A week after Apple was hit with a massive fine and ordered by the European Union to revamp its App Store policies, a U.S court has delivered a similar blow. A judge found that the company violated a prior court order aimed at loosening its grip on the App Store—part of a longstanding legal battle with Fortnite maker Epic Games.
In 2021, U.S. District Judge Yvonne Gonzalez Rogers ordered Apple to allow developers to direct users to alternative payment options for products purchased within its App Store. In response, Apple implemented hurdles for developers, including a 27% fee on external purchases and warnings to users about third-party payment links.
This week, Rogers concluded that “Apple knew exactly what it was doing and at every turn chose the most anticompetitive option” and stated that Apple’s vice president of finance lied under oath. As a result, Apple’s refusal to fully comply with the 2021 injunction may now trigger a criminal contempt investigation.
In the meantime, Apple is barred from imposing commissions or fees on purchases made outside its App Store. It must also replace its prior warnings with neutral messaging informing users that they are being redirected to a third-party site.
An Epic Battle
Epic Games has been in conflict with Apple for a long time. In 2020, the company implemented a store for purchasing Fortnite in-game currency within the mobile versions of the game, then sued for antitrust violations when Apple responded by removing Fortnite from the App Store. In 2021, Judge Gonzalez Rogers ruled that Apple had violated California state law prohibiting anti-competitive behavior by preventing developers from linking to external purchasing options within their apps.
According to Epic Games CEO Tim Sweeney, the ruling will now limit Apple’s control over how merchants operate in its App Store. “This is what we wanted all along,” he said. Sweeney said that Fortnite could return to the App Store as early as next week.
The EU Ruled Simliarly
In addition to a €500 million fine from the EU, Apple will now be required to allow sellers using its App Store to reference or link to alternative storefronts or other payment offers.
Previously, Apple customers in the EU could only complete purchases through the App Store, where the company takes a 30% cut.
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