Epic Games v. Apple
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''Epic Games, Inc. v. Apple Inc.'' was a lawsuit brought by
Epic Games Epic Games, Inc. is an American Video game developer, video game and software development, software developer and video game publisher, publisher based in Cary, North Carolina. The company was founded by Tim Sweeney (game developer), Tim Sween ...
against
Apple An apple is a round, edible fruit produced by an apple tree (''Malus'' spp.). Fruit trees of the orchard or domestic apple (''Malus domestica''), the most widely grown in the genus, are agriculture, cultivated worldwide. The tree originated ...
in August 2020 in the United States District Court for the Northern District of California, related to Apple's practices in the iOS App Store. Epic Games specifically had challenged Apple's restrictions on apps from having other in-app purchasing methods outside of the one offered by the App Store. Epic Games's founder Tim Sweeney had previously challenged the 30% revenue cut that Apple takes on each purchase made in the App Store, and with their game '' Fortnite'', wanted to either bypass Apple or have Apple take less of a cut. Epic implemented changes in ''Fortnite'' intentionally on August 13, 2020, to bypass the App Store payment system, prompting Apple to block the game from the App Store and leading to Epic filing its lawsuit. Apple filed a countersuit, asserting Epic purposely breached its terms of contract with Apple to goad it into action, and defended itself from Epic's suit. The trial ran from May 3 to May 24, 2021. In a September 2021 ruling in the first part of the case, Judge Yvonne Gonzalez Rogers decided in favor of Apple on nine of ten counts, but found against Apple on its anti-steering policies under the California Unfair Competition Law. Rogers prohibited Apple from stopping developers from informing users of other payment systems within apps. Both Epic and Apple appealed the judgement, but in April 2023 the Ninth Circuit Court of Appeal in large part affirmed the District Court's decision. In January 2024, the Supreme Court denied the full appeals of both Apple and Epic in the case, leaving the case primarily a victory for Apple in allowing them to continue restricting app distribution to their App Store and to continue restricting in-app purchases to Apple's payment systems, but requiring Apple to allow developers to link to external websites offering alternate payment options (off-app purchases). While Apple implemented App Store policies to allow developers to link to alternative payment options, the policies still required the developer to provide a 27% revenue share back to Apple, and heavily restricted how they could be shown in apps. Epic filed complaints that these changes violated the ruling, and in April 2025 Rogers found for Epic that Apple had willfully violated her injunction, placing further restrictions on Apple including banning them from collecting revenue shares from non-Apple payment methods or imposing any restrictions on links to such alternative payment options. Though Apple is appealing this latest ruling, they approved the return of ''Fortnite'' with its third-party payment system to the App Store in May 2025. Epic also filed another lawsuit, '' Epic Games v. Google'', the same day, which challenges Google's similar practices on the
Google Play Google Play, also known as the Google Play Store, Play Store, or sometimes the Android Store (and was formerly Android Market), is a digital distribution service operated and developed by Google. It serves as the official app store for certifie ...
app store for Android, after Google pulled ''Fortnite'' following the update for similar reasons as Apple. However, that case centered more on the practices and deals that Google, as a dominant tech giant, wielded over partners to assure use of the Play Store. In December 2023, a jury ruled against Google in that it had unlawfully maintained its monopoly on the Android environment.


