Epic Fails to Secure Immediate Change to Apple’s App Store Payment Rules
According to Bloomberg, Epic Games’ bid to expedite changes to Apple’s App Store payment practices has been unsuccessful. The company, known for creating Fortnite, had appealed to the Supreme Court to reverse a ruling by the US Ninth Circuit Court of Appeals that postponed an injunction against Apple regarding its App Store regulations. However, Justice Elena Kagan declined the request without offering any explanation.
The Ninth Circuit Court of Appeals upheld the injunction in April. However, it suspended the injunction in July to allow Apple to take the case to the Supreme Court.
Following a successful 2021 lawsuit between Apple and Epic Games, a lower court judge ruled that Apple violated California’s Unfair Competition Law by preventing third-party developers from directing users to alternative payment options. A judge ordered an end to this practice.
For the past three years, companies have been battling the issue of in-app payments in iOS. Epic raised the ire of Apple (and Google) when it told Fortnite mobile players that they would get a discount on the in-game currency V-Bucks if they bypassed the iOS and Android payment systems. Apple and Google reduce in-app transactions by up to 30 percent on iOS and Android devices.
The mobile platform holders quickly poached Fortnite from their respective app stores, Epic sued them both, and the legal battles are still ongoing. Google’s case (in which Match Group is a plaintiff) is scheduled to be heard in court this November.
Regardless of what happens in the US, Apple and Google have already been forced to open their platforms to third-party payment systems in certain markets such as South Korea and the Netherlands. It has also been reported that Apple plans to allow third-party app stores on the iPhone as early as next year, largely to comply with upcoming rules from the European Union. Epic is already prepared for that, with its own mobile app store ready to go.
