Epic Games prevails in legal confrontation against Apple's business practices
Straight up, Tim Sweeney, CEO of Epic Games, dropped a bombshell on the social media platform X. He announced that the popular game, 'Fortnite', will be back on the official iPhone app store in the U.S. next week.
The news came hot on the heels of a U.S. court ruling that Apple intentionally flouted a 2021 court decision. This decision now prevents Apple from charging exorbitant fees - ranging from 15% to 30% - for payments made outside the App Store on iOS apps.
You might remember, Apple and Epic Games have been waging a legal war since summer 2020. Epic, the company behind 'Fortnite', decided to bypass App Store payments as a form of protest.
For those interested, the court ruling has serious consequences. A federal judge found Apple in contempt for willingly violating a 2021 injunction. This requires Apple to allow developers to communicate payment options outside the App Store and avoid imposing new commissions on off-app purchases. The judge even went as far as to ask federal prosecutors to investigate potential criminal contempt charges against Apple for allegedly lying during proceedings.
But that's not all. Tim Sweeney announced that Fortnite would return to the U.S. iOS App Store, but on the condition that Apple extends the court's "friction-free" payment framework globally. Another game company, Spotify, has already submitted an updated app leveraging the ruling to bypass Apple's payment restrictions.
Apple plans to appeal the contempt order, stating its disagreement with the court's interpretation. In the meantime, the court's injunction remains in effect, reshaping App Store developer agreements.
Sources:
- Business Insider
- Bloomberg
- The Verge
- Ars Technica
- Wired
- The news of Fortnite returning to the U.S. iPhone app store next week was announced by Tim Sweeney, CEO of Epic Games, following a court ruling that found Apple intentionally violated a 2021 court decision.
- This court ruling has significant implications, with a federal judge finding Apple in contempt for violating a 2021 injunction, requiring Apple to allow developers to communicate payment options outside the App Store and avoid imposing new commissions on off-app purchases.
- Alongside Fortnite, Spotify has also submitted an updated app leveraging the ruling to bypass Apple's payment restrictions. The general-news outlets such as Business Insider, Bloomberg, The Verge, Ars Technica, and Wired have reported extensively on this issue.
- In response, Apple plans to appeal the contempt order, stating its disagreement with the court's interpretation, while the injunction remains in effect, reshaping App Store developer agreements.
- Analysts suggest that this court ruling and subsequent events could have far-reaching consequences for the finance and technology sectors, influencing business decisions and strategies related to mobile app stores and in-app payments.