Background

Since 2015, Epic Games's founder and CEO Tim Sweeney had questioned the need for digital storefronts like Valve's
Steam Steam is water vapor, often mixed with air or an aerosol of liquid water droplets. This may occur due to evaporation or due to boiling, where heat is applied until water reaches the enthalpy of vaporization. Saturated or superheated steam is inv ...
, Apple's App Store for iOS devices, and Google Play, to take a 30%
revenue sharing Revenue sharing is the distribution of revenue, the total amount of income generated by the sales, sale of goods and services among the stakeholder (corporate), stakeholders or Benefactor (law), contributors. It should not be confused with profit ...
cut, and argued that when accounting for current rates of content distribution and other factors needed, a revenue cut of 8% should be sufficient to run any digital storefront profitably. While a 30% revenue cut was an industry standard across computers, consoles, and mobile platforms in 2019, Sweeney stated that higher revenue shares made sense on consoles where "there's enormous investment in hardware, often sold below cost, and marketing campaigns in broad partnership with publishers", but did not extend to open platforms like mobile devices and personal computers. Part of the reasoning for creating the
Epic Games Store The Epic Games Store is a video game digital distribution service and storefront operated by Epic Games. It launched in December 2018 as a software client, for Microsoft Windows and macOS, and online storefront. Android and iOS versions of t ...
was to demonstrate that Epic could operate at a lower commission percentage (12%). As ''Fortnite'' expanded from personal computers to other platforms with the popularity of the ''Battle Royale'' mode in 2018, Epic Games sought to bring the free-to-play game to mobile devices. When Epic first released its Android client, it offered it as a sideloaded package, rather than as a Google Play store app, as they did not want Google to take any revenue from the microtransactions in the game. However, this resulted in a number of security concerns and numerous unscrupulous clones attempting to pass themselves off as the real ''Fortnite'' game in the Google Play store, and by April 2020, Epic discontinued the sideloaded version and placed the game on the Google Play store. As Apple does not allow sideloading on iOS devices, Epic had just released the client on the App Store directly in 2018. In mid-2020, Sweeney reiterated his stance on the 30% revenue cut that Apple and Google took, ahead of a large United States Congressional hearing investigating
antitrust Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust l ...
charges on Big Tech companies, including Google, and during similar investigations of Apple in the
European Union The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...
. Sweeney said in a July ''
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'' interview that "Apple has locked down and crippled the ecosystem by inventing an absolute monopoly on the distribution of software, on the monetization of software", and "Google essentially intentionally stifles competing stores by having user interface barriers and obstruction". Sweeney further stated that "If every developer could accept their own payments and avoid the 30% tax by Apple and Google we could pass the savings along to all our consumers and players would get a better deal on items. And you'd have economic competition." After Apple stated that cloud gaming services like
Microsoft Microsoft Corporation is an American multinational corporation and technology company, technology conglomerate headquartered in Redmond, Washington. Founded in 1975, the company became influential in the History of personal computers#The ear ...
's xCloud were not allowed on the iOS platform as they would allow content that bypassed Apple's content review, Sweeney wrote "Apple has outlawed the metaverse. The principle they state, taken literally, would rule out all cross-platform ecosystems and games with user created modes: not just xCloud, Stadia, and GeForce NOW, but also ''Fortnite'', ''
Minecraft ''Minecraft'' is a 2011 sandbox game developed and published by the Swedish video game developer Mojang Studios. Originally created by Markus Persson, Markus "Notch" Persson using the Java (programming language), Java programming language, the ...
'', and ''
Roblox Roblox (, ) is an online game platform and game creation system developed by Roblox Corporation that allows users to program and play games created by themselves or other users. It was created by David Baszucki and Erik Cassel in 200 ...
''." Apple has argued that the 30% cut it takes though In-App Purchases (IAP) "reflects the immense value of the App Store" and beyond the visible features it offers developers, that cut covers "Apple's technology, tools, software for app development and testing, marketing efforts, platinum-level customer service, and distribution of developers' apps and digital content." Apple has further argued that it requires iOS apps to use its storefront to "ensure that iOS apps meet Apple's high standards for privacy, security, content, and quality" and avoid exposing iOS users to risks from alternative storefronts. Legal review of the cases identify the key issue is whether Apple's control of the iOS App Store is a monopoly or not. Epic Games has argued that Apple maintains a monopoly for iOS-enabled devices, and thus its behavior in restricting alternative payment systems and storefronts are anticompetitive. Apple contends that the marketplace that Epic participates in is multiple platforms, not just the iOS, and in that perspective, Apple does not have a monopoly.


