Judge Rules Against Apple's Anti-Steering Policies in Epic Games Lawsuit
A federal court decides Apple is not a monopoly but finds its anti-steering App Store rules anticompetitive. The ruling prevents Apple from blocking developers who inform users about alternative payment methods.
Epic Games challenges Apple in a major lawsuit over the iOS App Store's strict payment rules. Epic intentionally bypasses Apple's in-app purchase system in its popular game Fortnite to avoid the standard 30% revenue cut. Apple quickly responds by removing Fortnite from the App Store, prompting Epic to file a formal legal complaint against the tech giant.
The court hears the case over three weeks in May 2021 and issues a mixed ruling in September of that year. Judge Yvonne Gonzalez Rogers determines that Apple is not an illegal monopoly and rules in favor of Apple on nine out of ten counts. However, the judge finds against Apple regarding its anti-steering restrictions under the California Unfair Competition Law.
The decision prohibits Apple from stopping developers from informing users about alternative payment options outside of the App Store. Both companies appeal the initial judgement, but the Ninth Circuit Court of Appeal largely upholds the lower court's decision in April 2023. The ongoing legal battle continues to shape the future of digital app marketplaces.