Apple Requests Reprieve in Epic Antitrust Case Amid Escalating Battle
The ongoing legal battle between Apple and Epic Games, the developer of popular game Fortnite, has taken another turn. A day after Epic petitioned the Supreme Court to intervene in their antitrust case against Apple, the tech giant has filed its own request for a reprieve on an order from lower federal courts. This order demanded that Apple change its policy on in-app purchases.
Epic Games, the creator of Fortnite and the Unreal game development tool, has argued that Apple’s policy of forcing developers to sell in-game content exclusively through the App Store constitutes an unfair monopoly. Apple takes a 30% cut of all App Store purchases, a practice that Epic Games believes stifles competition.
In its filing to the Supreme Court, Epic Games stated, Apple forecloses any competition for either its App Store or its payment solution, using that exclusivity to collect billions of dollars in supracompetitive profits.
However, Apple disagrees with the lower courts’ rulings and maintains that it does not have a monopoly over the market for mobile apps. Apple argues that its apps are available on various platforms, including game consoles and other app stores like Google Play.
In its petition filed on Thursday, Apple asked the Supreme Court to overturn the lower courts’ determination that developers must be allowed to inform customers of alternative ways to purchase in-game add-ons. Apple claims that forcing the company to do so would violate California laws on unfair competition.
Both lower courts had previously ordered Apple to change its policy and allow developers to direct users to alternative storefronts for in-app purchases. However, Apple successfully filed for a pause on the injunction in July, preventing the enforcement of the rule while the company filed an appeal. Epic Games attempted to bypass this injunction but was unsuccessful.
The legal battle between Apple and Epic Games has been ongoing since 2020 and has already resulted in Fortnite’s removal from Apple’s ecosystem. If Epic Games were to win the case, it could significantly impact Apple’s revenue stream from developers on its platform. In 2022, the App Store generated $78.1 billion in revenue for Apple.
On the other hand, if Apple emerges victorious, it will be allowed to continue its business practices that have been criticized by other companies like Spotify, Tinder’s Match Group, and Tile. This case also has implications for Epic Games and Match Group’s lawsuit against Google Play, raising similar concerns.
The Supreme Court has until January to decide whether it will hear the case, and its decision will likely have a significant impact on the future of the app market and the relationship between Apple and developers.
In conclusion, Apple and Epic Games are locked in a legal battle, with both companies seeking a favorable outcome. The case could have far-reaching consequences for the app market and Apple’s revenue stream. The Supreme Court’s decision on whether to hear the case will be crucial, shaping the future of app distribution and competition.
