Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Epic Games says Apple violated App Store injunction, seeks contempt order

Published 14/03/2024, 03:37 am
© Reuters. FILE PHOTO: Fortnite game graphic is displayed on a smartphone in front of Apple logo in this illustration taken May 2, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

By Jonathan Stempel

(Reuters) -Epic Games, which makes the popular video game "Fortnite," on Wednesday accused Apple of violating an injunction governing its lucrative App Store, and asked a U.S. judge to hold Apple in contempt and end its "sham" compliance.

The companies have been battling in court since 2020, when Epic accused Apple of violating antitrust law by requiring consumers to obtain apps through its App Store, where it charges app developers up to 30% commissions on in-app purchases.

A September 2021 injunction by U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California, let developers provide links and buttons that direct consumers to other means to pay for digital content.

In a filing with the California court, Epic alleged that Apple is in "blatant violation" of that injunction, despite the Cupertino, California-based company's assurance in a Jan. 16 court notice that it had "fully complied."

Epic said Apple has imposed new rules and a new 27% fee on developers for some purchases, which taken together make the links "commercially unusable."

The Cary, North Carolina-based developer also said Apple continues to "categorically prohibit" buttons, and still forbids some apps from telling users they have other purchasing options.

"Apple's goal is clear: to prevent purchasing alternatives from constraining the supracompetitive fees it collects on purchases of digital goods and services," Epic said. "Apple's so-called compliance is a sham."

In response to requests for comment, Apple referred to its Jan. 16 notice, where it said the injunction would protect consumers and "the integrity of Apple's ecosystem," while ensuring that developers do not get a free ride on its platform.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Apple has until April 3 to formally respond to Epic's filing.

Last week, Apple briefly escalated the feud by blocking Epic from launching its own online marketplace on iPhones and iPads in Europe, before backing down two days later.

In January, the U.S. Supreme Court decided not to hear Epic's appeal of lower court findings that Apple's policies did not violate federal antitrust law. The court also decided against hearing Apple's own appeal from the injunction.

The case is Epic Games Inc v Apple Inc (NASDAQ:AAPL), U.S. District Court, Northern District of California, No. 20-05640.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.