In a significant legal development, Epic Games has petitioned the United States Supreme Court to reconsider a 2021 ruling that absolved Apple of antitrust violations, as reported by Bloomberg. Epic Games, the creator of Fortnite, had previously asserted that Apple violated California’s Unfair Competition law by imposing restrictions within the App Store that prevented developers from guiding users to third-party payment systems.
The US Ninth Circuit Court of Appeals had, in April, upheld the 2021 decision, acknowledging that Apple’s practices had a “substantial anticompetitive effect that harms consumers.” However, it concluded that these actions did not meet the threshold for an antitrust case.
Should Epic Games prevail in its Supreme Court appeal, Apple could face significant repercussions, potentially impacting a substantial portion of its revenue. Apple’s business model involves collecting a percentage of all transactions conducted through its App Store, with fees that can soar as high as 30 percent. Epic Games has been a vocal advocate for reform in this regard, joined by other companies like Spotify and Tile under the banner of the Coalition for App Fairness, collectively exerting pressure on Apple to revise its policies.
While outside the United States, Epic Games and similar entities have achieved some success in challenging the status quo, with authorities in South Korea and the Netherlands mandating the inclusion of third-party payments, Apple still manages to extract a “transaction fee” from these transactions. In anticipation of the European Union’s Digital Markets Act, Apple is rumored to be preparing to facilitate support for third-party app stores.
According to Bloomberg, the Supreme Court could make a determination regarding the case’s acceptance before the end of the year. Meanwhile, Fortnite remains conspicuously absent from the App Store, a consequence of its removal in August 2020 when Epic Games introduced alternative payment methods in a bid to circumvent the App Store’s revenue share.
Epic Games is concurrently embroiled in a legal battle with Google, alleging similar practices. Both Epic Games and the Match Group, known for dating apps like Hinge and Tinder, contend that Google wields its control over Android app distribution through the Play Store to impose unfair fees and in-app purchase requirements. This legal dispute is poised to commence in the coming weeks, amplifying the broader conversation surrounding app store policies and practices.
