On Wednesday, technology giants including Meta Platforms, Microsoft, Elon Musk’s X, and Match Group aligned with Epic Games, the creator of the popular “Fortnite” video game, in contesting Apple’s adherence to a court-mandated injunction regarding App Store payments.
The coalition of companies asserted that Apple is in “clear violation” of an injunction issued in September 2021, which allegedly obstructs consumers from accessing cheaper payment options for digital content.
Apple did not specifically address the accusations outlined in a recent filing to the federal court in Oakland, California. The company reiterated its previous stance from January 16, asserting full compliance with the injunction, which it claims serves to protect consumers and maintain the integrity of its ecosystem while ensuring that developers are not unfairly benefited.
The conflict traces back to 2020, when Epic Games initiated legal action against Apple, alleging breaches of antitrust law tied to its requirement for apps to be downloaded exclusively through the App Store, coupled with commissions as high as 30% on purchases.
The court’s injunction mandated that Apple enable developers to include links and buttons directing users to alternative payment methods.
In the most recent developments, Epic has moved to have Apple held in contempt, citing new rules and a raised 27% fee on developers that effectively render the links ineffective.
In their Wednesday filing, the tech firms contended that Apple’s actions serve to entrench illegal anti-steering regulations, thereby reinforcing Apple’s “excessive” commission structure while detrimentally affecting both consumers and developers.
The filing highlighted that “Apple’s restrictions on where and how developers can communicate with their users about their options for purchasing in-app content create significant barriers to competition and artificially inflate prices.”
Earlier this year, the U.S. Supreme Court declined to hear Apple’s appeal concerning the injunction, and it also dismissed Epic’s appeal regarding lower court rulings that deemed Apple’s practices compliant with federal antitrust laws.
Apple is required to formally respond to Epic’s recent filing by April 3. While Apple is headquartered in Cupertino, California, Epic operates out of Cary, North Carolina.
The case is formally titled Epic Games Inc v Apple Inc, filed in the U.S. District Court for the Northern District of California under case number 20-05640.
© Thomson Reuters 2024
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