BREAKING: Judge Rules ThatApple Is Not A Monopoly, But Must Allow Alternate Payment Methods For Apps… And That Epic Must Pay Up

We have a decision in the Apple vs Epic legal battle. Here’s the highlights:

  • Apple must allow developers to include alternate purchase links in apps on the App Store. Apple has 90 days to comply with this order. On this count, Epic won.
  • Epic needs to pay damages equal to “30% of the $12,167,719 in revenue Epic games collected” through Epic Direct Payment, plus any revenue collected through November 1 to date of judgement, plus interest. That’s because the judge ruled that Epic was in breach of Apple’s contract clauses. Thus Apple won on this count.
  • The judge was clear that Apple is not a monopoly. The judge said that “success is not illegal” and that Epic could not demonstrate that Apple was engaging in monopolistic behavior. On this count, Apple won.

Back to the first point that I made. Apple had already announced that it will allow what it calls “Reader” apps (Netflix for example) to have alternate methods of payments because the Japanese investigated Apple and Apple cut a deal to make that go away. But the way that this order is written, it means Apple must allow developers of all applications to link out to third-party payment solutions. Most notably, this includes the highly lucrative games category. That will affect Apple’s bottom line. Thus I would not be surprised if Apple appeals this.

From the Epic standpoint, they can’t be happy. They have to cut a rather big cheque. Plus they couldn’t prove that Apple was a monopoly. The only thing that could be considered a win is that they can steer users to their payment system. But I am not sure if that is enough for them. Also, Apple doesn’t have to let them back onto the App Store as they violated their contract with Apple. That for sure will not make them happy.

I would recommend staying tuned as I am sure that this is not over. But in the meantime, here’s the relevant legal documents for your review:

One Response to “BREAKING: Judge Rules ThatApple Is Not A Monopoly, But Must Allow Alternate Payment Methods For Apps… And That Epic Must Pay Up”

  1. […] Straight Talk About Information Technology From A Nerd Who Speaks English « BREAKING: Judge Rules ThatApple Is Not A Monopoly, But Must Allow Alternate Payment Methods For App… […]

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