Apple’s 30% NFT Tax is Deemed Illegal by US Court

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Ralph Chua is a publisher. He is passionate about NFTs and blockchain technology. This website is curated with content from his favorite source of information. He created this website with the intention to stay up to date with the ever-evolving and groundbreaking NFT industry.

So the interesting thing is we covered The story a very long time ago okay but I don't know if you even remember but You know there was a whole amazing news That you could have the nfts within apps In the App Store and that was like the News and everyone was so happy then it Came out a few weeks later that Apple Put all these terms and conditions in Place and the biggest one was that you'd Have to pay 30 of every transaction that Happened on it to Apple now that's all Well and and good when a membership is Ten dollars and apple takes three Dollars but Apple wanted to take 30 of The total transaction fee so even if the NFC was free but gas was ten dollars Apple wanted three dollars of the gas Not understanding that the full ten Dollars goes to the miners and and that Means that literally the developer would Have to pay three dollars every time a Transaction for a free nft happened Anyway they were taken to court Um for for that I don't know if I've lost my mouse it Would be very weird Okay he's there there he is okay and They were found it was deemed to be Illegal by U.S court now I do think it's Important to know that this is not Always the end of things usually Especially with big companies you know a Lower court will say it's illegal they

May appeal then it goes to a higher Court until it gets the Supreme Court And then whatever they say happens but So far the federal uh appeals court Issued a ruling declaring that the 30 Tax Um on in-app purchases of nfts was Illegal this decision could Significantly disrupt the way nfts are Sold and bought on the popular app store They're ruling greatly could greatly Impact the nft community right Um So the application was bought by epic Games and epic games was the one who Wanted to introduce nfts into their Apple app Um and they successfully uh won this Case against Apple And the decision declared that Apple's Mandate for developers to use their In-app payment system on nft Transactions Stafford Innovation Hindered competition and was illegal Yeah And the reading was part of a Re-evaluation of a lawsuit Court by epic Ends the company that made fortnite Against Apple in 2020 and on Monday a Panel of Judges re-evaluated the lawsuit And withhelders my question is can I go Further than the federal court I don't Know what the courts are called there Versus here like I know here the highest

Is the Supreme Court of Appeal I don't Know if that's what your equivalent of The federal quarters do you know what The highest court is called in America Maybe any of the viewers know Supreme Court Is it is it also the Supreme Court Okay so there might be another one but The Supreme Court's the one it's the top One that's probably the highest one it's Probably a secret hidden one yeah so This is the federal appeals this is the Federal appeals court so if there's a Higher Court assuming that there is They'll definitely take it on a pill The community expects Apple to appeal Well I was going to say also I saw Because I covered this story in Tick Tock and I remember those couple Comments about it and said this is very Standard and I also look it might be Standard but a large majority of these Nft apps were going to be free To download an apple as a policy for Free to download games that does not Include a 30 tax also it's kind of Unfair that they just like Only chose nft free apps to not I was Like that's kind of where it's not Really fair because it's just there's no Other reasoning I was like this is you See the thing is when it was a free game On the App Store Um the in-app purchases which are

Optional in that free game Apple would Get a percentage of of that right and And and so here that's what they would They they apply Apple was applying the Same logic yeah saying okay you know What's stopping you from creating your Whole economy within the game making it Free so whether it's Apple earns nothing On it when the person downloads it and Then the in-app purchases are all nfts If those are free also Apple's making no Money on it whereas you are potentially Making money on it right And that's why they wanted to Um do that but again it's not the end of The story Um there will be an appeal um but you Know every time it goes to a higher Court in the higher quarter upholds it I Don't know I think your chances of even Higher Court uphold this is now the Second time it has been upheld so yeah Let's see what happens on a pill but Definitely short-term last bullish story For the space yeah sure sure Another bullet story

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