In the legal dispute between the games group Epic Games and the iPhone manufacturer Apple, which was carried out in several countries, about the opening of its software platform, the game provider in the USA lost again. The US Court of Appeals for the Ninth Circuit in San Francisco ruled that the “Fortnite” makers cannot accuse Apple of monopoly on the iOS App Store. The responsible judges therefore left the decision of the lower court of 2021 in force, in which the iPhone group was largely right. Apple’s developer license agreement does not violate the anti-monopoly legislation of the Sherman Act.
The market is “unimportant”
According to the judgment published on Monday (Case: 21-16506, 04/24/2023, ID: 12701215), the court of appeal found an error in the definition of the relevant market – but classified it as “unimportant”. The “Fortnite” developer company Epic wanted to avoid the 30 percent levy on the purchase price that Apple withholds from transactions in its App Store.
Epic Games used a trick in 2021: a version of the application was passed through the app inspectors, with which users could also buy virtual items from Apple. Apple threw “Fortnite” from the App Store because of the rule violation. Since then, the game has no longer been available on the platform via the App Store, and can only be played on the iPhone via gaming streaming services.
Apple must tolerate tips
Epic accused Apple of unfair competition after being kicked out, but lost on most counts in a US federal court. At the same time, however, the court of appeal left a decision of the lower court in force, according to which Apple should make it easier for app developers to point out purchase options outside of the app store. The iPhone group wanted to overturn that.
In other regions of the world, the dispute is already much more advanced. In Europe, for example, the EU’s Digital Markets Act (DMA) is set to force the opening of the iPhone platform in the foreseeable future. Apple then has to tolerate the so-called sideloading, which Epic Games and other software companies have been demanding for years. This could be a direct competitor to the App Store on the iPhone.
Statements from Apple and Epic
Apple hailed the result as a “resounding victory” and declared to the financial news agency Bloomberg, nine out of 10 lawsuits have so far been decided in his favour. The App Store promotes competition, drives innovation and expands the possibilities of companies, the group claimed.
Naturally, Epic sees things differently. Company boss Tim Sweeney tweeted that while Apple won, the appeals court allowed at least the part of the 2021 ruling that proved Epic right. It was about the possibility to refer to external platforms. Apple’s so-called anti-steering provisions have been rejected. “(This) gives iOS developers the freedom to also send customers online to do business with them directly,” said Sweeney. Epic Games are now “working on the next steps”.
(bsc)
