Apple wins appeal in App Store dispute with Epic

Epic Games has not yet announced whether it plans to appeal the decision.
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The United States appeals court has ruled in favor of Apple, upholding a lower court’s decision that Apple’s App Store policies do not violate antitrust laws.

The ruling is a blow to Epic Games, which had argued that Apple’s policies constituted a monopoly and that developers should be allowed to use alternative payment systems in their apps. However, the court found that Apple’s policies were in line with industry standards and that developers are free to create their own apps and distribute them outside of the App Store if they choose to do so.

Epic Games has yet to announce whether it plans to appeal the decision. The outcome of the case has significant implications for the future of the App Store and the relationship between Apple and app developers.

Epic Games CEO Tim Sweeney said on Twitter, “Apple prevailed at the 9th Circuit Court. Though the court upheld the ruling that Apple’s restraints have ‘a substantial anticompetitive effect that harms consumers’, they found we didn’t prove our Sherman Act case.”

In 2020, Apple sued Epic Games in response to Epic’s decision to introduce its own in-app payment system in the popular video game Fortnite. This move violated Apple’s App Store policies, requiring developers to use Apple’s payment system and pay a 30% commission on all transactions.

Epic Games attempted to circumvent this rule by introducing its own payment system in Fortnite, which allowed players to purchase in-game currency (V-Bucks) directly from Epic, bypassing Apple’s payment system and commission fees. Apple responded by removing Fortnite from the App Store, prompting Epic to file a lawsuit against Apple for antitrust violations.

Apple countersued Epic Games, claiming that the company had breached its contract with Apple and seeking damages for the revenue it lost due to Fortnite’s removal from the App Store.

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