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Forums - Gaming Discussion - Epic vs Apple- Judge rules partly in favor of both Epic and Apple, but mostly Apple

https://www.theverge.com/2021/9/10/22662320/epic-apple-ruling-injunction-judge-court-app-store

Apple is "permanently restrained and enjoined from prohibiting developers from including in their apps and their metadata buttons, external links, or other calls to action that direct customers to purchasing mechanisms, in addition to In-App Purchasing and communicating with customers through points of contact obtained voluntarily from customers through account registration within the app." In short, iOS apps must be allowed to direct users to payment options beyond those offered by Apple.

Epic was in violation of their contract when they allowed Fortnite users to pay them directly instead of going through Apple, and must pay back Apple 30% of what they earned during the time period in question (roughly $3.5m).

“The relevant market here is digital mobile gaming transactions, not gaming generally and not Apple’s own internal operating systems related to the App Store,” Judge Gonzalez-Rogers wrote, “the court cannot ultimately conclude that Apple is a monopolist under either federal or state antitrust laws,” she continued. “Nonetheless, the trial did show that Apple is engaging in anti-competitive conduct under California’s competition laws.”

Apple's statement:

Epic CEO Tim Sweeney's statement:

Last edited by shikamaru317 - on 10 September 2021

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Sounds like Apple won.



Apple definitely came out the winner on this since Epic couldn't prove Apple was a monopoly, and is now actually having to PAY Apple.

There could be repercussion's towards Apple later on due to the last statement by the judge, but that won't be for a long time, and only for 1 state.



Jpcc86 said:

Sounds like Apple won.

Yes, they did. Epic wasn't able to reach any of their goals, and they lost Fortnite on iOS most likely forever. I doubt Apple will agree to return it even if Epic agrees to abide all App Store rules like they did before



 

Epic was never going to win this but at least they drew blood.



http://www.youtube.com/watch?v=F1gWECYYOSo

Please Watch/Share this video so it gets shown in Hollywood.

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Sweeney's comments are smug as usual. Does their own Epic Games Store on the PC pass on savings to consumers? I don't think so.



Legend11 correctly predicted that GTA IV (360+PS3) would outsell SSBB. I was wrong.

A Biased Review Reloaded / Open Your Eyes / Switch Shipments

RolStoppable said:

Sweeney's comments are smug as usual. Does their own Epic Games Store on the PC pass on savings to consumers? I don't think so.

It does ensure exclusivity to Epic Games Store, though :)



gtotheunit91 said:
RolStoppable said:

Sweeney's comments are smug as usual. Does their own Epic Games Store on the PC pass on savings to consumers? I don't think so.

It does ensure exclusivity to Epic Games Store, though :)

Indeed, another shining example of how consumer-friendly Epic is.



Legend11 correctly predicted that GTA IV (360+PS3) would outsell SSBB. I was wrong.

A Biased Review Reloaded / Open Your Eyes / Switch Shipments

Here is the court document.

From page 68:

Under all models, Apple would be entitled to a commission or licensing fee, even if IAP was optional.

From page 169:

Accordingly, a nationwide injunction shall issue enjoining Apple from prohibiting developers to include in their:
Apps and their metadata buttons, external links, or other calls to action that direct customers to purchasing mechanisms, in addition to IAP.
Nor may Apple prohibit developers from:
Communicating with customers through points of contact obtained voluntarily from customers through account registration within the app.

From page 180:

G. Remedies
The relief to which Apple is entitled is that to which Epic Games stipulated in the event that the Court found it liable for breach of contract, namely:
(1) damages in an amount equal to (i) 30% of the $12,167,719 in revenue Epic Games collected from users in the Fortnite app on iOS through Epic Direct Payment between August and October 2020, plus (ii) 30% of any such revenue Epic Games collected from November 1, 2020 through the date of judgment; and
(2) a declaration that (i) Apple’s termination of the DPLA and the related agreements between Epic Games and Apple was valid, lawful, and enforceable, and (ii) Apple has the contractual right to terminate its DPLA with any or all of Epic Games’ wholly owned subsidiaries, affiliates, and/or other entities under Epic Games’ control at any time and at Apple’s sole discretion.666

The second one means that the agreement between Apple and Epic remains terminated and Fortnite remains off the App store, and can terminate its agreements with Epic, including the ones regarding development of the Unreal Engine

Epic is going to appeal the decision.

An Epic spokesperson said the company is appealing the ruling. Apple says it is "considering all legal options."



I think this is pretty huge for Epic and other developers as a whole. I think everyone knew that Epic wasn't going to win the monopoly nonsense or being able to get their store on iOS. But the fact that they can now direct users to use their own payment platform for in-app purchases is nuts. The most popular mobile games these days all have in-app purchases with Gacha based systems and what not. And Apple gets 30% of each transaction. Now, app developers can get users to do their in-app purchasing through their own payment platforms which means Apple will no longer be getting the 30% of each transaction.

Considering how popular Free to Play games are with in app purchases, that's nuts! If Apple lets Fortnite back in with these rules, Epic would make the money they owe Apple in no time and it will be pretty big implications for the rest of the industry. Even games like Call of Duty have in app purchases for their battle pass and such.

But I am sure it will get appealed.

Last edited by Captain_Yuri - on 10 September 2021

             

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