An ‘Epic’ ruling
Apple is not an illegal monopoly but has engaged in illegal anti-competitive conduct, a California federal judge ruled Friday in the high-profile case brought by Epic Games.
The verdict: Judge Yvonne Gonzalez Rogers, an Obama appointee, ruled that “the court does not find that it is impossible,” but rather that Epic failed to demonstrate that Apple is “an illegal monopolist.”
“Nonetheless, the trial did show that Apple is engaging in anti-competitive conduct under California’s competition laws,” the judge said in the decision.
Gonzalez Rogers also issued an injunction “permanently” restraining Apple from prohibiting developers from including external links directing customers to options to make purchases outside of the in-app payment system.
Epic, the developer behind the popular Fortnite game, alleged Apple’s App Store rules are anti-competitive. The company said Apple limited developers’ ability to direct consumers to alternative payment methods, collecting up to 30 percent commission fees.
Apple’s take: “Today the Court has affirmed what we’ve known all along: the App Store is not in violation of antitrust law,” Apple said in a statement.
“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. We remain committed to ensuring the App Store is a safe and trusted marketplace that supports a thriving developer community and more than 2.1 million U.S. jobs, and where the rules apply equally to everyone,” the company added.
Washington weighs in: Top Democrats on the House and Senate antitrust panels said the ruling shows the need for revamped federal antitrust laws.
“This ruling reaffirms what we heard in our Senate hearing last spring: app stores raise serious competition concerns. While the ruling addresses some of those concerns, much more must be done. We need to pass federal legislation on app store conduct to protect consumers, promote competition, and foster innovation,” Sen. Amy Klobuchar (D-Minn.) said in a statement.
“Today’s decision is even further evidence that Congress must enact rules of the road to ensure free and fair competition online. While this decision includes some relief for consumers, app developers, startups, and other innovators, it is clear that courts continue to narrowly interpret the antitrust laws in favor of monopolies and against consumers, workers, and small businesses,” House Judiciary Chairman Jerry Nadler (D-N.Y.) and antitrust subcommittee Chair David Cicilline (D-R.I.) said in a joint statement.
GOP antitrust subcommittee members in the House and Senate also used the decision to boost the proposal to further regulate app stores.
“This ruling is a small step in the right direction. That app developers can communicate directly and not forced to use Apple and Google’s in-app purchasing is a welcome outcome. However, Apple and Google still have monopoly power over app developers,” Rep. Ken Buck (R-Colo.) and Sen. Marsha Blackburn (R-Tenn.) said in a joint statement.
