Apple Faces Legal Protest From Meta, Microsoft, X and Match
Four tech companies object to Apple’s new app store policies related to payment for services.
Meta Platforms, Microsoft, X and Match Group filed a legal petition protesting Apple’s app store policies, objecting to how the tech giant has complied with a federal court ruling that ordered Apple to allow alternative payment methods.
The four companies, which have some of the most popular apps on the app store, join Fortnite-maker Epic Games in protesting Apple’s plan to charge a commission for payments made outside the app store.
The briefing underscores the extent to which Apple’s rivals and other technology players intend to continue fighting to force the iPhone maker to loosen its tight controls over third-party software. Apple charges up to a 30% commission for purchases in the app store for services or one-time fees, a rate that developers say is too high. Apple has defended its right to charge the fees and said it invests in privacy and security measures that protect users.
Apple in January announced plans to allow developers to process purchases outside of its app store, but the company drew sharp criticism from software-makers when it said it would charge a 27% commission in such cases. The new policy came after the U.S. Supreme Court declined to hear appeals of a 2021 ruling that ordered Apple to allow software-makers to direct users to alternate ways to pay for services or apps outside the app store. Some of those alternatives are cheaper for consumers.
Earlier this month, Epic filed a petition in the Northern California District Court asking U.S. District Judge Yvonne Gonzalez Rogers, who oversaw the 2021 case, to enforce her decision. Judge Rogers has previously said she would be watching how Apple complies with her order and could decide at some point to amend her ruling.
“The Apple Plan comports with neither the letter nor the spirit of this Court’s mandate," the four companies say in the joint amicus briefing filed on Wednesday.
The briefing from the four companies argues that Apple’s response essentially leaves in place the existing rule that makes it difficult for software makers to steer users to alternative options. It also says that it places new restrictions on app developers.
Apple is drawing similar criticism regarding its compliance with a new European law, called the Digital Markets Act. The law is intended to force Apple and other tech platforms European officials deem gatekeepers to open their closed software ecosystems. Apple’s compliance plan it rolled out this month was a complex web of new fees and restrictions for any app developer opting to choose the new policy. Most developers criticized Apple’s European policies as not practical.
Write to Aaron Tilley at aaron.tilley@wsj.com and Bradley Olson at bradley.olson@wsj.com
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