The San Francisco Circuit Court of Appeals on Monday, April 24, upheld the trial court’s decision in the case between Apple and Epic Games.
Although the trial verdict was largely in Apple’s favour, the court also ordered significant changes to the App Store’s rules. These changes include the ability for developers to redirect users to external links.
The implications of this decision could have a significant impact on the mobile app industry, setting a new standard for accessing in-app purchases and third-party content. However, the long-term implications of this decision remain uncertain.
Apple cleared by US courts of unfair competition charges
2020, Epic Games blamed Apple anti-competitive practices by charging 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, bypassing App Store rules, resulting in Fortnite being banned from Apple’s Store.
Despite an initial ruling unfavorable to Epic Games, the company had appealed, redefined its strategy and insisted on the abuse of Apple’s dominant position. In 2021, Judge Yvonne Gonzalez-Rogers pinned Apple over its practice of preventing users from accessing lower prices through external links. However, the American judiciary has recently confirmed that Apple has not done anything reprehensible in this case on an anti-competitive level. 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 the conflict with Epic Games has consequences: the company must clarify certain mechanisms of the App Store and authorize publishers to offer third-party payment platforms, according to initiatives already launched in certain countries. Apple must 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 fostering competition, fostering innovation, and expanding opportunities for users and developers around the world. However, she “respectfully” disagrees with the court’s decision on the latest charges and is considering further investigations.
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 provide a quality user experience on the App Store.
Epic Games responded
Epic Games CEO Tim Sweeney commented on the decision on his Twitter account.
“Apple won its case in the Ninth Circuit Court of Appeals. While it upheld the decision that Apple’s restrictions have a ‘significant anti-competitive effect adversely affecting consumers,’ it noted that we have not failed to prove the merits of the Sherman Act.” .
However, the head of the Fortnite and Unreal Engine publisher welcomed the court’s decision to dismiss one of the questions.
