Supreme Court Halts Immediate Changes to Apple's 30% App Store Tax Rule

The US Supreme Court recently delivered a verdict that may have disappointed several cryptocurrency and non-fungible token (NFT) app developers.

Apple's App Store policies, which impose a 30% tax on in-app purchases, will remain in place for the foreseeable future.

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

What is Ethereum 2.0? Upgrades Easily Explained With Animations

SUBSCRIBE

ON YOUTUBE

Justice Elena Kagan, on August 9th, decided against an immediate application of a federal appeals court decision that Epic Games had urged. Intriguingly, the reasons for the decision were left unstated.

Earlier in the year, the Court of Appeals for the Ninth Circuit declared that Apple's restriction, which prevents apps from steering users towards non-Apple payment solutions, infringes California's competition laws. This ruling would have been a game-changer, enabling developers like Epic Games to bypass Apple's 30% commission by guiding users to alternate payment routes.

The ramifications of the 30% commission are evident in the crypto domain, especially concerning non-fungible tokens (NFTs). Currently, Apple's App Store only permits NFT purchases via its in-app payment system, which levies the 30% fee and solely supports fiat transactions.

Consequently, Apple's rules prohibit apps from enabling crypto functionalities or in-app crypto purchases. Therefore, most crypto apps on the App Store can only offer basic features like viewing balances and assets, though crypto exchange apps remain unaffected.

The refusal of Justice Kagan to grant Epic's plea implies Apple will enjoy a brief respite from this ruling as it prepares to challenge the decision at the Supreme Court level. Should the Supreme Court dismiss Apple's appeal, the Ninth Circuit's order will be activated.

In its plea, Epic contended that the appeals court's stay was based on a “lax legal standard” and argued that its continuation would harm Epic, consumers, and various app developers. Apple countered by pointing out that this stay has persisted for two years and doesn't concern Epic directly.

The standoff between app developers and Apple will continue, with the latter's 30% commission rule proving to be a significant point of contention. Following the new ruling, the crypto and NFT communities will be closely monitoring subsequent developments.