Onset of legal action

In an interview with CNN, Sweeney stated that Epic planned out a course of action over several months prior to August 2020, codenamed "Project Liberty", aimed to force Apple and Google's hands, either to alter their store policies or to initiate legal action. As determined through the course of the trial, Epic initiated "Project Liberty" by first introducing a standard patch to ''Fortnite'' that had to be approved by Apple and Google, but which had secretly contained code that would allow users to be able to purchase the in-game currency, "V-Bucks", directly from Epic. Epic did not make mention of this feature to Apple or Google, so the patch was approved. Then, on August 13, 2020, Epic released a hotfix (which did not require prior approval) to the mobile versions, triggering visibility of this purchasing option. At the same time, Epic announced for all platforms that purchases of V-Bucks directly through Epic would be discounted by 20%. For iOS and Android users, Epic cautioned users that if they purchased through the Apple or Google storefront, they were not given this discount, as Epic said they could not extend the discount due to the 30% revenue cut taken by Apple and Google. Within hours of this hotfix going live, both Apple and Google had removed ''Fortnite'' from their storefronts stating the means of bypassing their payment systems violated their terms of service. Epic immediately filed separate lawsuits against Apple and Google for antitrust and anticompetitive behavior in the United States District Court for the Northern District of California. In 2019, Epic retained Cravath, Swaine & Moore and its tandem lawsuits were represented by
Katherine B. Forrest Katherine Bolan Forrest (born February 13, 1964) is a partner at New York law firm Paul, Weiss, Rifkind, Wharton & Garrison LLP, and a former United States district judge of the United States District Court for the Southern District of New York. ...
and led by the chair of its
antitrust Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust l ...
division, Christine A. Varney, former lead of the Antitrust Division of the U.S. Department of Justice under the Obama administration. Apple was represented in the suits by Gibson, Dunn & Crutcher partner Mark Perry. On the day the lawsuit was filed, Epic released a video called "Nineteen Eighty-Fortnite", parodying Apple's " 1984" advertisement using ''Fortnite'' assets, which Epic points out in their lawsuit had been used by Apple then to challenge the weight of
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at the time. In its suit against Apple, Epic accused Apple of antitrust behavior with its practices around the App Store and its payment system, charging that these were in violation of the federal Sherman Act and the California Cartwright Act. In its suit against Google, Epic challenged Google's past mantra of "
Don't be evil "Don't be evil" is Google's former motto, and a phrase used in Google's corporate code of conduct. One of Google's early uses of the motto was in the prospectus for its 2004 IPO. In 2015, following Google's corporate restructuring as a subsidiar ...
" and claimed that its practices around the Google Play store and its payment system violate the Sherman Act and California's Cartwright Act. Epic stated that Google's restrictions on the Android system interfered with deals for pre-loading ''Fortnite'' on phones from OnePlus and LG. They state in the claim "Notwithstanding its promises to make Android devices open to competition, Google has erected contractual and technological barriers that foreclose competing ways of distributing apps to Android users, ensuring that the Google Play Store accounts for nearly all the downloads of apps from app stores on Android devices." Epic did not seek monetary damages in either case, but instead was "seeking injunctive relief to allow fair competition in these two key markets that directly affect hundreds of millions of consumers and tens of thousands, if not more, of third-party app developers." In comments on social media the next day, Sweeney said that they undertook the actions as "we're fighting for the freedom of people who bought smartphones to install apps from sources of their choosing, the freedom for creators of apps to distribute them as they choose, and the freedom of both groups to do business directly. The primary opposing argument is: 'Smartphone markers can do whatever they want.' This as an awful notion. icWe all have rights, and we need to fight to defend our rights against whoever would deny them." Google, in response to the lawsuit, stated to ''
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'' that "For game developers who choose to use the Play Store, we have consistent policies that are fair to developers and keep the store safe for users. While ''Fortnite'' remains available on Android, we can no longer make it available on Play because it violates our policies. However, we welcome the opportunity to continue our discussions with Epic and bring ''Fortnite'' back to Google Play." By August 17, 2020, Apple had informed Epic that it would terminate its access to developers accounts and tools for the App Store and iOS and macOS by August 28, 2020. This led Epic to file a motion for a preliminary injunction to block this as well as prevent Apple from delisting ''Fortnite'' from the App Store, asserting that lack of access to the development tools for iOS and macOS would affect Unreal Engine development and subsequently impact all developers that used the engine. Apple stated in response to the request for preliminary injunction that Epic had approached them in June to ask for a special deal for Epic to operate ''Fortnite'' on the App Store to allow users to pay Epic directly, and when Apple had failed to grant them this, Epic had contacted them prior to updating the version on August 13, 2020, to state they were willingly going to violate the App Store terms. Apple further requested the court deny Epic the preliminary junction, calling the "emergency" situation one that Epic had created itself. Sweeney stated in response that as his emails in Apple's complaint said, he was looking for Apple to extend to this type of exemption to all iOS developers and not just for Epic Games. Epic filed a response to Apple's complaint with support of
Microsoft Microsoft Corporation is an American multinational corporation and technology company, technology conglomerate headquartered in Redmond, Washington. Founded in 1975, the company became influential in the History of personal computers#The ear ...
, specifically asking the court to block Apple from taking away its iOS development tool access as this would impact all developers that have used the Unreal Engine. Microsoft wrote in their support, "Denying Epic access to Apple's SDK and other development tools will prevent Epic from supporting Unreal Engine on iOS and macOS and will place Unreal Engine and those game creators that have built, are building, and may build games on it at a substantial disadvantage." On August 24, 2020, after a court hearing Judge Yvonne Gonzalez Rogers granted Epic's request to prevent Apple from taking away its developer licenses for iOS and macOS, but did not grant the preliminary injunction to overturn Apple's decision to remove ''Fortnite'' from the iOS store. Rogers wrote that the removal of the developers licenses had "potential significant damage to both the Unreal Engine platform itself, and to the gaming industry generally" and Apple "has chosen to act severely" in threatening that step. On terms of ''Fortnite'', Rogers agreed with Apple that "Epic Games has not yet demonstrated irreparable harm. The current predicament appears of its own making." Subsequently, Apple terminated Epic's iOS developer account on August 28, 2020, thereby preventing the company from uploading further material to the App Store but otherwise still being able to develop for the platform. Prior to the first hearing on September 28, 2020, Epic filed paperwork ahead of the hearing in which they intend to seek a preliminary injunction to require Apple to rehost ''Fortnite''.


Countersuit

Apple filed a countersuit against Epic on September 8, 2020. Apple asserted in their suit that Epic breached their contract and was seeking to block the use of Epic's payment system from any app, including ''Fortnite'', on the iOS storefront, and sought monetary damages to recover funds that Epic had made while their version of ''Fortnite'' was active on August 13, 2020. Apple called Epic's suit an attempt "to be part of a marketing campaign designed to reinvigorate interest in Fortnite". Judge Rogers dismissed Apple's monetary claims of theft in November 2020, stating that the claims cannot be considered "independently wrongful" of the breach of contract claims, leaving these breach claims otherwise in place.


