How Epic's court win could loosen Apple's grip on developers
What's the story
In a long-standing battle over digital market dominance, Epic Games has won a major case against Apple.
A federal judge ruled that Apple knowingly disobeyed a court order to open its App Store, further strengthening Epic's position.
The company was found to have violated a 2021 injunction that mandated allowing developers to include in-app links directing users to third-party payment options on the web.
The ruling could potentially inspire other developers to challenge Apple's policies.
Background
The legal tussle: Epic Games vs. Apple
The legal battle between Epic Games and Apple dates back to August 2020.
Epic added a direct payment option in its popular game Fortnite, circumventing Apple's in-app payment system.
The move violated Apple's strict App Store rules that mandate the use of its own payment system and charge a 15-30% commission on purchases.
Apple removed Fortnite from the App Store, prompting Epic to sue for antitrust violations.
Legal outcome
Court ruling and its implications
The case went to trial in 2021, leading to a mixed ruling.
Judge Yvonne Gonzalez Rogers ruled Apple's anti-steering provisions, which barred developers from informing users about alternative payment options, as anticompetitive under California law.
She ordered Apple to allow developers to include such links.
Both parties appealed, but the US Supreme Court declined further appeals in 2024, upholding the ruling.
Apple's response
Apple's defiance and potential consequences
Judge Rogers found Apple had willfully violated the injunction.
Although Apple technically permitted developers to link to outside payment methods, it introduced new terms such as compulsory approvals and a controversial new 27% fee, effectively violating the spirit of the ruling.
The judge referred this issue to federal prosecutors for potential criminal contempt charges against Apple.
Internal communications showed some executives recommended full compliance, but were overruled by others prioritizing revenue protection.
Information
Epic's victory and its impact on the digital market
For Epic Games, this ruling confirms their long-standing argument that Apple's dominance over the App Store is excessive and anti-competitive. CEO Tim Sweeney celebrated the decision as a "landmark step" toward a more open and fair digital economy.