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Apple Largely Prevails in Appeal of Epic Games’ App Store Lawsuit

A federal appeals court ruled Monday that Apple does not have a monopoly in the mobile gaming market, upholding a 2021 lower court ruling, giving Apple a majority victory in a lawsuit filed by Epic Games. brought.

A three-judge panel of the U.S. Court of Appeals for the Ninth Circuit ruled, 2 to 1, that Apple’s strict control over the App Store did not violate federal antitrust law. . Some app developers say the multi-billion dollar business’s rigid policies stifle competition and eat into profits.

“There is a lively and important debate about the role of market-powered online trading platforms in our economy and democracy,” the judge wrote in his judgment on page 91. was generally maintained at the status quo. “But our job as the Federal Court of Appeals is not to settle that argument, and we cannot even try to do so.”

While the judge sided with Apple on most of Epic’s claims, the judge ruled by banning app developers from directing customers to payment methods other than the App Store, where Apple charges a 30% fee. I also agree that I am violating California’s unfair competition laws. Apple has indicated that it may further appeal the ruling.

If the decision is upheld, app developers who sell subscriptions and digital services through iPhone apps will be allowed to direct customers to external websites to complete purchases and avoid Apple’s fees. There is a possibility.

“Today’s decision reaffirms Apple’s overwhelming victory in this case, with nine out of 10 claims finding in Apple’s favour,” Apple said in a statement. .

Epic did not immediately respond to a request for comment.

Epic, which makes the popular game Fortnite, began a dispute with Apple in 2020 when it began offering Fortnite players discounts for using Epic’s payment system instead of going through Apple or Google. This violates both companies’ app store policies. Apple and Google have removed Fortnite from their app stores, and Epic has sued them.

A three-week trial in U.S. District Court in Oakland, California, provided a glimpse into the economics of Apple’s App Store, with Tim Cook running for the company’s first CEO position. Both Apple and Epic have appealed the judge’s ruling and initiated extended legal proceedings.

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