District court


Preliminary hearing

At the first court hearing on the matter on September 28, 2020, Judge Rogers appeared likely to deny Epic's demand to require Apple to rehost ''Fortnite'' on the App Store unless Epic conforms to the App Store policy, consistent with Apple's argument that Epic itself had created the situation leading to its removal, but otherwise ready to maintain the restraining order related to the Unreal Engine and Epic's developer accounts. Judge Rogers indicated that she was in favor of a jury trial when the case would be heard, then expected to be in July 2021, stating during the hearing "I think it's important enough to understand what real people think. Do these security issues concern people or not? Are the concerns of the developers incredibly important? I think many people would feel it is. I do think that this is something for which jury insights would be important." In post-hearing filings, both Epic and Apple argued that the case should be decided by a judge rather than a jury. Judge Rogers agreed, scheduling a bench trial to commence in May 2021. In October 2020, Judge Rogers denied Epic Games's request for a temporary injunction that would require Apple to allow ''Fortnite'' in its current state (with Epic's storefront), but made permanent the injunction preventing Apple from terminating Epic's developer accounts such that it could continue to maintain the Unreal Engine for iOS and macOS systems. In her decision, Rogers stated that a key aspect of her review of the case would be Epic's contention that the App Store is unique and its arguments as to why Apple's antitrust behavior is limited to the App Store and not to the other closed systems such as Xbox Live, PlayStation Store or the
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. Rogers said that "a final decision should be better informed regarding the impact of the walled garden model given the potential for significant and serious ramifications for
Sony is a Japanese multinational conglomerate (company), conglomerate headquartered at Sony City in Minato, Tokyo, Japan. The Sony Group encompasses various businesses, including Sony Corporation (electronics), Sony Semiconductor Solutions (i ...
,
Nintendo is a Japanese Multinational corporation, multinational video game company headquartered in Kyoto. It develops, publishes, and releases both video games and video game consoles. The history of Nintendo began when craftsman Fusajiro Yamauchi ...
and
Microsoft Microsoft Corporation is an American multinational corporation and technology company, technology conglomerate headquartered in Redmond, Washington. Founded in 1975, the company became influential in the History of personal computers#The ear ...
and their video game platforms."


Pre-trial

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stated in December 2020 that it will fully support Epic Games in the lawsuit during its discovery phase. Facebook itself had been in prior conflict with Apple over its App Store policies and had amassed its own collection of information they plan to share with Epic. As part of its case, Apple had attempted to subpoena records from
Valve A valve is a device or natural object that regulates, directs or controls the flow of a fluid (gases, liquids, fluidized solids, or Slurry, slurries) by opening, closing, or partially obstructing various passageways. Valves are technically Pip ...
related to several hundred games and their sales on
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, given that Steam is a direct competitor to Epic Games's storefront in the personal computer space. Valve declined to comply with these requests, arguing that Apple's requests are overly broad and unrelated to their complaint with Epic. The judge ruled in Apple's favor, stating that Valve was not the only target of Apple's subpoenas seeking similar storefront data, and thus the request was not unreasonable.


Trial

The trial commenced on May 3, 2021. Due to the nature of the case, Judge Gonzalez Rogers required that all parties be physically present at the court, with additional steps made to account for safety due to the ongoing
COVID-19 pandemic The COVID-19 pandemic (also known as the coronavirus pandemic and COVID pandemic), caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), began with an disease outbreak, outbreak of COVID-19 in Wuhan, China, in December ...
. The trial ran for three weeks, with testimony ending on May 21, 2021 and closing arguments given on May 24, 2021. The law firm Cravath, Swaine & Moore represented Epic Games while Gibson, Dunn & Crutcher represented Apple. Among aspects covered by the trial included: * Epic Games and Apple discussed whether other apps such as ''
Minecraft ''Minecraft'' is a 2011 sandbox game developed and published by the Swedish video game developer Mojang Studios. Originally created by Markus Persson, Markus "Notch" Persson using the Java (programming language), Java programming language, the ...
'' and ''
Roblox Roblox (, ) is an online game platform and game creation system developed by Roblox Corporation that allows users to program and play games created by themselves or other users. It was created by David Baszucki and Erik Cassel in 200 ...
'' should be defined as "games" or "metaverses". Though they agreed that ''Minecraft'' is a game, they disagreed over how to define ''Roblox''. Epic argued that ''Roblox'', like ''Fortnite'', is a metaverse, while Apple argued that ''Roblox'' is a singular game and that games within it are "experiences", comparable to individual worlds within ''Minecraft''. As a result, in May 2021, ''Roblox'' immediately altered its branding to remove the word "game" from its website, replacing it with "experience" in an effort to comply with Apple's app store policies. * Apple defended its curation of content on the iOS app store, a restriction that had previously prevented cloud gaming services like GeForce Now or Google Stadia from offering a direct app on the iOS store, as each game would require approval by Apple under Apple's rules but would allow for these services to be offered through a progressive web application run through Safari or Chrome. Apple pointed to the recent addition of itch.io, an indie game storefront, to the Epic Game Store, stating that as itch.io lacked any type of moderation of content, this had allowed the Epic Game Store to effectively include a large amount of mature and adult content that was otherwise disallowed by Epic's own store guidelines, while Apple's policies require moderation of app-by-app content to prevent such a situation. Epic pointed out that it only distributed the itch.io client and was not responsible for any of the games that the client itself distributed or sold. * Apple's anti-steering policies, which prevent any app from directing or informing its users to a different storefront outside of Apple's iOS one to make purchases, were brought into question as related to potential antitrust charges. Anti-steering policies had been deemed acceptable in practice in the 2018 U.S. Supreme Court case '' Ohio v. American Express Co.'' as long as no harm was shown to either side of the
two-sided market In mathematics, specifically in topology of manifolds, a compact codimension-one submanifold F of a manifold M is said to be 2-sided in M when there is an embedding ::h\colon F\times 1,1to M with h(x,0)=x for each x\in F and ::h(F\times ...
in considering the absence of anti-steering policies. Epic attempted to argue that with Apple banning developers from directing users to alternative payment systems and storefronts, they were taking a larger share of app revenues, and thus that these anti-steering provisions should be eliminated from Apple's policies. During the trial, a number of documents that were part of evidence collected by Epic and Apple were made public during proceedings, some containing confidential information related to third parties. Some of these documents were meant to be sealed but were instead misplaced into online public court records, and revealed some of the past inner workings of the video game industry, in addition to details on Epic's financials related to the Epic Game Store. This included Epic previously approaching
Sony Interactive Entertainment Sony Interactive Entertainment LLC (SIE) is an American video game and digital entertainment company that is a major subsidiary of Japanese conglomerate Sony, Sony Group Corporation. It primarily operates the PlayStation brand of video game co ...
in early 2018 to try to convince them to allow for cross-platform play on the
PlayStation is a video gaming brand owned and produced by Sony Interactive Entertainment (SIE), a division of Japanese conglomerate Sony. Its flagship products consists of a series of home video game consoles produced under the brand; it also consists ...
consoles; Epic approaching
Microsoft Microsoft Corporation is an American multinational corporation and technology company, technology conglomerate headquartered in Redmond, Washington. Founded in 1975, the company became influential in the History of personal computers#The ear ...
to try to get them to allow free-to-play games to be played on the Xbox consoles without the need for an Xbox Live Gold paid subscription; and an unannounced game streaming service planned by
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. Judge Rogers took steps after the second day to try to make sure that appropriately sealed documents were kept out of the online public records.


