The Supreme Court allows a court order to take effect that could cost Apple billions of dollars
WASHINGTON — The Supreme Court on Tuesday allowed an injunction to take effect that could loosen Apple’s grip on its lucrative iPhone app store and potentially affect billions of dollars in revenue a year.
The justices rejected Apple’s appeal of lower court rulings that found some of Apple’s app store rules for apps purchased on more than 1 billion iPhones constitute unfair competition under California law.
The appeal stemmed from an antitrust lawsuit filed by Epic Games, maker of the popular video game Fortnite. Epic lost its broader claim that Cupertino, California-based Apple violated federal antitrust law, and the judges also rejected Epic’s appeal on Tuesday.
But in rejecting Apple’s plea, the court lifted an order allowing app developers across the US to include links to payment options other than its own in iPhone apps. That change would make it easier for developers to avoid Apple’s commissions.
Epic, based in Cary, North Carolina, had alleged that Apple’s app store ā which launched in 2008, a year after the first iPhone went on sale ā had turned into an illegal monopoly that stifles innovation and competition while costing billions of dollars generated profit. for Apple.
Epic tried to offer an alternative way to get its mobile app, in an effort to avoid developer fees on its app store, which collects a 15% to 30% commission on subscriptions and other digital transactions.
Apple has kicked Epic out of its app store after it tried to circumvent restrictions that Apple says protect the security and privacy of iPhone users while recouping some of the investment that powers one of the world’s most ubiquitous devices.
Last month, Epic won a jury trial against Google and its Play Store for apps on Android phones in a lawsuit that mirrors its action against Apple. A federal judge has yet to determine what changes Google will have to make to its Play Store.