In one of the most highly anticipated rulings facing big tech, Apple’s been told by a judge to change how it operates its lucrative App Store.
Apple was ordered to allow developers to steer consumers to outside payment methods for mobile apps, in a ruling that is a severe blow to the iPhone maker.
A federal judge granted an injunction sought by Epic Games Friday while also ordering the game maker to pay damages to Apple for breach of contract. The order could take a big bite out of the profitability of the App Store. According to analysts the App Store takes in more than $20 billion a year with a profit margin above 75%.
The decision is a significant setback for the world’s most valuable company as it faces growing antitrust scrutiny from lawmakers and global regulators.
Apple is expected to appeal, setting the stage for the fight to carry on for at least another year and possibly make its way to the U.S. Supreme Court. Read more in our link in bio.