Decision

Judge Rogers issued her first ruling on September 10, 2021, which was considered a split decision by law professor
Mark Lemley Mark A. Lemley (born c. 1966) is an American legal scholar known for his studies of American intellectual property law. He is currently the William H. Neukom Professor of Law at Stanford Law School and the Director of the Stanford Law School Pr ...
. Rogers found in favor of Apple on nine of ten counts brought up against them in the case, including Epic's charges related to Apple's 30% revenue cut and Apple's prohibition against third-party marketplaces on the iOS environment. Rogers did rule against Apple on the final charge related to anti-steering provisions, and issued a permanent injunction that, in 90 days from the ruling, blocked Apple from preventing developers from linking app users to other storefronts from within apps to complete purchases or from collecting information within an app, such as an email, to notify users of these storefronts. In her decision, Rogers identified that the market of concern was neither games (Apple's stance) nor Apple's App Store (Epic's stance) but digital mobile gaming transactions. Rogers identified that the demographics for mobile games was far different from computer or console games, and mobile games most often use the freemium payment model in which games are offered for free on the App Store but include additional features, such as cosmetic features or power-up bonuses, available for purchase, making this particular market sufficiently different from the overall video game market. Under this market definition, Judge Rogers concluded that Apple was not a monopoly and mostly a
duopoly A duopoly (from Greek , ; and , ) is a type of oligopoly where two firms have dominant or exclusive control over a market, and most (if not all) of the competition within that market occurs directly between them. Duopoly is the most commonly ...
alongside Google, with potential competition to come from
Nintendo is a Japanese Multinational corporation, multinational video game company headquartered in Kyoto. It develops, publishes, and releases both video games and video game consoles. The history of Nintendo began when craftsman Fusajiro Yamauchi ...
and Google Stadia, and while Apple "enjoys considerable market share of over 55% and extraordinary high profit margins", that type of success was not an illegal monopoly. In this light, Judge Rogers ruled that Epic had failed to show that Apple violated federal or state antitrust laws, but ruled that Apple did violate the California Unfair Competition Law through the anti-competitive behavior of disallowing any mention of other payment systems within apps. In line with Epic's arguments, Rogers identified that some of Apple's practices may be of concern due to the lack of competition in the digital game purchases market, but as having determined that Apple was not a monopoly, could not take immediate action to remedy. Rogers stated that the lack of competition in this area was of concern and that Apple only seemed to be motivated to innovate or change its App Store policies when subject to litigation. Rogers believed that the 30% revenue cut that Apple charges may be "unjustified" relative to the value they offer, but without significant competition to compare alternate schemes, she could not make any direct order on this. Rogers did write that "The point is that a third-party app store could put pressure on Apple to innovate by providing features that Apple has neglected." However, she disagreed with Epic's stance that Apple should not require apps to include the IAP feature for payment features, stating that Apple has a right to take some fee for licensing its intellectual property to developers. Rogers agreed with Apple that there was a valid interest in their policies to require oversight on app approval for the App Store for security purposes, which Epic had argued was used to shut down app approvals. However, Rogers did not fully accept Apple's argument that app review had to be tied directly to app distribution as the only means to prevent malware and other security issues, believing that more app reviewers would help separate these functions within the App Store. Judge Rogers also ruled against Epic, requiring them to pay Apple , 30% of the revenue that was withheld to Apple related to their attempts to bypass the App Store, and further stated that Epic did violate its contractual terms as a developer with Apple in how they deployed the update to ''Fortnite'' in August 2020 that instigated events, such that Apple may block Epic in the future from providing apps to the App Store. Rogers stated that Apple's single offense against California's law was not sufficiently severe to justify Epic's rulebreaking.


