Apple App-Store Ruling Challenged at Supreme Court by Epic Games

Sept. 27, 2023, 5:31 PM UTC

Epic Games Inc. asked the US Supreme Court to review a California court ruling that found Apple Inc.’s App Store policies don’t violate federal antitrust laws.

Epic’s request is the latest in a long-running battle between the maker of Fortnite and Apple over the way the iPhone maker runs its marketplace. Billions of dollars in revenue are at stake for Apple, which charges developers a commission of as much as 30% for digital goods and services sold through its App Store — a fee Epic is trying to get around paying for its games.

The Supreme Court, per it’s regular schedule, could decide by the end of the year whether it will take up the case.

In April, the 9th US Circuit Court of Appeals affirmed a lower-court judge’s 2021 decision largely rejecting Epic’s claims that Apple’s online marketplace policies violated federal law because it won’t allow third-party app marketplaces on its operating system.

The appeals panel, however, upheld a part of the judge’s ruling that was in Epic’s favor, finding Apple flouted California state law by blocking developers from letting consumers know about alternative payment methods. The Supreme Court in August rejected Epic’s request to let developers start directing iPhone users to other purchasing options, and let Apple keep its current payment rules in place.

To contact the reporter on this story:
Malathi Nayak in San Francisco at mnayak21@bloomberg.net

To contact the editors responsible for this story:
Misyrlena Egkolfopoulou at megkolfopoul@bloomberg.net

Peter Blumberg, Joe Schneider

© 2023 Bloomberg L.P. All rights reserved. Used with permission.

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