Supreme Court Denies Apple's Appeal in Epic v. Apple Case, Allowing Changes to App Store Policies

https://icaro.icaromediagroup.com/system/images/photos/15995999/original/open-uri20240116-17-1dzmukd?1705441909
ICARO Media Group
News
16/01/2024 21h49

In a significant development, the Supreme Court has declined to hear the petitions resulting from the long-standing Epic v. Apple antitrust dispute. While most of Epic's complaints remain unanswered, the gaming company has achieved a notable victory in terms of pricing notices.

The dispute between Epic Games and Apple began in August 2020 when Epic attempted to bypass Apple and Google's app stores by introducing direct virtual currency purchases within Fortnite. The matter quickly escalated, with major companies like Spotify and Microsoft rallying behind Epic's claim that Apple's strict control over the App Store violated antitrust laws.

After months of legal battles, the case reached trial in May 2021, where the court fiercely debated the definitions of "games" and "marketplace." In September 2021, a Northern California judge ruled in Epic's favor, ordering Apple to allow developers to offer their own payment buttons and communicate with customers about alternative payment options. Although an appeals court later upheld Apple's App Store as not violating antitrust laws, the ruling regarding opening up payments and messaging remained in place.

Today's denial of petitions for certiorari effectively signals that Apple has exhausted its legal options, and changes to App Store policies are now inevitable. Multiple courts have found Apple's "anti-steering" language to be anticompetitive, meaning that developers will soon be able to include links and messaging that direct users to alternative payment options outside of the App Store. This shift will likely result in a significant commission loss for Apple.

However, Epic's goals of restoring Fortnite to the App Store and enabling third-party stores or sideloading on iPhones have not been achieved. In contrast, Epic's antitrust suit against Google yielded a unanimous jury verdict in mid-December, with a judge set to decide how to address Google's violations. This could potentially lead to the allowance of third-party app stores and payment systems on Android devices.

Tim Sweeney, CEO of Epic Games, expressed his disappointment in the Supreme Court's decision, stating that the "battle to open iOS to competing stores and payments is lost in the United States." He highlighted that developers on Apple's platforms can now inform US customers about better prices on the web. Sweeney also emphasized the potential impact of regulatory and policy actions globally, citing the forthcoming EU Digital Markets Act.

As of now, Apple has not issued any official comments regarding the Supreme Court's decision, leaving industry experts and developers eager to learn more about the tech giant's next steps.

The outcome of the Epic v. Apple case marks a significant turning point in the battle over app store practices, potentially leading to more competition and choice for developers and consumers alike.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

Related