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A US Judge orders Epic Games to pay Apple damages for Breach of Contract and Apple to allow outside payment methods for Mobile Apps

1 cover - Epic-Games v apple

 

On August 30th, Patently Apple posted a report titled "South Korea may become the first country to pass a law Today ending Apple and Google’s domination of mobile payments & Australia could Follow." Today we're learning that Apple has been ordered by a court to allow developers to steer consumers to outside payment methods for mobile apps.

 

U.S. District Judge Yvonne Gonzalez Rogers granted an injunction sought by Epic Games Inc. Apple is expected to appeal, setting the stage for the fight to carry on for at least another year and possibly make its way to the U.S. Supreme Court.

 

On the flipside, the Judge ordered Epic Games to pay damages to Apple for breach of contract.

 

2 Epic Games  found to have breached contract with Apple

 

Further, according to CNBC: “While the Court finds that Apple enjoys considerable market share of over 55% and extraordinarily high profit margins, these factors alone do not show antitrust conduct. Success is not illegal.” U.S. District Judge Yvonne Gonzalez Rogers wrote.

 

Better yet, the Judge stated that "Epic Games failed in its burden to demonstrate Apple is an illegal monopolist."

 

Today's ruling by U.S. District Judge Yvonne Gonzalez Rogers is a warning shot across the bow for Apple as legislators and regulators examine the role Apple and other big tech companies have as gatekeepers to the digital economy. On Wednesday Patently Apple posted a report on this titled "Senator Klobuchar is Hellbent on pushing the 'Open App Markets Act' to end Apple and Google’s twin monopolies."

 

The evidence outlined in the three-week Epic trial in Oakland, California, cast a harsh light on tech’s power and will help build the larger case against Apple and other technology giants including Alphabet Inc., Amazon.com Inc. and Facebook Inc.

 

Epic argued at trial that Apple exercises control over the market for mobile-app distribution on iPads and iPhones to juice profits from commissions on payments made for virtual goods inside apps. Apple denied abusing its power, maintaining that it competes in a market for digital game transactions that occur on numerous devices including video game consoles. For more, read the full Bloomberg report.

 

Lastly, Bloomberg's report stated that "The outcome of the trial won’t be the last word from Epic Games in its global campaign against the world’s most valuable company." That may be true, though for today, it must be pointed out that Apple has denied calls from Fortnite-maker Epic Games to reinstate its developer account on South Korea's App Store in efforts to re-release its popular multiplayer game after the country passed a law that forces the iPhone maker to allow third-party payment systems for in-app transactions.

 

More specifically, Apple maintains it’s under no obligation to let Epic in the App Store at all. An Apple spokesperson in a statement to The Verge stated: "As we’ve said all along, we would welcome Epic’s return to the App Store if they agree to play by the same rules as everyone else. "Epic has admitted to breach of contract and as of now, there’s no legitimate basis for the reinstatement of their developer account.”

 

10.0F - Apple News

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