The Supreme Court on Jan. 16, declined to review separate appeals in the long-running antitrust case between Apple and Epic Games, the developer of the popular video game Fortnite, leaving in place a lower court ruling requiring Apple to make changes to its iOS App Store rules and allow developers to steer customers to alternative payment methods.
The Supreme Court did not state why it declined to review the appeals.
However, the decision by the nation’s highest court allows the changes from earlier decisions to go into effect and means that Apple will now allow outside payment options on its U.S. App Store, and app makers selling to American customers can add links and buttons inside their apps that bring users out to a payment processing page, thus bypassing Apple’s own payment system.
Still, the iPhone maker said it would collect commissions ranging from 12 percent to 27 percent from developers that opt out of Apple’s own system to prevent them from “free-riding” on the software system that powers its iPhones and iPads.
The appeals stem from a lawsuit filed by Epic Games against Apple in August 2020 after it implemented its own direct payments method allowing users to download Fortnite’s virtual currency as an alternative to Apple’s in-app purchases.
Apple typically takes a 30 percent cut in commission for in-app purchases. As a result of Epic Games’ alternative payment option, the tech giant promptly pulled the game from the App Store, prompting Epic Games to file a lawsuit.
In its lawsuit, the game maker accused the technology company of using anti-competitive practices by requiring consumers to get apps through its App Store and buy digital content inside an app using its own system.
‘Basic Disagreement Over Money’
Apple countered that Epic Games had acted on its own accord to break the App Store agreements that it had signed, arguing that Epic Games had sought to avoid paying commission fees charged for in-app purchases by Apple.
“Epic’s lawsuit is nothing more than a basic disagreement over money,” Apple said in a legal filing at the time, CNBC reported. “Although Epic portrays itself as a modern corporate Robin Hood, in reality, it is a multi-billion dollar enterprise that simply wants to pay nothing for the tremendous value it derives from the App Store.”
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