Apple legal battles - page 2

Apple changed its App Store rules late Thursday to allow third-party iPhone application developers to steer customers toward their own websites to make purchases. The move comes after a years-long delay in complying with a court order.

The alteration in the rules should result in many iPhone apps allowing customers to pay for services and subscriptions without giving Apple a cut. Streaming music service Spotify became one of the first to take advantage of this major change to the App Store. The modification gives customers more buying options, and the hope is that this will save them money.

Spotify submitted a major app update to the App Store with several significant changes Thursday. The company moved quickly to capitalize on a judge’s Wednesday ruling that requires Apple to allow external payment links in apps effective immediately.

Update: Apple quickly approved Spotify’s update. The company formally changed its App Store rules Thursday to bring them into “compliance with a United States court decision regarding buttons, external links, and other calls to action in apps.”

Apple plans to challenge the ruling, which forces major changes on the company’s handling of the App Store.

During a conference call with Wall Street analysts Thursday, Apple CEO Tim Cook said the company strongly disagrees with the judge’s ruling. “We’ve complied with the court’s order, and we’re going to appeal,” he said.

In a major blow to Cupertino, a judge ruled Wednesday that Apple “willfully chose not to comply” with a 2021 injunction that required the company to let developers include in-app links directing users to third-party payment options on the web.

“Apple’s continued attempts to interfere with competition will not be tolerated,” said U.S. District Judge Yvonne Gonzalez Rogers in the ruling.

She also found clear evidence that an Apple executive lied under oath in his court testimony, and asked U.S. attorneys to investigate whether Apple’s vice president of finance should be charged with criminal contempt of court.

The system Apple set up to enable EU residents to load apps onto their iPhones outside the App Store violates the Digital Markets Act, according to a decision handed down Wednesday by the European Commission. It cites “overly strict eligibility requirements” and Apple’s new Core Technology Fee as reasons.

It’s a preliminary decision, but if Apple doesn’t make the app sideloading process easier, the DMA gives the European Commission the right to hit the iPhone maker with hefty fines.

The European Union socked Apple with a fine of 500 million euros ($570 million) Wednesday for breaking antisteering rules in the Digital Markets Act. It also fined Meta 200 million euros for DMA violations.

The two companies face further fines if they don’t make the changes the EU demands.

The European Commission issued “guidance” Tuesday on changes it says Apple must make to comply with the interoperability requirements of the EU’s Digital Markets Act. The new mandates would open up the iPhone to work more closely with third-party smartwatches, headphones and TVs.

Apple says the new rules will undercut user privacy and slow innovation, and vows to make its case to the EU. It remains to be seen whether the changes will take effect only in Europe or globally.

Tulsi Gabbard, the new U.S. director of national intelligence (DNI), said a demand from the UK government that Apple build a backdoor to access the contents of encrypted iCloud files worldwide constitutes “a clear and egregious violation of Americans’ privacy.”

She then indicated that the UK would not be allowed to spy on Americans in this way.

Apple moved toward deactivating its Advanced Data Protection iCloud privacy-protection feature for iCloud in the United Kingdom. The move is a stopgap measure instead of giving the UK government what it demanded: a “backdoor” way to break the encryption offered by the feature so it could secretly surveil its citizens. This decision also raises concerns about iCloud deals and the implications for user privacy. Read more about the issue here.

The problem is, this move won’t fully satisfy the UK government, who wants to be able to spy on the iCloud accounts of any Apple user in any country.

The government of the United Kingdom reportedly wants a backdoor into Apple accounts so it can spy on any iPhone or Mac user anywhere. It allegedly ordered Apple to allow it to access everything from any iCloud account globally, breaking the encryption protection on the files.

Apple is fighting the order.

Apple agreed to a $95 million settlement in a class action lawsuit alleging privacy violations by its Siri voice assistant, according to a new report. The lawsuit, filed in Oakland, California federal court, claims that Apple’s virtual assistant recorded users’ private conversations without consent and shared this information with advertisers.

So, should a federal judge approve the settlement, millions of Apple device users could see small payouts (most likely less than $20 per device, given the vast number of devices running Siri).

AirDrop and AirPlay are the latest Apple technologies the European Union wants to make more interoperable. This would give third-party developers, including rival handset makers, access to the tech.

But Apple is pushing back hard. Apple has made the jaw-dropping claim that opening up AirDrop and AirPlay would allow companies like Meta (which owns Facebook, Instagram and WhatsApp) to read all your emails, messages, photos and even passwords!

