Tech Giant Appeals Ruling on Anti-Steering Policy in Bold Move

Tech Giant Appeals Ruling on Anti-Steering Policy in Bold Move

The ongoing legal battle between Apple and Epic Games has reached the US Supreme Court. In a recent development, Apple has filed an appeal with the US Supreme Court, seeking a reconsideration of the ruling against its anti-steering rules. These rules prohibit apps from using alternative payment methods that bypass the App Store.

The Background Story

In 2020, Epic Games began selling Fortnite’s V-Bucks directly to customers, bypassing the App Store’s approval process. This move didn’t sit well with Apple, as they receive a 30% cut of all app sales on the platform. Consequently, Fortnite was removed not only from the App Store but also from Google’s Play Store.

Epic Games responded by filing an anti-trust lawsuit against Apple, alleging that the company was monopolizing the mobile platform and stifling competition. However, the US District Court of California only ruled in favor of Epic’s claims against Apple’s anti-steering policies, falling short of proving Apple’s anti-competitive behavior.

Recent Developments

Both Apple and Epic Games have previously petitioned the US Ninth Circuit Court of Appeals to overturn the initial ruling of the US District Court of California, but their efforts proved futile. A second petition was filed on June 30th. Apple has now taken the matter to the Supreme Court of the United States, appealing against the anti-steering policy. Apple argues that

“The district court issued a sweeping injunction prohibiting Apple from enforcing its anti-steering rules against all developers of iOS apps offered for distribution in the United States, even though the sole named plaintiff (Epic Games, Inc.) did not seek or obtain class certification, and did not prove that an injunction running in favor of non-parties was necessary to make it whole.”

The petition further states,

“the panel did not cite any cases or explain why these supposed harms to Epic and its subsidiaries would permit an injunction affecting the rights of thousands of non-party app developers, which have no affiliation or relationship with Epic. Id.”

Epic Games CEO Tim Sweeney and the Free Fortnight campaign have previously criticized Apple and Google for their “exorbitant” 30% commission on app sales. However, it remains to be seen how Epic Games will respond to Apple’s latest petition.

 

Reference

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