According to foreign reports, Epic Games previously filed a lawsuit against Apple for in-game payments in Fortress Heroes. A federal judge ruled on the legal dispute between the two parties this Friday, even though Apple won 9 out of 10 claims. However, the court found that it violated the anti-competitive behavior under California law, forcing the App Store to relax its control over in-app purchases. The court injunction will take effect in December. Apple’s
stock price also fell by more than 3% on Friday. Judge Yvonne Gonzalez Rogers also believes that Apple is not a monopoly. As for Epic Games, the court ruled that it violated the contract with Apple. In addition to paying compensation, it also needs to pay Apple 30% of all income of “Fortress Heroes” on iPhone and iPad.
Judge Rogers issued a verdict in this high-profile trial on Friday and also issued a prohibition order that will no longer allow Apple to prohibit developers from providing links that lead users to leave Apple’s in-app purchases. Apple usually takes 15 to 30% commissions from total sales. The ban will resolve long-standing complaints from developers and increase the likelihood that developers may direct their users to their websites to subscribe or purchase digital content. In other words, the sales amount of Apple’s App Store is likely to be greatly affected. Data shows that the turnover of the App Store in 2020 is estimated to be $64 billion.
Judge Rogers believes that the court’s decision pointed out that Apple’s “no guidance” clause hides key information from consumers and illegally stifles consumers’ choices. Coupled with Apple’s initial antitrust violations, these terms are considered anti-competitive. However, Judge Rogers also pointed out that Apple is not a monopoly, because success is not illegal in itself.
Epic Games CEO Tim Sweeney said on Twitter that today’s verdict is not a victory for developers and consumers. Epic is providing in-app payment methods for 1 billion consumers and between app stores. Fight for fair competition.
Judge Rogers stated that he does not believe that Epic Games and Apple’s explanation of the dominant market framework is correct, and that it is a “digital mobile game transaction”, not all iPhone apps claimed by Epic Games, nor all video games claimed by Apple.
Court documents show that the conflict between the two companies began in August 2020, when Epic implemented a program called “Project Liberty” to challenge Apple. According to court documents and evidence, as early as 2015, Epic Games CEO Tim Sweeney was dissatisfied with Apple’s in-app purchase rules. Epic Games later added a direct purchase channel that bypassed Apple in a certain update of “Fortress Heroes”, which violated Apple’s norms prohibiting manufacturers from guiding customers away from in-app purchases. In the end, Apple removed “Fortress Heroes” from the App Store. According to the plan, Epic also filed a lawsuit.
Judge Rogers ruled that Epic Games must pay Apple damages for breach of contract, and at the same time pay Apple 30% of all revenues of “Fortress Heroes” on the iPhone and iPad.
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