Epic Games, the creators of the popular video game “Fortnite,” have gained the support of 35 state attorneys general, including Texas Attorney General Ken Paxton, in their legal battle against Apple.
Epic Games filed a lawsuit against Apple in August 2020, alleging that the company violated state and federal antitrust laws with its practices relating to the iOS App Store.
The App Store blocks third-party companies, like Epic Games, from using their own platform to receive payments. Instead, all purchases must be made in-app through the App Store, from which Apple takes a 30% cut.
Epic Games also wanted the court to rule Apple had an illegal monopoly as the only seller of iOS apps.
In September 2021, the United States Court of Appeals for the Ninth Circuit ruled in favor of Epic, stating that Apple must allow third-party companies to direct users to their own payment platforms. However, the court also ruled that Apple was not a monopoly and did not need to allow other app stores to be installed on iPhones.
Apple celebrated the initial ruling saying in a statement that it “affirmed what we’ve known all along – the App Store is not in violation of antitrust law.”
“Apple faces rigorous competition in every segment in which we do business, and we believe customers and developers choose us because our products and services are the best in the world,” said Apple in their statement.
Both parties are appealing separate parts of the ruling, so the final verdict is yet to take effect.
Paxton and the bipartisan group of 34 other attorneys general allege the court made a mistake in its ruling.
“Big tech companies like Apple should not have the power to monopolize an industry and prevent consumers from choosing their preferred technology app through unethical business practices,” Paxton said in a news release, “I will not allow major corporations to undermine the rule of law while misleading Texans in the process.”
Meanwhile, Epic CEO Tim Sweeney vowed to continue the court battle.
“Today’s ruling isn’t a win for developers or for consumers,” Sweeney tweeted. “Epic is fighting for fair competition among in-app payment methods and app stores for a billion consumers.”
The U.S. Department of Justice has also filed its own amicus brief supporting Epic Games. The cover sheet for the DOJ’s brief reads that it is “formally in support of neither party but [is] practically supporting some of the most important elements of Epic’s appeal.”
Epic Games also filed a lawsuit against Google on the same day it sued Apple for its similar practices with the Google Play app store for Android phones.
Google countersued in October 2021, alleging that Epic violated its Google Play store contract. That case is still ongoing.
In a comment to BBC News, Apple said it is “optimistic that the ruling will be affirmed on appeal, and that Epic’s challenge will fail.”
“We remain committed to ensuring the App Store is a safe and trusted marketplace for consumers and a great opportunity for developers,” the tech company added.
