicts “missing apples” could lose between $ 1 and 4 billion. the judge sided with Apple. “This is not a win for developers or consumers,” CEO Tim Sweeney said on Twitter. Earlier this month, Apple decided to allow developers of applications such as Netflix, Spotify, news applications, books … to guide users to use external shopping methods. However, the court’s ruling means the rule must apply to all games and other categories of apps. According to Apple, it is too early to determine when or how to enforce the change and the company should discuss it with a judge.

They will also engage in dialogue with developers about the change. Games account for about 70% of the total App Store revenue, although the number of users accounts for less than 10%. These people help offset more than 80% of App Store accounts that generate no revenue at all. According to estimates by Sensor Tower, Apple makes about $3.8 billion from games in 2020, most of which comes from in-app purchases. A few billion dollars is not a big loss for Apple. In fiscal year 2021, the iPhone maker is estimated to have more than $360 billion in revenue. Many developers can stick with Apple’s payment system so that they don’t have to build their own payment platform.

The judge also did not force Apple to change fees or allow third-party app marketplaces to be present on the platform. Apple must allow developers to communicate with customers through information they voluntarily register. The decision in the Epic Games case applies only to the US, even though previous App Store changes related to communication or reading apps were designed to be global. In addition, Epic Games’ Fortnite game may return to the App Store after the judge’s ruling. However, the ruling seems to mean that users can shop through the web instead of through an in-app payment system. It means Epic needs to build a website for users to shop and link to the website in the game Fortnite to comply with regulations. According to Mr. Sweeney, Epic does not want that, but wants a built-in payment system, not via the web. He said Epic will continue to fight for fair competition between in-app payment methods and the app marketplace for its 1 billion users. The company is still analyzing the judge’s 180-page ruling. Du Lam (According to Bloomberg)

With the ruling just made, the developer will have the right to use their own payment methods. The order will go into effect after 90 days, meaning Apple has until December 9 to adjust App Store policies.

Despite finding that Apple was “engaging in anti-competitive practices under California’s competition law”, the court also found that Apple could not be construed as a monopolist, due to Epic Games’ evidence. presented is not convincing enough. “While the Court finds that Apple has a substantial market share above 55% and high profit margins, these factors alone do not indicate antitrust behavior. Success is not illegal.” written judgment.

Epic Games also had to compensate Apple for damages equal to 30% of the $12,167,719 in revenue Epic Games collected from users in the Fortnite iOS app through its direct payment option from May. August 2020 through October 2020, plus 30% of any revenue collected by Epic Games from November 1, 2020 through Judgment Day, plus interest. This is the result of Epic Games arbitrarily adding its own payment method to the game Fortnite last August, thereby violating Apple’s developer terms.