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The judge shrugged off a challenge to how the Developer Product License Agreement-the one that developers like Epic sign to distribute apps in the iOS ecosystem-supposedly acted as a restraint of trade under Section 1 of the Sherman Act. In September 2021, Judge Rogers ruled that none of Apple’s behavior violated federal antitrust laws. District Court Judge Yvonne Gonzalez Rogers handed down a Solomon-like decision that left no one particularly satisfied. (Apple disputes those figures, but it’s certainly in the billions.) Apple responded by booting Fortnite from its App Store and alleging a contract breach Epic, in turn, accused Apple of monopolistic misbehavior with antitrust claims.Īfter a trial last year, U.S. Apple also prevailed in arguments that Epic breached its contract clauses, leading to damages of 30 of the 12 million it earned from its brief direct payments system's activity. That cut, of course, is a foundation of the multi-trillion dollar company’s business model: Ned Barnes of Berkeley Research, a key witness for Epic, estimated that Apple generated $22 billion in commissions from in-app purchases in 2020 alone-and that almost 80 percent of that money was pure profit. Apple, Inc., a dispute that first arose in 2020 when the Fortnite game developer attempted to bypass Apple’s 30 percent commission. Browning Courthouse in San Francisco, the Ninth Circuit Court of Appeals will hear oral arguments in Epic Games v. ![]() There’s no reason to think Elon’s blue check business won’t have to pay the toll. Last Monday, Apple updated its rules to take a cut of ad campaigns that are managed through its platform, too, in yet another strike against Meta. ![]() That’s because Apple insists that developers, like Twitter, use its payment system for any transactions that go through its app store-a global “tax on the Internet,” as Elon once put it, that amounts to tens of billions of dollars in fees every year. Apple will also argue that the original court made an error when implementing an injunction that will force App Store changes.Īpple claims that because it was not found to be engaging in anticompetitive behavior, the App Store rules are not unfair and the district court did not have the authority to mandate an injunction.Everyone’s talking about Elon Musk’s plan to charge Twitter users $8 per month for those coveted blue check-mark badges, but there’s a crucial detail that always seems to get left out of the discussion: the 30 percent fee that will end up in Apple’s pocket. Epic, says Apple, made far-reaching claims at the edges of antitrust law, and there is no basis for the ruling to be overturned on appeal. Epic Games will argue that the court made "multiple legal errors" in its initial ruling, once again arguing for sideloading to be allowed.Īpple maintains that Epic Games lost the trial because of "unprecedented" and "unfounded" accusations of anticompetitive conduct that ultimately did not sway the judge. Apple won the antitrust suit, but was ordered to allow developers to add in-app links to outside websites where payments could be accepted.Īpple does not want to change its App Store rules and also appealed, leading to the court battle today. Epic Games aimed to get the court to allow for third-party app stores and alternate methods of getting apps on iOS devices, but Epic Games largely lost the lawsuit, leading it to file an appeal. ![]() Apple quickly pulled the Fortnite app from the App Store, and Epic Games was ready with an antitrust lawsuit over Apple's App Store rules. Apple saga started way back in 2020 when Epic Games started allowing Fortnite players to make purchases directly in the app, skirting the in-app purchase rules. ![]() The ongoing legal battle between Apple and Epic Games resumed today, with lawyers for both companies meeting in the United States Court of Appeals to attempt to get the initial ruling from last year overturned. ![]() |
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