Apple will reportedly stop selling the iPhone SE (3rd gen) and iPhone 14 in the EU by the end of this year. It will do this to comply with the EU’s directive, which mandates all smartphones to use USB-C for charging.

Apple only switched to USB-C on its smartphone lineup with the iPhone 15’s launch in 2023.

The United Kingdom could precipitate a significant iPhone revamp after a government report found that “Apple’s rules restrict other competitors from being able to deliver new, innovative features that could benefit consumers.”

The findings in the report are sure to inform government regulators as they enforce the U.K.’s Digital Markets, Competition and Consumers Act, which goes into effect in January 2025.

The UK consumer-advocacy group Which? accused Apple of forcing iPhone and iPad owners to use iCloud, and then overcharging them for the service.

It’s asking for a hefty £3 billion ($3.8 billion) in compensation. That’s about £70 per consumer.

A U.S. federal judge ordered sweeping changes to Google Play, the default source for Android applications. Rival Android software marketplaces will get a big boost as a result.

While the iPhone App Store is similar, Apple’s and Google’s situations are different enough that iPhone users shouldn’t expect similar changes anytime soon. Long term? That’s a different story.

The European Commission intends to require iPhone and iPad to be more open to working with third-party smartwatches, headphones, virtual reality headsets, and other accessories. On Thursday, the EC began proceedings to “specify how Apple will provide effective interoperability with functionalities such as notifications, device pairing, and connectivity.”

Apple devices already work with a broad variety of accessories, but the company also says it has to balance connectivity with protecting user privacy. For the latest updates on Apple’s compliance and upcoming changes, check out the latest iPhone news.

Apple ran out of appeals after a Tuesday ruling by the European Union’s highest court that the iPhone-maker must pay 13 billion euros ($14.3 billion) in taxes it’s owed since 2016.

It’s the final result of a scheme in which Apple tried to lower its taxes by routing European revenues through Ireland, where it was charged a lower tax rate.

Apple and the European Commission came to an agreement on opening up iPhone to rival digital wallets and tap-and-go systems. The days of the iPhone’s NFC capabilities being limited to just Apple Pay are at an end. In Europe, anyway.

But in the rest of the world, it’s Apple Pay or nothing.

Margrethe Vestager, the European Union’s commissioner for competition, said Thursday that Apple’s decision to not offer its artificial intelligence upgrades for iPhone and Mac in the European Union is an admission that the company knows the features are anticompetitive.

In contrast, Apple says interoperability requirements in EU law would make the AI features a risk to user privacy.

The European Commission said Monday that it made a preliminary decision that Apple breached the EU’s Digital Markets Act. Apple’s rules “prevent [iPhone] app developers from freely steering consumers to alternative channels for offers and content,” according to the EC.

The commission also said it started an investigation into whether Apple’s new Core Technology Fee complies with the DMA. If Apple doesn’t change its policies, the EC could levy extremely heavy fines.

Apple revealed Friday that it will not introduce in the European Union the artificial intelligence features for iPhone, Mac and iPad it recently announced. The company blamed the EU’s Digital Markets Act for the decision.

Several other new features of the upcoming macOS Sequoia, iOS 18 and iPadOS 18 will also not debut in the EU.

The European Commission is reportedly getting ready to charge Apple for not following rules laid down by Digital Markets Act that require the iPhone maker to allow third-party software developers to “steer” consumers to offers outside the App Store, free of charge.

If found guilty, Apple faces potentially heavy fines.

Apple Watch shipments dropped almost 20% year over year in the first quarter of 2024. Market analysts blame some of the decline on Apple being temporarily forced to halt sales of its most recent wearables in a patent dispute over blood oxygen monitoring in units sold in the United States.

AirPods sales also declined in Q1 2024 but for a different reason.

Apple responded to protests about the Core Technology Fee it charges European developers every time one of their applications is installed. It removed the requirement for apps that generate “no revenue whatsoever.”

Currently, the CTF is only charged in the EU, but it has the potential to expand globally so prudent developers should pay attention to any changes no matter where they live.

The iPad joined the European Union’s list of “gatekeeper” platforms Monday. The designation requires Apple to make the same sorts of sweeping changes to iPadOS that the company already made to iPhone, including allowing sideloading of applications.

Apple has six months to implement the modifications.