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US Supreme Court Delays Change in Apple App Store Policies, Impacting Cryptocurrency Application Creators

Sat, 12 Aug 2023, 03:05 am UTC

Hopes of cryptocurrency application developers for a shift in Apple's App Store policies were dashed as the United States Supreme Court decided to postpone the allowance of apps directing users to non-Apple payment systems.

The decision, issued on August 9 by Justice Elena Kagan, halted the swift implementation of a previous federal appeals court ruling that Epic Games and others had anticipated. Curiously, no explanation accompanied this decision.

In April, the Ninth Circuit Court of Appeals had deemed Apple's restriction, which prevented apps from guiding users to payment alternatives not affiliated with Apple, as in violation of California's antitrust laws. Immediate implementation of this ruling would have granted developers like Epic Games the ability to lead users to different payment avenues, thereby sidestepping Apple's customary 30% fee on in-app transactions.

This fee has proven a significant hurdle for various cryptocurrency entities, particularly those wishing to introduce the option of purchasing non-fungible tokens (NFTs) for iOS users. Presently, buying an NFT through an Apple App Store application necessitates using Apple's in-app purchase system. This results in both a 30% charge and confines purchases to traditional currencies. Direct cryptocurrency transactions for in-app benefits or other purchases remain prohibited under Apple's existing guidelines. As a result, many cryptocurrency-focused apps are limited to offering basic features such as checking asset balances, while apps for cryptocurrency exchanges remain unaffected.

Justice Kagan's decision to delay the immediate effect of the ruling grants Apple temporary relief, as the tech company readies to challenge the ruling in the Supreme Court. If the Supreme Court rejects Apple's appeal, the Ninth Circuit's decision will be enacted.

Epic contested the continuation of the appeals court's stay, asserting that it employed a lenient legal criterion that would detrimentally affect them, as well as numerous other consumers and app developers. In response, Apple pointed out that the stay had been in place for two years and was unrelated to Epic's case, referring to the removal of Epic's Fortnite from the App Store in 2020 due to payment system conflicts.

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