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The judge in the case between Apple and Epic Games has issued a permanent injunction against Apple. The company is to allow App Store developers to direct users to other payment systems, which would allow them to bypass the 30% cut in in-app payments at Apple. Engadget has contacted Apple and Epic Games for comment.
Judge Gonzales Rogers ruled in favor of Epic on one count. She determined that Apple had violated California’s unfair competition law, which led to the injunction, which is expected to take effect in 90 days.
Under the injunction, Apple is “permanently restricted and directed” to prevent developers from including in their applications and metadata “buttons, external links or other calls to action that direct customers to purchasing mechanisms, in addition to in-app purchases ”. Apple also cannot prevent developers from “communicating with customers through touchpoints voluntarily obtained from customers through in-app account registration.”
On all other charges, Judge Gonzales Rogers ruled in favor of Apple, determining, among other things, that the App Store does not violate antitrust law. She also ruled against Epic in Apple’s breach of contract counterclaim. As such, Epic must pay Apple $ 3.65 million. This equates to 30% of the $ 12,167,719 Epic earned from Fortnite IOS players between August and October 2020 via the Epic direct payment system. Epic must also pay Apple 30% of the revenue it received through this system between November 1 and today.
Offering an alternative payment system was at the heart of the Epic v Apple case. The former launched the legal fight in August 2020, when he informed Fortnite players on iOS and Android that they would receive a discount on in-game products if they bypassed Apple and Google’s payment systems. Both operating system manufacturers have been removed Fortnite of their app stores, and Epic has sued them both. The Apple case went to trial in May.
The move comes a day after Epic asked Apple to restore its developer license so it can offer again Fortnite to iOS users in South Korea through the App Store. This country recently passed a law that will require Apple and Google to allow other payment systems in their app stores, but this has not been approved.
Apple declined Epic’s request, stating that although it would welcome the developer again if it followed the same rules as everyone else, “Epic has admitted to breaking the contract and so far there is no has no legitimate basis for reestablishing their developer account. “
This injunction could mark a monumental change for the App Store ecosystem and Apple’s business if it goes into effect. Developers would no longer have to pay Apple more than 30% of iOS app revenue, which could cost the company billions. Spotify and Netflix are among the large companies that do not allow users to purchase a subscription through their iOS apps, due to the reduction taken by Apple.
Despite the injection, do not expect Fortnite to return to the App Store for now. It is highly likely that Apple will appeal the decision.
Development…
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