Appeals

On the day of Rogers's decision, a representative for Apple stated that "Today the Court has affirmed what we've known all along: the App Store is not in violation of antitrust law." However, in October 2021, Apple filed an appeal of the decision, seeking to overturn the preliminary injunction related to anti-steering practices which was due to go into effect in December 2021. Apple claimed the injunction was no longer necessary as they were planning on deleting the anti-steering provisions from their AUP as a result of the settlement from a separate lawsuit, ''Cameron v. Apple'', completed in August 2021. Judge Rogers denied a stay of the injunction related to the anti-steering provisions in November 2021, requiring Apple to comply by December 9, 2021, 90 days from the initial order. The Ninth Circuit issued a stay on the portion of Judge Rogers's order related to provide in-app links to alternate payment systems on December 8, 2021, ruling that Apple had shown likelihood to succeed on their appeal, though the order requiring Apple to allow apps to communicate to users about such payment systems outside of the app was upheld. Epic Games's Sweeney stated that the decision "isn't a win for developers or for consumers", that Epic would not be bringing ''Fortnite'' back to iOS until "Epic can offer in-app payment in fair competition with Apple in-app payment, passing along the savings to consumers", and that they would continue to litigate on this matter. Epic filed notice of its appeal to the Ninth Circuit on September 12, 2021, challenging Judge Rogers's conclusion that Apple was not a monopoly. Following their appeal on September 22, Sweeney stated that Apple had told Epic they would not let ''Fortnite'' back onto the App Store until the completion of all litigation related to the suit, which Sweeney later believed that this particular process would take "a minimum of five years, if not more", thereby prolonging the lawsuit until 2026. A coalition of 35 states, Microsoft, the
Electronic Frontier Foundation The Electronic Frontier Foundation (EFF) is an American international non-profit digital rights group based in San Francisco, California. It was founded in 1990 to promote Internet civil liberties. It provides funds for legal defense in court, ...
, and several other groups filed amicus briefs in support of Epic's position, arguing that Apple held a monopoly and thus that Epic should prevail in its lawsuit. Court hearings for the appeals began on November 14, 2022, in the Ninth Circuit. The Ninth Circuit issued its opinion on April 24, 2023. The three judge panel all agreed that the lower court ruling should be upheld. However, the Ninth Circuit agreed to stay the injunction requiring Apple to allow links to third-party payment options in July 2023, allowing time for Apple to submit its appeal to the Supreme Court. Both Apple and Epic Games appealed this decision to the Supreme Court. Justice Elena Kagan declined Epic's emergency request to lift the Ninth Circuit's stay in August 2023. On January 16, 2024, the Supreme Court declined to hear the appeals from Apple and Epic in the case.


Enforcement

With the Supreme Court's refusal to hear either appeal, the case ended with all charges dismissed except for the anti-steering charge. To implement this, Apple allowed developers to include "metadata buttons, external links, or other calls to action that direct customers to purchasing mechanisms", but required that developers give Apple 27% of all sales made within seven days of being directed to these sites, which Apple described as a "reasonable means to account for the substantial value Apple provides developers, including in facilitating linked transactions". In addition, the App Store posts a warning screen stating that Apple is not responsible for any security or privacy issues related to third-party payment systems when clicking through to one of these systems. Sweeney stated that these changes are in bad faith compliance with the court orders, maintaining a 27% anti-competitive tax and a "scare screen" that are intended to dissuade developers from using third-party payment systems. Epic filed its request to Rogers in March 2024 to enforce the anti-steering provision that she had outlined for Apple. Rogers ruled in April 2025 that Apple "willfully" failed to comply with her previous injunctions, and further extended these injunctions to prevent Apple from collecting any fees from third-party storefronts, nor impose restrictions on app interfaces or block such external links outside of a neutral message informing the user they are accessing a third-party site. Rogers also referred the case to the federal attorney's office for possible criminal contempt proceedings, finding that company executives had lied and knowingly took an anti-competitive route to try to demonstrate compliance. Sweeney stated that with the ruling, they plan to bring ''Fortnite'' to iOS in the United States within a week, as well as offering to have Apple consider dropping all attempts to block third-party apps worldwide in exchange. Apple said they will comply with the new restrictions but appealed the decision to the Ninth Circuit. Epic submitted ''Fortnite'' to the App Store on May 9, 2025. After a week with no response from Apple, Epic pulled and then resubmitted their application just ahead of a major update that they had planned for ''Fortnite''. By May 16, 2025, Apple had still yet to approve the app, forcing Epic to forgo the patch for iOS devices and disable the app for iOS, affecting those in the European Union. Apple wrote to Epic that it would not approve ''Fortnite'' until after the Ninth Circuit rules on their motion for a preliminary injunction on their appeal. In response, Epic filed a motion in the district court to force Apple to approve ''Fortnite''. After the court requested Apple to respond on May 19, Apple approved ''Fortnite'', stating that all the issues with its submission to the App Store had been resolved; Epic brought the app back on May 20 for the U.S. and updated the European version. The Ninth Circuit denied Apple's request for an emergency stay of Rogers' order on June 4, 2025. Apple had requested the lower court to order Epic Games to pay 90% of Apple's legal fees estimated at $73 million, based on the fact that nine of the ten claims Epic filed were dismissed by the court.


