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U.S. District Judge Yvonne Gonzalez Rogers in Oakland, Calif., Ruled on Friday that Epic had failed to prove that Apple had an illegal monopoly on smartphone apps, dismissing the Fortnite maker’s challenge against the $ 30 commissions. % of Apple and the restrictions on developers using other payment models in the app store. It did, however, overturn Apple’s rules that prohibit developers from educating consumers about cheaper options online.
But from the very first page of his decision, Gonzalez Rogers left open the possibility that someone else would be more persuasive if he took on Apple’s dominance of smartphone apps again.
While “the Court ultimately cannot find that Apple is a monopoly under federal or state antitrust laws … the Court does not consider that this is impossible; only that Epic Games has failed to demonstrate that Apple is an illegal monopolist, ”she wrote.
That kind of additional evidence may already be in the hands of the Department of Justice, which has been investigating Apple’s antitrust laws for about two years.
John Bergmayer of Public Knowledge, who is advocating for Apple and Google to change their app stores, argued that the ruling could offer a roadmap for DOJ antitrust prosecutors on what they should show to convince it in their own antitrust lawsuit.
The decision “will influence regulatory and legislative efforts,” he said. “I don’t even think the conclusion that Apple is not a monopoly under federal antitrust law is good for Apple. It is proof that the people on the other side are saying that this is why we need legislation.
Gonzalez Rodgers also appeared to express his frustration that the Apple App Store issue was left to the courts.
“Nothing other than legal action seems to motivate Apple to reconsider prices and reduce tariffs,” she said.
Gonzalez Rogers has spent the past decade reflecting on antitrust laws and Apple, making his findings about the company all the more relevant. In 2012, she dismissed a class action lawsuit brought by consumers who alleged that the company’s commissions had caused app prices to rise. This decision was overturned by the Supreme Court two years ago and is now before it again (antitrust cases are known to take forever). She also presided over a 2014 antitrust lawsuit related to iTunes and Apple’s iPod, where a jury sided with the company.
In a call with reporters, Apple’s general counsel Kate Adams said the move was a “resounding victory” for the company, despite the order requiring Apple to allow communications on less options. dear.
A number of lawmakers were quick to assert that the move was just the start of the fight against Apple’s App Store rules.
Representative Hank Johnson (D-Ga.), Co-sponsor of an App Store bill HR 5017 (117), called on Gonzalez Rogers’ requirement for Apple to allow developers to communicate other options “a good first step for developer rights” as they work on legislation to force further changes.
“How a judge could look at the evidence and decide that Apple is not a monopoly defies logic,” tweeted Rep. Ken Buck (R-Colo.), The GOP’s senior member of the House Judiciary antitrust panel and co-sponsor of a legislative package aimed at taming the giants of technology.
Trump’s Justice Department opened an investigation into Apple in 2019, but chose to prioritize a separate case against Google. And when Epic Games filed a lawsuit against Apple last summer, antitrust prosecutors ruled they had a stay: a well-funded plaintiff had hired some of America’s top antitrust lawyers and economists to take on Apple. Perhaps the woefully underfunded antitrust DOJ battling another tech giant in court could step back and let Epic do the heavy lifting.
DOJ antitrust prosecutors quietly continued their investigation, attending Epic’s three-week antitrust trial every day in May. The agency reassigned additional lawyers to the investigation this summer in hopes of concluding the investigation by the end of this year.
Gonzalez Rogers has made it clear that the Justice Department may take action during oral argument on May 24.
“Nothing prevents the government of the United States from doing something,” she said at the time.
Of course, Epic’s case is far from over as well. The The maker of Fortnite has always said it will appeal at a loss.
After the decision, Epic CEO Tim Sweeney said the decision “is not a victory for developers or for consumers.”
Apple officials acknowledged that the injunction would require them to allow developers to provide links to cheaper online options, but maintained the details have yet to be worked out. The company also declined to exclude its own appeal from Gonzalez Rogers’ injunction, saying it is still reviewing the decision.
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