Epic Games Deals Huge Blow to Apple in the Lawsuit’s Aftermath

  • By
  • Published
  • Est. 3 minutes

The lawsuit between Epic Games and Apple has finally come to a close. Although the judge ruled in favor of Apple on nine out of ten instances, it did consider the company’s approach to be anti-competitive. As a result, the tech giant was prohibited from disallowing developers to use links to their own payment systems. 

Epic Versus Apple: Finally Resolved 

Although Epic Games didn’t manage to reach the outcome it wanted, and its CEO Tim Sweeney lamented not getting Apple to allow developers to offer their own in-app purchases, the game company still landed a huge blow to its opponent. 

Judge Yvonne Gonzalez-Rogers found Apple guilty of anti-competitive practices. This resulted in the court issuing the following injunction to the tech company:

  • Apple and all related parties are now strictly prohibited from blocking developers from including hyperlinks to payment methods different from Apple’s
  • Parties can seek a modification of this order at any time
  • The court will issue sanctions if the injunction’s clauses are breached by any party
  • The injunction takes power in ninety days 

In the end, however, Apple wasn’t found guilty of holding a monopoly, as Epic Games alleged. Judge Gonzalez-Rogers’ verdict was that a company’s success does not necessarily equal monopoly and that success in itself isn’t illegal. 

Apple Is Guilty of Anti-Competitive Practices

The court also disclosed some relevant industry statistics, revealing that despite gamers being a mere 10% or less than the total user base, Apple gets 70% of its revenue through gaming applications. Additionally, it turns out that Apple has around 55% of the application market share.

This wasn’t found to constitute a monopoly, but Apple’s overall violation of the California Unfair Competition Law was definitely something that didn’t go unnoticed and left a sour taste in the judge’s mouth. She pointed out that Apple intentionally hides critical information from its customers and seeks to illegally influence their opinions. 

A nationwide remedy to eliminate those provisions is warranted,” Gonzalez-Rogers promised.

While this may not be an optimal win for Epic Games as it lost on most accounts and had to pay $3.6 million to its opponents, it is definitely a swing in the direction the game company envisions. The main reason for the whole lawsuit was Epic Games’ unwillingness to pay the 30% fee that Apple imposes on developers. 

While Apple will still have the right to take this fee for in-app purchases, now it will not be able to prohibit users from providing their own payment links that will be able to avoid taxation. 

Leave a Reply

Your email address will not be published.