Epic Games CEO Tim Sweeney has announced further legal action against Apple, following a recent setback in the US Supreme Court. This decision comes after the Court dismissed attempts by both parties to appeal a 2021 ruling from a California court regarding the Epic vs. Apple antitrust case.
The legal battle began in August 2020 when Apple revoked Epic’s Fortnite developer account. This action blocked Fortnite from Apple devices after Epic bypassed Apple’s standard payment systems in its iOS app, avoiding the 30 percent fees imposed by Apple.
In September 2021, Judge Gonzalez-Rogers largely ruled against Epic, finding insufficient evidence of Apple holding a monopolistic position. However, the judge did agree with Epic on one point, ruling that Apple’s restrictions on developers linking to external payment options (anti-steering) were anti-competitive under state law.
Subsequent appeals by both companies were unsuccessful. The US Ninth Circuit Court of Appeals upheld the 2021 verdict. Both Epic and Apple then sought the Supreme Court’s intervention, which was recently denied. The Supreme Court refused Apple’s appeal against the anti-steering decision and dismissed Epic’s challenge regarding Apple’s compliance with federal antitrust laws, providing no explanation for these decisions.
Following the Supreme Court’s decision, Tim Sweeney expressed his disappointment on social media, lamenting the missed opportunity to open iOS to competing stores and payment methods. He labeled the outcome as “sad for all developers.”
Apple has since been compelled to allow iOS developers to incorporate alternative purchasing methods in their apps. However, Apple is enforcing a 27 percent commission on sales made through these external links, claiming it to be a fair charge for the value they provide. Additionally, Apple introduced a full-screen notification for users, cautioning them about the security and privacy of external purchases.
Sweeney criticized Apple’s 27 percent fee as an “anticompetitive tax” and the warning message as a “scare screen” that disadvantages developers. He declared Epic’s intention to challenge Apple’s approach in District Court, showing no signs of backing down from the ongoing dispute.
This continued legal pursuit occurs amid internal changes at Epic, including a significant layoff of 900 employees due to financial issues. Despite these challenges, Epic, in partnership with Microsoft, has kept Fortnite accessible to iOS users through cloud streaming and continues to introduce new content and modes in the game.
Meanwhile, Apple faces additional legal battles outside the US, particularly with the EU antitrust regulators. The European Union, spurred by a complaint from Spotify, is scrutinizing Apple’s anti-steering rules for potentially violating laws against unfair trading practices.
