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Tuesday, April 23, 2024
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Law

Apple Appeals Ruling in Epic Games Trial

  • The App Store generates about $19 billion annually for Apple.
  • The store makes most of its money from in-app purchases inside free-to-download games.
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Despite initially calling the Sept. 10 ruling in the Epic Games v. Apple trial “a resounding victory,” Apple has now appealed the ruling.

The App Store generates about $19 billion annually and makes most of its money from in-app purchases inside free-to-download games. The ruling only impacts U.S.-based companies, which account for approximately one-third of global App Store revenue.

Judge Yvonne Gonzalez Rogers ruled in favor of Apple in nine of the 10 claims Epic brought against the company, but the tech giant is still seeking a stay that would put a freeze on app developers exploring alternative payment methods.

Epic previously filed its own appeal on Sept. 12, after Judge Gonzalez Rogers determined that the “Fortnite” maker breached its contract with Apple.

  • Apple isn’t required to restore “Fortnite” to the App Store.
  • Epic must pay damages to Apple equaling $3.65 million for 30% of revenue from Epic’s Direct Payment system in “Fortnite” on iOS.

Should Apple win the stay, any rule change that would allow developers to circumvent App Store fees of 15% to 30% may not take effect until appeals in the case have finished — which could take years.

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