In a continuing legal battle between Epic Games and Apple, Epic Games has accused Apple of violating an injunction governing its App Store and has sought a contempt order against the tech giant. The dispute, stemming from Epic’s popular video game “Fortnite,” dates back to 2020 when Epic first alleged that Apple’s App Store policies violated antitrust laws by imposing hefty commissions on in-app purchases.
The recent development revolves around a September 2021 injunction by U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California. This injunction allowed developers, including Epic Games, to provide links and buttons directing consumers to alternative payment methods for digital content, circumventing Apple’s App Store payment system and its associated fees, which can reach up to 30%.
Epic Games, based in Cary, North Carolina, claims that Apple has blatantly violated this injunction. Despite Apple’s earlier assurance in a Jan. 16 court notice of full compliance, Epic alleges that Apple has implemented new rules and a 27% fee on developers for certain purchases, rendering the provided links and buttons “commercially unusable.” Additionally, Epic states that Apple continues to prohibit buttons categorically and restricts some apps from informing users of alternative purchasing options.
Epic Games argues that Apple’s actions aim to maintain its dominance in the digital marketplace and prevent competition that could reduce the fees it collects from developers. In its filing with the California court, Epic asserts that Apple’s claimed compliance is a sham, designed to protect its own interests rather than ensuring fair competition and consumer choice.
This legal dispute has seen various twists and turns, including a January decision by the U.S. Supreme Court not to hear Epic’s appeal of lower court rulings that Apple’s policies did not violate federal antitrust law. The court also declined to hear Apple’s appeal from the injunction, leaving the matter to be settled in lower courts.
Apple has until April 3 to formally respond to Epic’s allegations. In response to requests for comment, Apple referred to its previous notice where it stated that the injunction aims to protect consumers and maintain the integrity of its ecosystem, while ensuring developers do not exploit its platform.
The clash between Epic Games and Apple has also extended beyond the courtroom. Last week, Apple temporarily blocked Epic from launching its own online marketplace on iPhones and iPads in Europe, before eventually reversing its decision after two days.
As the legal battle continues, both Epic Games and Apple remain key players in the tech industry, with the outcome of this dispute potentially influencing the future landscape of app distribution and digital marketplaces.
The case, titled Epic Games Inc v Apple Inc, is being heard in the U.S. District Court for the Northern District of California under case number 20-05640.
