The US Supreme Court has declined to hear appeals from both Epic Games and Apple in their hugely costly and protracted legal battle over Apple’s App Store fees – a move that will likely frustrate both companies but grant Epic a partial victory produces.
According to Reutersthe Supreme Court judges gave no reason not to hear the appeals.
Epic and Apple have been at war for years over Apple’s refusal to allow developers to bypass the App Store for downloads and in-app purchases on iPhones and iPads. Apple is reportedly cutting 30% on all purchases made through its store (as are other platform holders like Nintendo and Valve). Epic (which has filed a similar case against Google, with more success) claims this is anti-competitive and violates antitrust laws. The legal battle has led to Fortnite has been unavailable on iOS devices since August 2020.
The Supreme Court’s refusal to join in effectively affirms a 2021 decision by U.S. District Judge Yvonne Gonzalez Rogers, which was subsequently upheld in 2023 by the 9th U.S. Circuit Court of Appeals. The decision rejected Epic’s claims that Apple was acting as an illegal monopoly, but ruled that Apple broke the law by not allowing developers to include links to make payments on the Internet, outside Apple’s ecosystem.
If developers were to bypass the App Store for payments, it could cost Apple a fortune in revenue. Bloomberg reports that in-app spending is expected to reach $182 billion by 2024. Apple shares fell 2.6% on the news.
Even if it’s not the landslide victory Epic wanted, allowing developers to offer alternative options to in-app payments is an important step in opening up iOS to more competition. And this is just the beginning: Apple and Google’s app store practices face significant antitrust challenges in the European Unionat.
Microsoft, for example, sees the opening of Android and iOS as a done deal. Are planning to launch a mobile store for games under the Xbox brand, in which the acquisition of Activision Blizzard will play a key role.