Topline Epic Games, maker of Fortnite, asked the Supreme Court on Wednesday to review a California judge’s 2021 ruling that Apple’s App Store policies don’t violate federal antitrust laws, multiple outlets reported—the latest in a feud between the two companies over how games can be downloaded onto iPhones and other devices.
The Supreme Court is seen in Washington, Monday, Sept. 25, 2023. (AP Photo/J. Scott Applewhite)
Copyright 2023 The Associated Press. All rights reserved. Key Facts In its application to the Supreme Court, Epic Games asked the high court to reverse the Ninth Circuit Court of Appeals and the District Court for the Northern District of California’s decisions that both determined Apple did not have a monopoly on mobile gaming.
Epic Games had unsuccessfully argued that by banning third-party app and game marketplaces from its devices, Apple was illegally maintaining a monopoly.
By only allowing its own App Store on its devices, Apple is able to charge developers a commission on the apps and games they sell.
Epic Games wants to avoid paying this commission by circumventing the App Store.
Key Background The two companies’ legal battle has spanned years and was initiated after Apple, and other tech companies, punished Epic Games for giving a discount to Fortnite players who used its payments system rather than Apple’s App Store. In 2021, after a trial, a federal judge in Oakland, California, first determined that Apple did not have a monopoly over mobile gaming, specifically ruling that Apple is legally allowed to prohibit third-party app marketplaces from its devices and charge its 30% commission on transactions within its own marketplace, the New York Times reported. However, the ruling wasn’t a complete loss for Epic Games, as the court decided Apple violated California state laws on unfair competition by forbidding app developers from telling their users about alternative ways to pay for their services outside of Apple’s channels. This means when a customer tries to purchase a subscription or purchase something within an app, the app can, after this ruling, direct them to a payment method outside of Apple’s App Store. However, that change has been put on hold while the appeal process plays out. Still, Epic Games and Apple both appealed the decision and in April, and a federal appeals court in San Francisco affirmed the lower court’s decision. Now Epic Games hopes the Supreme Court will do the opposite and overturn it. In August, the Supreme Court rejected an emergency bid to enact the changes from the first court’s ruling that were put on hold.
What To Watch For The Supreme Court may decide before January whether it will take up the case, according to its regular schedule.
Further Reading Apple App-Store Ruling Challenged at Supreme Court by Epic (Bloomberg)
Epic Games asks US Supreme Court to review Apple antitrust case (Reuters)
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