The San Francisco Court of Appeals confirmed, on Monday, April 24, the decision of the trial court in the case between Apple and Epic Games.
Although the trial verdict was largely in favor of Apple, the court also ordered significant changes to the App Store rules. These changes include the possibility for developers to redirect users to external links.
The implications of this decision could have a significant impact on the mobile app industry, introducing a new standard for access to in-app purchases and third-party content. However, the long-term effects of this decision remain uncertain.
Apple acquitted by US courts for unfair competition
In 2020, Epic Games accused Apple of anti-competitive practices by imposing a 30% commission on all transactions made in applications downloaded from the App Store, including the game Fortnite. In response, Epic had encouraged players to make purchases through its own system, circumventing App Store rules and resulting in Fortnite being banned from Apple’s store.
Despite an initial judgment unfavorable to Epic Games, the company had appealed, redefining its strategy and insisting on the abuse of Apple’s dominant position. In 2021, Judge Yvonne Gonzalez-Rogers pinned Apple over its practice of blocking users from accessing lower prices using external links. However, the American justice recently confirmed that, on the anti-competitive level, Apple had done nothing reprehensible in this case. This ruling could have significant implications for the mobile app industry and app store rules.
The crushing victory of the apple?
Apple’s victory in its conflict with Epic Games has consequences: the company will have to clarify certain mechanisms of the App Store and authorize publishers to offer third-party payment platforms, in accordance with initiatives already started in certain countries. Apple will have to comply with this court decision in the coming weeks.
However, the company welcomed the ruling, saying that for the second time in two years a federal court has ruled that it complies with state and federal antitrust laws. She is proud of the App Store’s contributions to promoting competition, driving innovation, and expanding opportunities for users and developers around the world. However, she “respectfully disagrees with the court’s decision” on the latest charge, and is considering further investigation.
Ultimately, the court’s decision is an important step in the dispute between Apple and Epic Games. It offers Apple a resounding victory, but also forces it to face some significant consequences. The coming weeks will therefore be crucial to see how the company will adapt to this new reality and how it will work with publishers to continue to offer a quality user experience on the App Store.
Epic Games reacts
Epic Games CEO Tim Sweeney commented on the decision on his Twitter account.
“Apple won its case in the Ninth Circuit Court of Appeals. Although it upheld the decision that Apple’s restrictions have a ‘substantial anti-competitive effect that harms consumers’, it found that we do not failed to prove the merits of the Sherman Act”.
The boss of the publisher of Fortnite and Unreal Engine, however, welcomed the decision of the court to dismiss one of the questions.
