The Supreme Court on Tuesday allowed a court order to take effect that would loosen Apple’s grip on its lucrative iPhone app store, and potentially affect billions of dollars in revenue a 12 months.
The justices rejected Apple’s appeal of lower-court rulings that found a few of Apple’s app store rules for apps purchased on greater than 1 billion iPhones constitute unfair competition under California law.
The appeal stemmed from an antitrust lawsuit filed by Epic Games, maker of the favored Fortnite video game.
Epic lost its broader claim that Cupertino, Calif.-based Apple was violating federal antitrust law, and the justices also rejected Epic’s appeal Tuesday.
But in turning away Apple’s plea, the court lifted a hold on an order to permit app developers throughout the US to insert links to other payment options besides its own inside iPhone apps.
That change would make it easier for developers to avoid paying Apple’s commissions.
Epic filed an antitrust lawsuit in 2020, accusing Apple of acting as an illegal monopolist by requiring consumers to get apps through its App Store. REUTERS
Epic, based in Cary, NC, had claimed that Apple’s app store — which was launched in 2008, a 12 months after the primary iPhone went on sale — had become an illegal monopoly that stifles innovation and competition while generating billions of dollars in profit for Apple.
Epic tried to supply an alternate method to get its mobile app, attempting to evade the developer fees contained in the app store, which collects a commission of 15% to 30% on subscriptions and other digital transactions.
Apple ousted Epic from its app store after it tried to get around restrictions that Apple says protect the safety and privacy of iPhone users while also helping to recoup among the investment that powers one among the world’s most ubiquitous devices.
The court lifted a hold on an order to permit app developers throughout the US to insert links to other payment options besides its own inside iPhone apps. AFP via Getty Images
Last month, Epic won a jury trial against Google and its Play Store for apps on Android phones in a lawsuit mirroring its motion against Apple.
A federal judge still must determine what changes Google can have to make to its Play Store.
Apple’s stock fell greater than 1% on Tuesday.
