App Store
Apple has won its appeal in Epic Games’ appeal over the App Store policies, but further appeals are expected.
The US Ninth Circuit Court of Appeals affirmed a lower court’s decision from 2021 that rejected claims from Epic that the App Store policies violated federal laws. Specifically, it pertained to Apple’s decision to forbid third-party app stores on its platforms.
The appeals panel upheld the judge’s ruling in Epic’s favor on California state law claims.
Today’s decision reaffirms Apple’s resounding victory in this case, with nine of ten claims having been decided in Apple’s favor. For the second time in two years, a federal court has ruled that Apple abides by antitrust laws at the state and federal levels.
The App Store continues to promote competition, drive innovation, and expand opportunity, and we’re proud of its profound contributions to both users and developers around the world.
We respectfully disagree with the court’s ruling on the one remaining claim under state law and are considering further review.
Although Apple won the appeal it has still worked to alleviate some developer concerns over how it operates the App Store. For instance, it launched the App Store Small Business Program in 2020 to allow developers who earn less than $1 million per year to pay only 15% of sales to Apple.
Epic & Apple
Epic Games sued Apple in 2020 after Apple stopped the game-maker from bypassing the App Store payment system in which Apple collects a 30% fee from developers. The case has had numerous numerous decisions and appeals and remains ongoing.
Apple has stated that in order to safeguard consumers against scammers, hackers, malware, and spyware, it is necessary to rigorously monitor the programs that run on its widely used phones.
US District Judge Yvonne Gonzalez Rogers rejected Epic’s assertions that the App Store is operated like a monopoly in violation of federal antitrust law, coming to the conclusion that Apple’s practices prevent consumers from receiving lower prices in September 2021.
Rogers granted Epic’s request for an injunction after a three-week trial in Oakland, California, and ordered Apple to permit app developers to direct users to external payment methods. However, the judge did not believe that Apple needed to change its app developer pricing rules or that there was a need for other app stores.
