Dan Howley, thanks.In December 2018, Epic Games, makers of Fortnite and the Unreal game development engine, launched the Epic Games Store. But like you said, it sounds like this is very far from being over. Epic Games' "Fortnite", a huge game.īut this can also set a precedent then if it moves forward and Epic ends up winning in the end for other video game companies to be able to offer these kind of callouts buttons links to be able to purchase things off of Apple's App Store, cutting into Apple's bottom line. The big reason why Epic is important in this, just to give you a little bit of background, is that games are the biggest part of sales through the App Store. And it comes as frankly the services arm of Apple continues to do well. So this isn't something that is going to go away for quite a while. Over in the EU, the company is going to have to basically redo its App Store rules as they say over there that Apple has to provide a means for third-party app developers to be able to provide ways for them to- customers rather, to purchase apps on the App Store, not just through Apple's own Apple payment process. And you're not going to have this put into place now. We want them to do it now.īut Justice Kagan basically said, no, they're going to be able to wait. Now, this win today for Apple comes after Epic had tried to lobby the Supreme Court and say, look, we don't want Apple to have to wait or to be able to wait for their time before the court to put this into effect. But they put a hold on forcing the company to put the rules into place so that they could go to file a appeal with the Supreme Court. Now, the Ninth Circuit court had upheld that saying that Apple did have to provide that. You would be taken off in the case of Fortnite to Epic's site where they could offer potentially a lower price than what Apple would charge. So the company had to allow companies that work through the App Store to provide a means for their customers to find ways to subscribe to their services or purchase their apps on their own sites, meaning that there would be a link or a button saying buy here. But the judge in that case had said that Apple's antisteering rules weren't allowed. They weren't found guilty of any anticompetitive behavior. And companies like Epic, Spotify, and others have said that that's unfair. You'll remember that if a company sells an app through the App Store, they're charged between 15% and 30% of the sale price for the use of the App Store itself. This goes back to the Epic Games lawsuit that that company had filed against Apple claiming that it violated antitrust laws in preventing companies from being able to offer third-party payment options in the App Store. At least for today, a big win for Apple, right, Dan?ĭAN HOWLEY: At least for today, yeah. Dan Howley has been following this legal back and forth. The Supreme Court's saying the tech giant can keep its App Store payment rules at least for now. Epic Games is facing a setback in its legal battle against Apple. Yahoo Finance Tech Editor Dan Howley joins the Live show to discuss the ongoing lawsuit and what this means for the future of Apple's app store rules. The Supreme Court rules that Apple ( AAPL) can keep its app store payment rules for now. Epic Games is facing a setback in its legal battle with Apple.
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