The Supreme Court denied petitions to hear an antitrust suit filed by Fortnite’s Epic Games against Apple. Both the companies had filed petitions in the Supreme Court, but the highest court in the nation refused to hear the case. This is a significant win for Apple but not a total one as it must make some changes.
In 2020, Epic introduced its payment system, bypassing the commission Apple earned on in-app purchases. Apple banned Epic Games from its iOS Store. Epic filed a lawsuit saying that Apple had violated US antitrust laws.
The Supreme Court’s decision not to hear the petitions means that a 2023 appeals court ruling stands. The appeals court said Apple’s business model did not violate antitrust laws. However, it also noted that the business model violated California’s Unfair Competition Law as it limited the ability of developers to provide information about alternate payment systems that might be cheaper.
The decision applies nationally. So, Apple now has to allow developers to tell users about payment options that might cost less.
Apple shares fell by roughly 2.7 percent after the announcement by the Supreme Court but later regained almost 1 percent in the afternoon.
There was a temporary stay in the earlier decision as the petitions had reached the highest court. Now, developers can direct iPhone users to purchasing options outside Apple’s App Store through buttons or links.
Apple charges developers up to 30 percent for goods and services they sell through their App Store. Now, developers can bypass this and provide their customers with cheaper payment options outside the App Store.
Apple has not responded to the Supreme Court’s decision not to hear its petition. Epic CEO Tim Sweeney posted on social media that “developers can begin exercising their court-established right to tell US customers about better prices on the web” and more.
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