The lawsuit is about Apple’s market power through its App Store. Apple only allows downloads of apps and games from its own App Store on its mobile devices. The company prescribes its own Apple Pay system as the payment method and collects up to 30 percent of the app providers’ revenue as a fee.
Epic resisted this and tried to circumvent Apple Pay as a payment method. As a result, Apple banned “Fortnite,” the most popular game from Epic Games, from its App Store.
Developers are allowed to link to other payment systems
Against this background, a lawsuit was already started months ago. Rogers has now ruled that Apple cannot prohibit developer studios from including buttons or links in their apps that refer customers to other payment options outside of Apple’s own in-app purchase system. This also allows the developer studios to circumvent Apple’s high commissions.
The ruling also said that Apple could not prohibit developer studios from communicating with clientele using contact information that developers received when signing up within the app. Rogers thus granted a preliminary injunction sought by Epic, but also ordered the game maker to pay Apple $4 million in damages for breach of contract clauses. At issue is the money Epic had received through direct payments from iOS users.
App monopoly does not fall
At the same time, the court disagreed with Epic’s view that Apple was an antitrust monopolist in the mobile game transactions submarket. Thus, the monopoly to install apps was also not brought down. Until now, Apple has only allowed applications to be installed on the iPhone and iPad through the App Store, and Epic should end that. However, Rogers noted that Apple’s behavior in enforcing certain restrictions was anti-competitive.
Apple sees success
Apple interpreted the ruling as a success despite the preliminary injunction. “Today the court confirmed what we’ve always known: the App Store does not violate antitrust laws.” The court also found that “success is not illegal,” he said. “Apple faces fierce competition in every segment we operate in, and we believe customers and developers choose us because our products and services are the best in the world.” He added that they will continue to work to ensure that the App Store is a safe and trustworthy marketplace. After the ruling, Apple’s stock fell about 2.5 percent.
Epic, which raked in more than five billion dollars last year with “Fortnite,” is also taking legal action against Apple in the EU, the UK and Australia. In addition, the games manufacturer sued the Internet group Google for similar business models in the Google Play Store.
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