Crypto Application Developer Hampered By Apple App Store Suspension Decision

JAKARTA - Developers of crypto apps hoping to loosen Apple's App Store rules will still have to wait longer after the United States Supreme Court delays in granting approval to allow apps to direct users to payments outside Apple's ecosystem.

Justice Elena Kagan's decision on August 9 refused to immediately impose a federal appeals court decision as requested by Epic Games, without explanation of the decision.

In April, the Ninth Circle Court of Appeals ruled that Apple violated California's competition law by not allowing apps to direct users to payment solutions unrelated to Apple.

This ruling means that developers like Epic Games will be able to direct users to alternative payment methods, giving them a 30% tax avoiding option from Apple on in-app payments.

Apple's 30% taxes are also an obstacle for crypto companies, including those that want to offer iOS users the ability to buy non-fungible tokens (NFTs) that are not connected to Apple.

Currently, there is no way to buy NFT in apps listed on Apple's App Store other than through its own in-app payment system, which charges 30% commission fees and only allows purchases using fiat currencies.

Apple's guidelines do not allow apps to accept crypto to open app functionality or make in-app purchases using crypto.

This has led most crypto apps to offer only limited functions, such as being able to see only balances and assets. Crypto exchange apps are unaffected.

Justice Kagan's rejection of Epic's request means Apple will get at least a few months left to postpone the decision as Apple plans an appeal to the Supreme Court over the decision.

The decision of the Ninth Circle Court will not apply if the Supreme Court rejects Apple's appeal.

In his argument of lifting the appeal court suspension, Epic claims that loose legal standards applied in imposing the suspension would be detrimental to Epic and "uncountable consumers and other app developers for a significant period of time."

Apple responded by saying that the suspension had been in effect for two years and was not valid for Epic at all. Apple removed Epic's Fortnite from the App Store in August 2020 for trying to avoid the in-app payment system Apple.