Judge orders Apple to change its App Store practices in long-awaited decision in antitrust trial
Source: Washington Post
In a long awaited decision, a federal judge has ordered Apple to substantially alter its business model, forcing Apple to allow its developers to “steer” customers away from Apple’s payment processing service, which collects a 30 percent fee on most digital transactions. Apple’s current App Store policies prohibit developers from telling customers inside their apps about alternative payment options or providing links to outside websites where customers can sign up for subscriptions or purchase digital goods and circumvent Apple’s fees.
Epic had asked the judge for more substantial changes, but the judge ruled against Epic on those claims and ordered Epic to pay Apple a fee for breaching its contract with Apple. “Given the trial record, the Court cannot ultimately conclude that Apple is a monopolist under either federal or state antitrust laws,” according to the decision. “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.”
Apple could appeal the decision. Epic Games could also file an appeal in hopes for a broader victory. Epic and Apple were both unavailable for immediate comment. Apple and Epic Games have been waiting since May for a decision in a blockbuster antitrust trial. On Friday, both sides could claim at least a partial victory in a 185-page ruling handed down by U.S. District Judge Yvonne Gonzalez Rogers.
The decision, which could still be appealed, hinged on the question of “market definition.” Epic argued that Apple’s App Store was in itself a market, over which Apple maintains a monopoly. Apple argued that its app store has competition, not just from Google’s Android Play Store, but from video game consoles and other forms of media and entertainment.
Read more: https://www.washingtonpost.com/technology/2021/09/10/apple-epic-decision-judge-market-monopoly/
Full headline: Judge orders Apple to change its App Store practices in long-awaited decision in antitrust trial with Fortnite maker Epic Games
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