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Apple Maintains 30% Tax; Crypto And NFTs Await

Apple Maintains 30% Tax, Crypto and NFTs Await

A Supreme Court judge has denied Epic Games’ plea to instantly relax Apple’s App Store payment policies, which might have benefited cryptocurrency and NFT apps.

As a result of the US Supreme Court’s decision to delay approving a request to allow apps to link users to payments outside of Apple’s ecosystem, cryptocurrency app developers hoping for a relaxation of Apple’s App Store policies may have to wait longer.

Justice Elena Kagan refused a federal appeals court decision in a decision dated Aug. 9; no justification was provided for the decision.

In April, the Court of Appeals for the Ninth Circuit concluded that Apple had broken California’s competition laws by forbidding apps from directing users to third-party payment options.

The decision allowed companies like Epic Games to direct consumers to different payment options, offering them a way to avoid Apple’s 30% tax on in-app purchases.

For cryptocurrency companies, particularly those that want to let iOS customers buy non-fungible tokens, the 30% Apple tax has also been a barrier.

Currently, the only way to purchase an NFT on an app that is available in the Apple App Store is through the in-app payments system, which has a 30% commission rate and only accepts payments in fiat.

According to Apple’s policies, apps cannot accept cryptocurrency for in-app purchases or to unlock functionality.

Due to this, most cryptocurrency apps only offer basic features like the ability to examine balances and assets. Apps for cryptocurrency trade are unaffected.

Since Justice Kagan rejected Epic’s motion, Apple will be exempt from the ruling for at least a few more months as it prepares an appeal to the Supreme Court.

If the Supreme Court declines to hear Apple’s appeal, the Ninth Circuit decision will take effect.

Epic said that the appeals court had adopted a “lax legal standard” in granting the stay, harming Epic and “innumerable consumers and other app developers for a significant period of time.” This was part of its case to have the hold lifted.

Apple retaliated by claiming that the stay had already been in place for two years and didn’t apply to Epic. In August 2020, Apple removed Epic’s Fortnite from the App Store for attempting to circumvent Apple’s in-app payment system.