![]() ![]() The decision in the case involving Epic Games, maker of the hit video game “Fortnite,” upholds a lower court ruling that found Apple is not a monopolist in the distribution of iOS apps, and that Apple did not violate antitrust laws by requiring app developers to use Apple’s proprietary in-app payment systems. This effectively means that a game could suggest you visit an external website to add money to an in-game account, but you'd still have to leave the app to do it rather than be able to just add money to a wallet within the app.A federal appeals court largely sided with Apple on Monday in a closely watched case about its app store policies, a decision that could complicate future efforts to regulate app store operators and frustrate claims that Apple behaves monopolistically. We will fight on."Ĭritically, Sweeney's statement points out that Epic and other developers still aren't free to put direct payment options to outside sources within their apps - they can only link to outside options for payment processing. "Thanks to everyone who put so much time and effort into the battle over fair competition on digital platforms, and thanks especially to the court for managing a very complex case on a speedy timeline. "Fortnite will return to the iOS App Store when and where Epic can offer in-app payment in fair competition with Apple in-app payment, passing along the savings to consumers. Epic is fighting for fair competition among in-app payment methods and app stores for a billion consumers. "Today’s ruling isn't a win for developers or for consumers. Tim Sweeney responded, also on Twitter, on behalf of Epic: jobs, and where the rules apply equally to everyone." We remain committed to ensuring the App Store is a safe and trusted marketplace that supports a thriving developer community and more than 2.1 million U.S. As the Court recognied 'success is not illegal." Apple faces rigorous competition in every segment in which we do business, and we believe customers and developers choose us because our products and services are the best in the world. "Today the Court has affirmed what we've known all along: the App Store is not in violation of antitrust law. Apple's is as follows, as shared by business reporter Mark Gurman on Twitter: Update: Apple and Epic have each issued statements in response to the ruling. ![]() A similar ban on major platforms preventing developers from using outside payment was recently put into effect in South Korea. Furthermore, this ruling comes in tandem with proposed legislation that would solidify the ability for developers to use their own payment systems, as well as continued pushback on Apple from other directions on its restrictive walled garden. This is doubtless not the end of the fight, as either party can still escalate the issue to a higher court if they are dissatisfied. In total, Epic will pay Apple at least $3.6 million. The court has ordered Epic to pay out 30% of the $12,167,719 in revenue Epic collected from users in the Fortnite app on iOS through Direct Payment between August and October 2020, plus further damages. The court stated it believes the injunction will "increase competition, increase transparency, increase consumer choice and information while preserving Apple’s iOS ecosystem which has procompetitive justifications."Īpple did counter-sue Epic for breach of contract, and the judge ruled in favor of Apple on this point. The court's final order took issue with both parties' definitions of their "relevant markets," saying that the market the two were fighting over was neither Apple's own internal systems (as Epic said), nor all of gaming (as Apple claimed), but rather "digital mobile gaming transactions." Given that market, the court declared it "cannot ultimately conclude that Apple is a monopolist under either federal or state antitrust laws."īut nonetheless, the court stated that Apple's conduct was "anticompetitive," hence the injunction. However, this was the only point on which Epic won its case. ![]()
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