Apple must ease App Store payment rules, US judge orders in blow to iPhone maker

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:A U.S. federal judge struck down a core part of Apple Inc's App Store rules on Friday, forcing the company to allow developers to send their users to other payment systems in a win for 'Fortnite' creator Epic Games and other app makers. The ruling vastly expands a concession that Apple made with Japanese r

:A U.S. federal judge struck down a core part of Apple Inc's App Store rules on Friday, forcing the company to allow developers to send their users to other payment systems in a win for"Fortnite" creator Epic Games and other app makers.

The ruling comes after a three-week trial in May before Judge Yvonne Gonzalez Rogers of the U.S. District Court for the Northern District of California. But Gonzalez Rogers stopped short of granting Epic some of its other wishes, such as forcing Apple to open the iPhone up to third-party app stores. Shares of videogame makers that offer their games on Apple's app store rallied. Zynga Inc surged 8.6per cent, while Electronic Arts Inc and Activision Blizzard both rose nearly 3per cent.The orders are similar to a move that Apple made last week to conclude an investigation by the Japan Fair Trade Commission. Under that agreement, Apple eased its rules for"reader" apps like Netflix Inc to provide a link to customers to sign up for a paid account outside of the app.

But the precise financial impact to Apple is difficult to gauge immediately. On the one hand, only game makers like Epic with a well-known brand such as"Fortnite" can entice users to go through the extra steps of signing up to pay outside an app. At the same time, those large brands bring in the majority of Apple's game-related revenue.

 

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