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OAKLAND, Calif. (CN) – A federal judge on Tuesday evening dismissed two Apple counterclaims against Fortnite maker Epic Games, in the popular online game maker’s antitrust lawsuit challenging Apple’s practice of downsizing 30% off all in-app purchases.
United States District Court Judge Yvonne Gonzalez Rogers also said Apple “had no basis” for its claim for punitive damages.
Epic Games sued Apple and Google after tech companies kicked Fortnite from their app stores over an ongoing dispute over commissions.
The legal dispute began when Epic encouraged its users to pay it directly for game upgrades instead of using Apple, which earns a 30% commission on all app payments through its App Store.
This policy is at the center of several lawsuits by app developers claiming that Apple is using its app store to exert monopoly power in the market.
Apple has counterattacked for breach of contract, claiming that Epic is trying to circumvent App Store rules to avoid paying millions of dollars in commissions. Apple says it is owed for sales of Fortnite content. According to Apple, Epic broke the contract by launching its own integrated payment system.
In its counterclaims, Apple also accuses Epic of intentional interference with potential economic benefit and conversion.
In a motion for judgment on pleadings filed ahead of Tuesday’s hearing, Epic said a judgment dismissing those allegations will ensure the case remains focused on the validity of Apple’s agreements and practices. These are the issues upon which Epic’s claims and Apple’s contract-based counterclaim depend. “
Gonzalez Rogers told Apple lawyer Anna Casey on Tuesday that the tech giant “was on the losing side.”
“I don’t believe you have a tort claim here. I’ve said it before and I’m saying it today, ”said Gonzalez Rogers.
As for Apple’s intentional interference claim, Gonzalez Rogers told Casey, “You can’t just say it – you actually have to have facts to back it up, and you don’t.
The judge also said that Apple failed to demonstrate ownership or the right of possession as required for a conversion claim.
Casey compared Epic to hackers and said the games company “has funds that should be in Apple’s possession.”
“Epic has abused funds that should be in Apple’s hands,” Casey said.
But Gonzalez Rogers noted that Apple doesn’t own the funds, which are owned by Epic – Apple is only entitled to a 30% discount.
She added: “The 30% are in dispute.”
In a hearing last month, Gonzalez Rogers refused to return Epic’s Fortnite game to the Apple App Store. The case is expected to be tried next year.
Epic’s attorney Casey and John Karin did not return requests for email comment until press time.
An Apple spokesperson said in a statement that the company believes that Epic’s conduct “should be prosecutable under California tort law.”
“It is clear, however, that Epic has broken its contract with Apple,” the statement continued. “In a manner that the Court characterized as deceptive and clandestine, Epic activated a feature of its application that was not reviewed or approved by Apple, and it did so with the express intention of violating the App Store guidelines that also apply to all developers who sell digital products. goods and services. Their reckless behavior has made clients pawns, and we can’t wait to make sure it’s fair for them in court next May. “
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