Apple Faced Major Strike in Epic Games Trial
The tech giant - Apple has dealt a crucial blow in its ongoing trial against Epic Games, creator of the game Fortnite. The firm had argued that all apps should leverage Apple's in-app payment options. However, a court in Oakland, California, has ruled that the firm can't stop app creators aiming users to 3rd party payment options. Game maker firm had challenged the 'up to 30% cut Apple takes from purchase' & argued that the app store was monopolistic in a high-profile trial. Epic has also sued Google over its play store.
Apple's secure payment option is immensely profitable for the tech giant, but the firm states it doesn't know exactly how much it takes. In addition, the ruling says that Apple can't stop creators from communicating with users. Epic had argued that this was illogical & that creator should be able to tell users that they could make purchases away from the app store.
However, in a win for Apple, judge - Yvonne Gonzales-Rogers said, "Apple enjoys a considerable market share of over 55% and extraordinary high-profit margins." But she added, these factors alone can't show antitrust conduct, as success is not illegal. Apple spokesperson said the court has affirmed that the app store is not in violation of antitrust regulation.
The tech giant in every segment faces rigorous competition & the company believes creators & users choose them as their products & services are the best worldwide. Epic Games chief - Tim Sweeney said, "Today's ruling isn't a win for developers or for consumers. Epic is fighting for fair competition among in-app payment methods and app stores for billion consumers." Since the decision, Apple's share price has been reduced by 3%, wiping billions of dollars from its valuation.
A Complex Decision
It is veracious that the judge mainly sided with Apple on the Epic trial, saying it's not a monopoly. However, the Apple characterization of their victory is misleading. Epic's lawsuit against Apple was speculative & several believed that they didn't stand a chance. It was unveiled that 70 percent of Apple's app store revenue came from the gaming apps.
During the trial, Tim Cook - Apple's CEO added he didn't know how much the firm generates from the app store. Nevertheless, the decision between Apple & Epic has been accepted by antitrust campaigners who believe Apple leveraged their market dominance to torment creators.
Image Source: Screenshot taken from https://www.epicgames.com/store/en-US/news/epic-games-store-2020-year-in-review