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Apple Wins Battle With Epic Games Over App Store Rules

 |  April 24, 2023

On Monday, an appeals court issued a verdict mostly favoring Apple in a lawsuit against Epic Games regarding App Store regulations, reported CNBC.

The decision indicates that Apple’s authority over the iPhone App Store and its fees may not undergo significant changes due to the ongoing legal battle with Epic Games.

Apple hailed it as a victory. “Today’s decision reaffirms Apple’s resounding victory in this case, with nine of 10 claims having been decided in Apple’s favor,” an Apple spokesman told CNBC. “For the second time in two years, a federal court has ruled that Apple abides by antitrust laws at the state and federal levels.”

Also Read: Apple Urges 9th Circuit To Undo California Ruling In Epic Games Suit

The App Store is the only way to sell iPhone apps to consumers and is fiercely controlled by Apple. Apple employees check every update and can reject entire apps. Apple takes up to 30% of all digital sales inside iPhone apps. The App Store is critical to Apple’s profit, contributing to its $78.1 billion in services revenue in fiscal 2022.

Developers of apps and games have expressed discontent with Apple’s App Store regulations and fees for a considerable time. Epic Games filed a lawsuit against Apple, alleging antitrust violations, and claimed to represent not only themselves but also the interests of the broader developer community.

Epic filed a lawsuit against Apple when the game company introduced its own payment system in Fortnite, violating Apple’s rules and leading to a ban from the App Store. A trial took place in California in 2021 where both Apple CEO Tim Cook and Epic Games CEO Tim Sweeney gave testimony.

The Ninth Circuit Court’s ruling on Monday upheld the decision that Apple’s ban on competing app marketplaces on iPhones did not violate antitrust law.