Apple and Fortnite-Maker Epic Games Continue Legal Battle Over App Store Practices

Highlights

• Epic Games challenges Apple’s in-app payment system, bypassing the 30% commission.
• Court orders Apple to allow external app sales, but the conflict continues.
• Epic claims Apple’s 27% fee on alternative payments violates court injunction.
• Supreme Court refuses to hear appeal, prolonging the legal dispute.

The legal tussle between Apple and Epic Games, the maker of Fortnite, appears to be far from over, even after the Supreme Court’s decision not to hear appeals from either side.

The dispute originated when Epic Games introduced its own in-app payment system on the iPhone, bypassing the App Store and denying Apple its 30% commission.

This move was a blatant breach of the App Store’s terms and conditions, prompting Apple to remove the company from the App Store.

Apple vs Epic: The Court is Taking No Sides

Consequently, the two companies found themselves embroiled in a legal battle.

While the court ruled that Apple did not operate a monopoly, it ordered the tech giant to allow app sales outside the App Store.

In the latest development, Reuters reports that Apple has denied breaching the court order regarding its App Store practices.

The iPhone maker has urged a federal judge in California to dismiss Epic Games’ request to hold it in contempt.

Apple presented its arguments in a filing to US District Judge Yvonne Gonzalez Rogers in Oakland, who oversaw Epic’s lawsuit in 2020.

The lawsuit accused Apple of breaching antitrust laws due to its stringent controls over how consumers download apps and make payments within them.

Apple argued that Epic’s request aimed to “micromanage Apple’s business operations in a way that would increase Epic’s profitability.”

Epic, on the other hand, declined to comment on the matter.

Epic Claims Apple’s Blatant Violation

Last month, Epic filed a court document claiming that Apple was in “blatant violation” of the court’s injunction.

The video game maker pointed to Apple’s imposition of a 27% fee on developers for some purchases, which Epic claimed made links for alternative payment options “commercially unusable.”

The crux of Epic’s argument is that Apple’s terms prevent developers from offering cheaper app sales on the web since they would still have to pay the company a 27% commission, despite the App Store not being involved in the transaction.

After accounting for around 3% in payment processing costs, developers would essentially be paying the same 30% they pay on App Store sales.

While the US Supreme Court declined to hear Apple’s appeal of the injunction order in January, the ongoing legal battle between the two companies shows no signs of abating.

FAQs

What is the core issue between Apple and Epic Games?

The conflict began when Epic Games introduced an alternative in-app payment system in Fortnite, circumventing the Apple App Store’s 30% fee.

This led to Epic Games’ removal from the App Store and the ensuing legal battle.

What was the court’s decision regarding Apple’s App Store practices?

The court ruled that while Apple was not a monopoly, it must allow developers to direct users to purchasing methods outside of the App Store.

What is Epic Games’ latest legal action against Apple?

Epic Games has requested a federal judge to find Apple in contempt of court, alleging that Apple’s imposition of a 27% fee on certain transactions violates the court’s previous injunction.

How does Apple defend its App Store fees?

Apple argues that the fees are necessary for maintaining the App Store, which provides security, privacy, and a trusted environment for software distribution and transaction processing.

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