Apple Appeals to Supreme Court in Epic Games Dispute
According to Reuters, Apple is making a final attempt to secure a portion of in-app sales by requesting the Supreme Court to review Epic Games’ anti-trust case. Two previous court rulings have mandated that Apple abandon its regulations that prohibit apps from incorporating their own payment alternatives, a policy that has been beneficial for Apple’s financial performance.
The battle began in 2020 when Epic released a new Fortnite update that allowed players to purchase digital coins through a direct payment feature. The move violated Apple’s policy requiring all iOS games to use in-app purchases — and gave Apple a 30 percent cut of the profits. Apple removed Fortnite from its App Store in response, despite its regular status as one of its top-grossing games. In retaliation, Epic sued Apple to stop its “unfair and anti-competitive practices” with the goal of changing its policies rather than seeking damages.
The lawsuit was a mixed bag for both sides: In 2021, U.S. District Judge Yvonne Gonzalez Rogers ruled that Epic knowingly violated Apple’s rules and that the iPhone maker didn’t have to add Fortnite back to the App Store. Rogers also stated that Apple was not acting as a monopoly, but that the company must allow apps to offer third-party payment systems to their users. The change took effect last year, and the U.S. Court of Appeals for the Ninth Circuit upheld the entire ban last April.
In their filing, Apple’s lawyers argue that the ruling extends beyond Epic Games and “exceeds the district court’s authority under Article III, which limits federal court jurisdiction to actual cases and controversies.” Basically, they claim that the court overstepped the mark and asked the Supreme Court to recognize this and allow their App Store to go back to normal (developers reducing sales to Apple). One way or another, Apple will at least have to adapt in some countries, as new European Union regulations require the company to allow third-party app stores by 2024.
