Epic Games, the creator of Fortnite, is gearing up to challenge Apple’s compliance with a district court ruling that allowed app developers to direct users to their own websites and payment platforms. This move comes after the Supreme Court’s decision not to hear the Apple antitrust case, which left the current ruling in effect. While Apple emerged victorious in most aspects of the case, the court’s decision to permit app makers to steer their customers to the web from links or buttons inside their apps has prompted a shift in Apple’s App Store rules.
Key Takeaway
Epic Games is set to challenge Apple’s compliance with a court ruling that allowed app developers to direct users to their own websites and payment platforms, highlighting the need for fair competition and consumer choice.
Apple’s Compliance and Epic’s Response
Despite the court’s ruling, Apple’s compliance still involves charging commissions on purchases made outside of apps, a decision that Epic Games intends to contest in court. According to Epic Games CEO Tim Sweeney, Apple’s “bad-faith” compliance undermines the judge’s order, which would have allowed buttons or external links “in addition to [in-app purchases].”
The District Court’s Ruling and Apple’s App Store Guidelines
The Ninth Circuit District Court ruled in favor of Epic on one count out of ten, finding that Apple violated California’s Unfair Competition law. This ruling led to the removal of the “anti-steering” clause from Apple’s agreement with App Store developers, which had previously prevented app developers from directing their customers to other payment methods from inside their apps.
Apple updated its App Store Guidelines following the Supreme Court’s decision, but with certain limitations. While the commissions on purchases were reduced, many developers argue that these small discounts are not enough to make alternative payment processing worthwhile.
Epic’s Stance and Future Actions
Tim Sweeney highlighted that developers are unable to offer their digital items at a lower cost on the web after paying a third-party payment processor and the new 27% Apple Tax. Additionally, Epic Games plans to contest Apple’s compliance in District Court, emphasizing the need for fair competition and consumer choice.
