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AMSTERDAM, Oct 7 (Reuters) - The Dutch antitrust authority has found that Apple’s rules requiring software developers to use its in-app payment system are anti-competitive and ordered it to make changes, four people familiar with the matter said, in the latest regulatory setback for the iPhone maker.
Apple has also appealed the Epic v Apple verdict
Apple doesn't want to give up its cut so easily.
In a move which will surprise nobody at all, Apple has filed a notice of appeal in the antitrust trial against Epic, makers of Unreal engine and Fortnite. Though it won nine of the ten charges against it, Apple's single loss was a pretty severe one. Enough that we called it a big win for Epic, though Apple says it was their win.
Apple's loss is that it was ordered to allow mobile apps to point consumers at outside payment methods. That would let apps avoid the 15-30% share of their earnings that they have to give to Apple right now.
Apple's appeal includes a request for a stay on the injunction that lets developers add in-app links to payment websites outside Apple's ecosystem. That means Apple wants to wait until all the appeals are concluded before being forced to comply with the court's ruling—potentially adding years to the time before that order takes effect. As of now, the injunction would begin on December 9th.
"“The requested stay will allow Apple to protect consumers and safeguard its platform while the company works through the complex and rapidly evolving legal, technological, and economic issues that any revisions to this Guideline would implicate," said Apple.
Epic has already appealed the ruling as well, looking for more than a single victory (and pondering the meaning of the word button.)
Epic's antitrust case against Apple looks dead in the water
The latest ruling by an appeals court may well seal the deal.
Apple has emerged largely victorious in the latest round of a legal battle with Epic Games, which focuses on antitrust laws and the way the App Store is run. Epic's suit, sparked by various shenanigans around the hugely popular Fortnite, says that Apple's marketplace violates federal law by banning third parties from using their own payment platforms on the operating system: That is, it's a monopoly.
The suit began in 2020 after Epic updated Fortnite on iOS with a payment workaround, which would bypass Apple's usual 30% cut. In response, Apple promptly banned the app. Essentially this is all about the cut the platform-holder is taking from third party developers, and whether those developers should have the right to implement their own payment systems. The 2021 judgement in the case largely sided with Apple though gave Epic one win in finding that certain restrictions of the App Store were anti-competitive, and since that Apple has been actively working to address those concerns.
The latest ruling comes from the US Ninth Circuit Court of Appeals (thanks, Bloomberg), and affirms the 2021 decision by a lower court that mostly rejected Epic's claims. The panel of three judges acknowledge the "lively and important debate about the role played in our economy and democracy by online transaction platforms with market power" but noted its role was not to attempt to resolve that debate but apply "existing precedent to the facts."
The previous ruling did conclude that Apple's iOS policies stopped consumers from getting cheaper prices, but rejected Epic's claims that this constituted a monopoly in violation of federal antitrust law. The appeals court did think the lower court had "erred" in its definition of the appropriate antitrust market, which may yet prove relevant(opens in new tab), but also bought Apple's argument that it needs to actively police the applications running on its phones.
Apple has been mitigating some of the major antitrust concerns the courts have previously raised. It allows certain apps such as newspapers and streaming services to "steer" consumers to non-iOS payment services, for example, though notably still excludes games such as Fortnite.
Needless to say Apple called this latest ruling a "resounding victory" before adding several lines about how great the App store is, and disagreeing with the one count it lost on (that the App store restrictions have an anti-competitive effect): "We respectfully disagree with the court’s ruling on the one remaining claim under state law and are considering further review."
Tim Sweeney, Epic co-founder and CEO, was serene about the latest result, though highlighted that the court upheld the element of the ruling allowing developers to send customers outside of the App store for payments.
"Apple prevailed at the 9th Circuit Court," wrote Sweeney(opens in new tab). "Though the court upheld the ruling that Apple's restraints have 'a substantial anticompetitive effect that harms consumers', they found we didn't prove our Sherman Act case.
"Fortunately, the court's positive decision rejecting Apple's anti-steering provisions frees iOS developers to send consumers to the web to do business with them directly there. We're working on next steps."
Then, ya boy Tim climbed a mountain:
Sweeney and Epic have been on the warpath for several years now against what they see as anti-competitive industry practices. You can't say that they lack fight: As well as taking on Apple, Epic's embroiled in an antitrust battle with Google parent company Alphabet.
And while it would be easy to characterise this fight as being about Epic wanting to keep all that lovely Fortnite money to itself, it's a much larger battle that has profound implications for all developers and platform-holders. In the EU, for example, the new Digital Markets Act is addressing exactly this concern and will force platform-holders like Apple to make their operating systems more open to third party developers (though what this will mean in practice remains to be seen).
Will Epic be back for another round? It certainly has the money but, more to the point, this is a difference of world views between giants of technology. Epic is huge, but it's not Apple or Alphabet huge, and sees itself as standing up for the future of developers on these ubiquitous platforms: Just how much control app-makers should have, and in what manner, will run and run.
Epic win: Jury decides Google has illegal monopoly in app store fight
Three years after Fortnite-maker Epic Games sued Apple and Google for allegedly running illegal app store monopolies, Epic has a win. The jury in Epic v. Google has just delivered its verdict — and it found that Google turned its Google Play app store and Google Play Billing service into an illegal monopoly.
After just a few hours of deliberation, the jury unanimously answered yes to every question put before them — that Google has monopoly power in the Android app distribution markets and in-app billing services markets, that Google did anticompetitive things in those markets, and that Epic was injured by that behavior. They decided Google has an illegal tie between its Google Play app store and its Google Play Billing payment services, too, and that its distribution agreement, Project Hug deals with game developers and deals with OEMs were all anticompetitive.
Google affairs and public policy vp Wilson White said the company plans to appeal the verdict, and that “The trial made clear that we compete fiercely with Apple and its App Store, as well as app stores on Android devices and gaming consoles.” You can read theirfull statement further down.
In a post on its company blog, Epic Games said, “Today’s verdict is a win for all app developers and consumers around the world. It proves that Google’s app store practices are illegal and they abuse their monopoly to extract exorbitant fees, stifle competition and reduce innovation.”
Mind you, we don’t know what Epic has actually won quite yet — that’s up to Judge James Donato, who’ll decide what the appropriate remedies might be. Epic never sued for monetary damages; it wants the court to tell Google that every app developer has total freedom to introduce its own app stores and its own billing systems on Android, and we don’t yet know how or even whether the judge might grant those wishes. Both parties will meet with Judge Donato in the second week of January to discuss potential remedies.
Source: https://www.theverge.com/23994174/epic-google-trial-jury-verdict-monopoly-google-play