Apple has lost a new key ruling in their landmark case vs. Epic Games that will benefit not only Epic, but Xbox and other game companies.
As reported by The Verge, California district judge Yvonne Gonzalez Rogers has ruled that Apple is no longer allowed to
- Impose “any commission or any fee on purchases that consumers make outside an app”
- Restrict developers’ style, formatting, or placement of links for purchases outside of an app
- Block or limit the “use of buttons or other calls to action”
- Interfere with consumers’ choice to leave an app with anything beyond “a neutral message apprising users that they are going to a third-party site”
This is the latest chapter in this case that started in 2020, the same case which Epic created the #FreeFortnite PR campaign for. Judge Rogers initial decision on this case in 2021 was more favorable to Apple than Epic, but these new developments come from both Epic’s appeal, and huge mistakes on Apple’s part.
Part of that 2021 ruling required Apple to allow developers to offer payment options outside the App Store, and let them guide users to those options. This ruling would allow these developers to bypass the 30 percent cut that Apple takes from App Store purchases.
However, Apple’s implementation skirted the word of Judge Rogers’ ruling, and they even went so far as to charge a 27 percent commission on those payments. To quote Judge Rogers:
“In the end, Apple sought to maintain a revenue stream worth billions in direct defiance of this Court’s Injunction.”
For his part, Epic Games CEO Tim Sweeney made these statements:
“NO FEES on web transactions. Game over for the Apple Tax.
Apple’s 15-30% junk fees are now just as dead here in the United States of America as they are in Europe under the Digital Markets Act. Unlawful here, unlawful there.
4 years 4 months 17 days.
We will return Fortnite to the US iOS App Store next week.
Epic puts forth a peace proposal: If Apple extends the court’s friction-free, Apple-tax-free framework worldwide, we’ll return Fortnite to the App Store worldwide and drop current and future litigation on the topic.”
For their part, Apple confirmed they will appeal this decision once again, but until they get a more favorable ruling from Judge Rogers or a higher court, Fortnite seems set to return in terms that benefit Epic Games, and more importantly, Apple consumers.
Given their parallel interest in this case, we expect that Microsoft will soon be making a similar announcement as well. After Epic won a similar ruling vs. Google, Xbox boss Sarah Bond made preparations to make the Xbox App – including streaming games – available on Android. Google appealed that decision so Sarah’s plans were halted, but she may now make these arrangements for the Xbox App on Apple devices instead.
