A judge has ruled in the Epic Games v. Apple case that although the company is not a monopolist, it may not prevent developers from linking their apps to other payment mechanisms - a severe blow for the Cupertino-based company.
As a result of a ruling in the legal dispute between Epic Games and Apple, Apple must now allow developers to include alternative purchase links in applications in the App Store - but Apple has prevailed on most other points. Nevertheless, Apple shares fell by around 3.31%. It is a serious setback for the Cupertino-based company. In the court decision is called it:
Epic Games vs. Apple: Setback for the App Store business
Apple will be permanently prevented from prohibiting developers from including in their apps and their metadata buttons, external links, or other calls to action that direct customers to purchase mechanisms in addition to in-app purchases and (ii) communicating with customers through touchpoints that they voluntarily obtain by registering their account in the app.
Although Apple beat Epic on all but one of the points of the lawsuit, the ruling is a massive blow to Apple's App Store policy. It is very likely that Apple will appeal the ruling. The injunction in its current form will take effect in 90 days. This means that developers can give their customers the option to pay for digital goods and services outside of Apple's App Store. In a statement to various US media welcomed Apple’s decision:
Today, the court confirmed what we've always known: The App Store does not violate antitrust laws. As the court recognized, 'success is not illegal.' Apple faces fierce competition in every segment we serve, and we believe customers and developers choose us because our products and services are the best in the world. We remain committed to ensuring the App Store remains a safe and trusted marketplace that supports a thriving developer community and more than 2.1 million jobs in the U.S., and where the rules apply equally to everyone.
Verdict: Epic Games breached contract
In a clearly calculated move, Apple has not even acknowledged the concessions the court is asking the company to make, nor has it expressed any plans to appeal the ruling. Apple has already made a similar concession regarding reader apps like Netflix and Spotify. But that did not apply to all applications, especially games like Fortnite. But there is also some positive news. Judge Gonzalez Rogers ruled in Apple's favor regarding Epic Games' breach of contract on the App Store, ordering the company to pay Apple 30% of the $12.1 million earned between August and October 2020, as well as 30% of all revenue earned from November 2020 to the present. The judge also affirmed the court's ruling that Apple's decision to terminate Epic Games' developer account was lawful:
(2) a statement that (i) Apple's termination of the DPLA and the related agreements between Epic Games and Apple was valid, legal, and enforceable and (ii) Apple has the contractual right to terminate its DPLA with any or all of Epic Games' wholly owned subsidiaries, affiliates, and/or other companies under its control at any time and in Apple's sole discretion.
Apple does not have to restore developer account
This is an important aspect of the case because it means that Apple is not (at least legally) obligated to reinstate Epic Games' developer account, meaning Fortnite may never return to Apple devices. Epic Games CEO Tim Sweeney expressed regret at the decision, stating that the ruling is "not a victory for developers or consumers," but rather that the company is fighting "for fair competition between in-app payment methods and app stores for a billion consumers." Sweeney further stated that Fortnite will only return to the iOS App Store if it can offer in-app payments and pass the savings on to consumers, and promised to continue fighting the case. (Photo by FreedomTumZ / Bigstockphoto)
