Supreme Court Rejects Appealing Against Apple-Epic Antitrust Case

  • Olivia Harrington
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Supreme Court Rejects Appealing Against Apple-Epic Antitrust Case

The United States Supreme Court recently turned down an appeal by both Apple and Epic Games, the maker of Fortnite, in relation to an antitrust case pertaining to the App Store's supposed monopolistic behavior. This decision came unexpectedly, in light of a recent verdict that found Google at fault in a similar dispute with Epic Games. It ensures the original decision, which favored Apple by asserting the company had not indulged in monopolistic practices, stays put. However, the original verdict had mandated that Apple allow app makers to direct their users to the internet via links in their apps.

The court-imposed directive disturbed Apple's “anti-steering” guidelines for its App Store, which led to Apple's quest to appeal. The company's stance is against app developers advertising their own websites and payment systems within iOS apps. Apple fears this could lead to lowered App Store purchases and, in turn, Apple's share of developer revenues.

Nevertheless, developers are inclined towards having a direct connection with their users. This scenario could benefit consumers as well because app-based purchases or subscriptions could cost less on the web, bypassing the need to pay Apple's commission. After the verdict, Epic Games CEO Tim Sweeney expressed sadness about the case's withdrawal, stating that the fight continues.

Sweeney highlighted that the District Court’s injunction against Apple’s anti-steering rule remains in effect and informed developers that it has established its right to direct U.S. customers to more competitive prices online.

Moreover, post the decision, Apple’s stock took a significant hit, dropping over two and a half percent, reflecting investors' acknowledgment of the potential ramifications of this ruling. Even though the stock slightly recovered, it is still down. Rick VanMeter, executive director of Coalition for App Fairness, which includes Epic Games and others, reiterated that this verdict is a win for developers and consumers.