Aftermath

Apple announced in January 2024 that to comply with the European Union's Digital Markets Act (DMA) that it will allow third party storefronts to be loaded onto iOS devices in March 2024. In response, Epic stated they plan to bring the Epic Games Store as well as ''Fortnite'' to iOS in Europe. Sweeney still argued that the new terms for use in the EU were "a new instance of Malicious Compliance" and would continue to challenge those through legal routes. While Epic had originally been approved for an Apple developer account through its Sweden office in preparation to release ''Fortnite'' on iOS in early 2024, Apple nullified the account on March 6, 2024, stating that Epic Games was untrustworthy and threatened the iOS environment. Epic published letters it had obtained from Apple that Epic claimed demonstrated the account termination was retaliatory for Sweeney's comments on Apple's compliance with the DMA and vowed to fight Apple as needed. The EU stated the next day they were seeking more details from Apple and whether the action was compliant under the DMA. Following that, on March 8, Apple reversed the ban on Epic's Sweden account, which Sweeney stated was "a big win for European rule of law, for the European Commission, and for the freedom of developers worldwide to speak up." Apple ultimately approved of Epic's application to be on the App Store in July 2024, following Apple's complaints that Epic's apps used user interface aspects that were too similar to its own storefront elements. The Epic Games Store app, along with ''Fortnite'', were released for iOS users in Europe only on August 16, 2024. The United Kingdom passed the Digital Markets, Competition and Consumers Bill (DMCC) in May 2024, which made similar requirements on app stores as the EU's DMA. After its passage, Epic Games stated they plan to bring their own Epic Games Store and ''Fortnite'' to iOS systems in the UK in the second half of 2025.


Reactions

Companies like
Facebook Facebook is a social media and social networking service owned by the American technology conglomerate Meta Platforms, Meta. Created in 2004 by Mark Zuckerberg with four other Harvard College students and roommates, Eduardo Saverin, Andre ...
,
Spotify Spotify (; ) is a List of companies of Sweden, Swedish Music streaming service, audio streaming and media service provider founded on 23 April 2006 by Daniel Ek and Martin Lorentzon. , it is one of the largest providers of music streaming services ...
, and the Match Group supported Epic Games in its lawsuit and spoke of their own past issues with Apple's App Store policies related to their services. Digital Content Next, a non-profit trade group representing media outlets like ''
The New York Times ''The New York Times'' (''NYT'') is an American daily newspaper based in New York City. ''The New York Times'' covers domestic, national, and international news, and publishes opinion pieces, investigative reports, and reviews. As one of ...
'' and ''
The Wall Street Journal ''The Wall Street Journal'' (''WSJ''), also referred to simply as the ''Journal,'' is an American newspaper based in New York City. The newspaper provides extensive coverage of news, especially business and finance. It operates on a subscriptio ...
'', also backed Epic's suit, asserting among other issues that Apple has given out uniquely favorable deals to some providers like
Amazon Amazon most often refers to: * Amazon River, in South America * Amazon rainforest, a rainforest covering most of the Amazon basin * Amazon (company), an American multinational technology company * Amazons, a tribe of female warriors in Greek myth ...
but not to others. After the initial ban, some people attempted to sell mobile iOS devices with ''Fortnite'' still installed for thousands of dollars. When the game was removed from the App Store, it did not surprise many users as most people were anticipating it from the beginning and it seemed that many players purely jumped "on board for the memes", according to ''
Polygon In geometry, a polygon () is a plane figure made up of line segments connected to form a closed polygonal chain. The segments of a closed polygonal chain are called its '' edges'' or ''sides''. The points where two edges meet are the polygon ...
''. In September 2020, Epic Games, together with thirteen other companies, launched the Coalition for App Fairness, which aims for better conditions for the inclusion of apps in the app stores. On October 8, 2020,
Microsoft Microsoft Corporation is an American multinational corporation and technology company, technology conglomerate headquartered in Redmond, Washington. Founded in 1975, the company became influential in the History of personal computers#The ear ...
announced a commitment to ten fairness principles in the operation of its Microsoft Store on Windows 10, which included promises of transparency over its guidelines, not blocking competing app stores from being used on Windows, and not removing apps from the store based on their business model, how they handle payments, or how their services are delivered. In December 2020,
Apple An apple is a round, edible fruit produced by an apple tree (''Malus'' spp.). Fruit trees of the orchard or domestic apple (''Malus domestica''), the most widely grown in the genus, are agriculture, cultivated worldwide. The tree originated ...
announced that it would be lowering the revenue cut Apple takes for app developers making $1M or less from 30% to 15% if app developers fill out an application for the lowered revenue cut.


''Epic Games v. Google''

