Epic Games Accuses Apple of Non-Compliance with Injunction, Seeks Court Enforcement
ICARO Media Group
In a recent legal filing, gaming giant Epic Games has accused tech behemoth Apple of non-compliance with a 2021 ruling that permitted developers to bypass Apple's 30 percent commission on in-app payments. Epic Games is now urging the court to enforce the original injunction.
This development is the latest in a series of clashes between Epic Games and Apple over issues related to app store fees and competition regulations. Epic Games had previously accused Apple of "malicious compliance" with the European Union's new competition laws, and it now claims that Apple is failing to adhere to the 2021 ruling in the United States as well.
Following the Supreme Court's decision to not hear an appeal of the ruling, Apple released revised guidelines that required developers to apply for an "entitlement," while still giving them the option to offer purchases through Apple's own billing system. However, Apple continued to charge a 27 percent commission on external payment systems (or 12 percent for participants in the iOS Small Business Program).
Epic Games argues that these fees are essentially the same as what it charges using its own in-app payment system. It alleges that Apple's non-compliance with the order renders the links to external payment systems "commercially unusable." Epic Games also claims that Apple's requirement of a "plain button style" for external links violates the injunction, as it does not meet the criteria of allowing alternative payment options.
Furthermore, Epic Games asserts that Apple violated the injunction by preventing multi-platform apps like Minecraft from displaying external payment links. To support its claims, Epic Games included statements from other developers, such as Paddle and Down Dog.
In its legal filing, Epic Games accuses Apple of attempting to maintain its supracompetitive fees by preventing alternative purchasing options. It describes Apple's compliance as a "sham" and is seeking a court order to find Apple in civil contempt, require the company to promptly align its policies with the injunction, and remove all anti-steering provisions in Guideline 3.1.3.
Apple, on the other hand, has previously defended its compliance with the injunction by introducing new rules that allow alternative payment buttons or links in apps. It also stated that developers can communicate with customers through points of contact obtained voluntarily from customers through account registration within the app.
The legal battle between Epic Games and Apple continues to unfold, with both sides fiercely advocating for their positions. The outcome of this case could have significant implications for the broader app store ecosystem and the relationship between app developers and platform owners.