Tuesday, September 28, 2021

Epic Games will appeal the court’s decision on the iOS App Store, despite Apple’s victory

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Epic Games isn’t content with Friday’s court ruling forcing Apple to loosen its payment system for the iOS app store.

Instead, she found that Apple was only in violation of California’s Unfair Competition Law for blocking app developers from using other payment systems on the iOS app store. Hence, she ordered an injunction that bars Cupertino from the practice. Going forward, iOS app developers will be able to use third-party payment options outside of Apple’s in-app store system, potentially bypassing the need to pay Cupertino a 15% to 30% cut of all app sales.

A spokesperson for Epic Games told PCMag the company plans on appealing the court ruling. The reason is because Friday’s ruling only gave Epic Games a partial win. The company’s main goal was to try and convince the court Apple’s iOS store constitutes a monopoly. However, US district judge Yvonne Gonzalez Rogers wasn’t convinced.

 

But interestingly, Rogers added: “The Court does not find that it is impossible (Apple engaged in antitrust); only that Epic Games failed in its burden to demonstrate Apple is an illegal monopolist.”

“The final trial record did not include evidence of other critical factors, such as barriers to entry and conduct decreasing output or decreasing innovation in the relevant market,” Rogers wrote in her 185-page judgement.

The statement is likely prompting Epic Games to come up with better legal arguments in the appeal. In the same 185-page judgement, Rogers notes: “While the Court has found that evidence suggests Apple’s 30% rate of commission appears inflated, and is potentially anticompetitive, Epic Games did not challenge the rate. Rather, Epic Games challenged the imposition of any commission whatsoever.”

In the meantime, Apple has been supportive of the ruling, despite the impending injunction, which takes effect in 90 days.

“Today the Court has affirmed what we’ve known all along: the App Store is not in violation of antitrust law,” the company said in a statement. “As the Court recognized ‘success is not illegal.’ Apple faces rigorous competition in every segment in which we do business, and we believe customers and developers choose us because our products and services are the best in the world.”

News Summary:

  • Epic Games will appeal the court’s decision on the iOS App Store, despite Apple’s victory
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