The events and initial actions on Epic's lawsuit against Google were brought on the same day as Epic's suit against Apple, but Google stressed the legal situation around their case is far different. Google asserted that the Android operating system does not have the same single storefront restriction as Apple's iOS, and thus allows different Android phone manufacturers to bundle different storefronts and apps as they desire. Google said they are negotiating with Epic Games far differently from Apple in their case. Following a lawsuit filed by 36 states and the District of Columbia over antitrust violations related to the Play Store in early July 2021, Epic amended its claim in the Google suit later that month to reflect information supporting the states' case. Epic specifically focused on Google's actions when Epic had started working with
Samsung Samsung Group (; stylised as SΛMSUNG) is a South Korean Multinational corporation, multinational manufacturing Conglomerate (company), conglomerate headquartered in the Samsung Town office complex in Seoul. The group consists of numerous a ...
to offer ''Fortnite'' through their own storefront, with evidence from the states that corroborated anti-competitive behavior. Google countersued Epic in October 2021, asserting that by introducing a version of ''Fortnite'' that did not use
Google Play Google Play, also known as the Google Play Store, Play Store, or sometimes the Android Store (and was formerly Android Market), is a digital distribution service operated and developed by Google. It serves as the official app store for certifie ...
's payment systems, Epic had violated their contract with Google, and because this version still exists and can be obtained in other formats outside of Google Play, Epic "has alternatively been unjustly enriched at Google's expense", and seek to recover monetary damages from this version. After a jury trial over November and December 2023, the jury ruled in favor of Epic Games on December 11, 2023, finding that Google has a monopoly in the Android device space with Google Play, and engaged in unlawful practices to maintain that monopoly. The jury also concluded that Google also unlawfully tied Google Play to its billing systems.


Related actions


By Epic Games

In December 2020, Epic Games filed separate complaints against Apple and Google in the United Kingdom's Competition Appeal Tribunal related to the companies' anticompetitive behavior in both the UK and European Union, with similar charges as Epic asserted in their U.S. cases. They have also launched legal action in Australia, and the European Union. On February 22, 2021, the Competition Appeal Tribunal rejected Epic's lawsuit against Apple in the UK however allowed their lawsuit against Google to proceed. Epic Games later released a statement stating that they would reconsider pursuing their lawsuit against Apple in the UK following the resolution of the U.S. lawsuit while also stated that they were "pleased" with the tribunal's decision regarding their case against Google. Epic also filed similar charges against Apple in Australia. On April 9, 2021, Judge Nye Perram ordered a three-month stay on Epic's lawsuit against Apple in Australia while stating that the stay would become permanent in the event Epic does not file in the U.S. but under the Australian Consumer Law within that time frame. Epic appealed Judge Perram's ruling, which was granted in a ruling in July 2021, allowing its case in Australia to go forward. Epic had acquired
Bandcamp Bandcamp is an American online music distribution platform founded in 2008 by Oddpost co-founder Ethan Diamond and programmers Shawn Grunberger, Joe Holt and Neal Tucker, with an office and record store in Oakland, California. Acquired by Epic ...
in March 2022. Bandcamp allowed music creators to sell music with a 10-15% revenue split, which was kept following Epic's acquisition. Google announced a planned change in its Google Play Store policy that required all apps to use its Play Store payment systems or face removal by June 2022. Bandcamp, supported by Epic, sued Google in April 2022 and sought a preliminary injunction to block this action by Google, arguing that the 30% revenue cut demanded by the Play Store payment system would destroy their financial model. Google responded that they have offered a Media Experience Program that for media apps that provide appropriate integration with Google's services, that they can use a 10% revenue cut through the Play Store instead. By May 2022, an agreement had been arranged that while Epic's suit continues, Bandcamp could continue to use its in-app purchasing system, though they will retain the 10% fee on each sale in
escrow An escrow is a contractual arrangement in which a third party (the stakeholder or escrow agent) receives and disburses money or property for the primary transacting parties, with the disbursement dependent on conditions agreed to by the transact ...
until the conclusion of the case. Additional filings by Epic assert that Google had paid competitors significant sums of money to dissuade them from making a competition app store to Google Play, with the highest being paid to Activision Blizzard. Epic Games said these payments helped Google to maintain its monopoly on storefronts via Google Play on the Android operating system.


Others

In the United States, forty states filed suit against Google in July 2021 arguing its app store practices, including its 30% revenue cut, were anti-competitive, similar to the factors that Epic sought in its case. Later, in August 2021, Senators
Richard Blumenthal Richard Blumenthal ( ; born February 13, 1946) is an American politician, lawyer, and United States Marine Corps, Marine Corps veteran serving as the Seniority in the United States Senate, senior United States Senate, United States senator from ...
, Marsha Blackburn, and Amy Klobuchar introduced the Open App Markets Act bill, which would prevent app stores from forcing developers from exclusively using the app store's payment system. The bill passed out of the Senate committee by February 2022. It died at the end of the 117th Congress. In August 2021, as part of a settlement to ''Cameron v. Apple'', a similar class-action lawsuit filed by app developers, Apple announced that it would allow developers to collect information within apps such as email addresses from users so that the developers can subsequently tell customers about ways to pay outside of the App Store.
South Korea South Korea, officially the Republic of Korea (ROK), is a country in East Asia. It constitutes the southern half of the Korea, Korean Peninsula and borders North Korea along the Korean Demilitarized Zone, with the Yellow Sea to the west and t ...
passed a law in August 2021 amending their Telecommunications Business Act that required app stores like Apple's and Google's to allow app developers to use alternative payment systems other than the storefront, in addition to giving the government more involvement in mediations over app store issues in conflicts between the operators and developers and users. This was the first such law passed at a national level. Epic asked Apple to allow ''Fortnite'' onto the Korean version of the store due to this policy in September 2021, but Apple rejected this as the law had yet to come into effect.


References

{{Video game controversy 2020s trials 2021 in United States case law 2021 in video gaming 21st-century American trials Apple Inc. litigation Epic Games Fortnite Google litigation Trials in California United States antitrust case law United States District Court for the Northern District of California cases Video game case law