Apple scores a win over Epic Games in bitter App Store dispute – Times of India

The US federal appeals court ruled a victory for Apple in the ongoing antitrust lawsuit with Fortnite maker Epic Games over its App Store policies.
The three-judge panel, in a 2 to 1 ruling, concluded that Apple’s strict control over its App Store does not violate federal antitrust law, despite claims from app developers that the company’s policies limit competition and impact their profits.
“There is a lively and important debate about the role played in our economy and democracy by online transaction platforms with market power,” the three-judge panel wrote in the decision. “Our job as a federal court of appeals, however, is not to resolve that debate — nor could we even attempt to do so. Instead, in this decision, we faithfully applied existing precedent to the facts.”
“Today’s decision reaffirms Apple’s resounding victory in this case, with nine of 10 claims having been decided in Apple’s favour,” Apple said in a statement.
Apple might still have to allow third-party payment options
Although the majority of Epic’s claims were dismissed in favour of Apple, the judges upheld the lower court’s ruling that Apple was in violation of California’s Unfair Competition Law by preventing app developers from directing customers to alternative payment methods outside of the App Store, which takes a 30 per cent cut.
If the decision stands, it could allow app developers offering subscriptions or digital services on iPhone apps to direct their customers to external websites to complete purchases, bypassing Apple’s fee requirement.
Apple has indicated that it may pursue further appeals against this particular ruling.
Apple told Bloomberg that the App Store remains committed to promoting competition, fostering innovation, and creating global opportunities for users and developers. The company takes pride in the significant contributions of the App Store in these areas. “We respectfully disagree with the court’s ruling on the one remaining claim under state law and are considering further review,” said the company in an email statement.
The legal battle between Apple and Epic Games began in 2020 when Apple suspended Fortnite from the App Store for allowing users to make in-app purchases using third-party payment options, bypassing Apple’s 30 per cent commission on in-app transactions. In response, Epic Games filed a lawsuit against Apple, accusing the company of engaging in unfair and anti-competitive practices.
Tim Sweeney, CEO of Epic, took to Twitter to comment that while Apple emerged victorious in the appeals court, he noted that the portion of the 2021 ruling that favoured Epic remained intact.
“Fortunately, the court’s positive decision rejecting Apple’s anti-steering provisions frees iOS developers to send consumers to the web to do business with them directly there. We’re working on the next steps,” he wrote.
After the ruling, Epic may have to bear Apple’s legal fees for the trial.
Epic’s fight with Google
Epic Games have filed a similar lawsuit against Google, which is set to go on trial in November later this year.
Similar to Apple, Google removed Epic Games’ Fortnite from the Play Store on Android for violating in-app payment guidelines.
Google has recently filed a partial motion for summary judgement, seeking the dismissal of various arguments made by the plaintiffs, including Epic Games, around its app store business, revenue-sharing agreements, and other app store-related projects.