Apple shares tumble after new decision in Epic Games fight

Apple shares fell more than 2% after the tech giant was hit with an injunction on Friday in the company’s legal battle with Fortnite creator Epic Games.

The injunction, Judge Yvonne Gonzalez Rogers, will allow developers who use the company’s app store to place “buttons, external links or other calls to action” in their apps and metadata that ” direct customers to purchasing mechanisms, in addition to In- Purchase applications. ”

Apple can also no longer prohibit developers from communicating with customers through touchpoints obtained voluntarily through account registration in apps.

The order, which will take effect in December, comes after Epic Games announced plans to implement its own in-app payment system in the popular video game last year to avoid paying Apple a $ 30 commission. %. In response to this decision, Apple removed Fortnite from its App Store and restricted access to its iOS developer account. Epic retaliated with an antitrust lawsuit, accusing Apple of using its App Store to stifle competition and maintain a monopoly in the app market.

IPHONE 13? APPLE SETS DATE OF LAST PRODUCT LAUNCH EVENT

Apple won nine of the ten counts, but it was found to have engaged in anti-competitive behavior under California’s unfair competition law.

“The court finds that Apple’s anti-leadership provisions hide critical information from consumers and illegally stifle consumer choice,” Rogers wrote in the ruling. “When coupled with Apple’s nascent antitrust violations, these anti-management provisions are anti-competitive and a nationwide remedy to eliminate these provisions is warranted.”

However, Rogers pointed out that the court ultimately could not find that Apple was a monopoly under federal or state antitrust laws.

“While the Court finds that Apple enjoys a sizable market share of over 55% and extraordinarily high profit margins, these factors alone do not point to antitrust conduct,” Rogers added. “Success is not illegal.”

Additionally, Rogers has ruled that Epic has to pay 30% of all revenue collected through Fortnite’s direct payment system since August 2020.

Prior to the decision, Apple shares were trading at an all-time high of $ 154.30 per share.

CLICK HERE TO LEARN MORE ABOUT FOX BUSINESS

Apple said it was “very satisfied” with the court’s decision, which it considers a “huge victory”.

“This is a resounding victory that underscores our company’s merit as both an economic and competitive engine,” Kate Adams, general counsel for Apple, said in a statement.

Meanwhile, an Epic Games spokesperson confirmed to FOX Business that the company plans to appeal the decision.

“Today’s decision is not a victory for developers or for consumers. Epic is fighting for fair competition between in-app payment methods and app stores for a billion consumers,” tweeted Epic CEO Tim Sweeney. “Fortnite will return to the iOS App Store when and where Epic can offer in-app payment in fair competition with Apple in-app payment, passing the savings on to consumers.”