A federal appeals court has ruled in favor of Apple on the antitrust case involving the Cupertino-based technology company and Epic Games, maker of the popular online video game, “Fortnite.”
Epic Games refutes. Read on for more details about this news.
The appeals court has upheld the original decision that found Apple is not a “monopolist under either federal or state antitrust laws.”
Apple, the ruling said, did not violate antitrust laws by requiring app developers to utilize the company’s proprietary in-app payment systems.
Furthermore, the US Court of Appeals for the Ninth Circuit, with a three-judge panel, stated Epic Games failed to show how the tech company could have implemented “alternative means for Apple to accomplish the procompetitive justifications supporting iOS’s walled garden ecosystem.”
Rather, the appeals court said Apple is creating “a heterogenous market for app-transaction platforms which, as a result, increases interbrand competition” between Android and iOS.
A ‘resounding victory’; Epic Games refutes
Apple then released a statement about the ruling, saying the court had given it a “resounding victory.”
“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,” Apple said.
Epic Games also issued a statement regarding the ruling.
The video game and software developer and published stated, “Apple prevailed at the 9th Circuit Court. Though the court upheld the ruling that Apple’s restraints have ‘a substantial anticompetitive effect that harms consumers,’ they found we didn’t prove our Sherman Act case… We’re working on next steps.”
Since August 2020
This dispute involving Apple and Epic Games actually started in August 2020 when the game developer introduced a payment option into one of its games, “Fortnite,” which bypassed the in-app payment system of the former. Because of this, Apple removed “Fortnite” from its App Store because it violated its policies.
Last September 2021, a federal judge ruled in favor of Apple, saying that the Cupertino-based tech company did not violate antitrust laws. Epic Games then appealed this decision, but the Ninth Circuit of Appeals has upheld the ruling earlier this week, saying Apple’s Apple App Store policies are not violating any legal principles, including antitrust laws.
In addition, the appeals court also held that Apple is entitled to have Epic Games cover its legal fees from the countersuit, reversing a decision from the lower court.
Both Apple and Epic Games are now given several weeks to decide on whether they would request for a rehearing from the appeals court, or if they would appeal to the Supreme Court.
