Beautiful Virgin Islands

Saturday, Feb 22, 2025

Apple shares fall after new ruling in Epic Games fight

Apple shares fall after new ruling in Epic Games fight

Apple investors are making their own determination following a legal ruling in its battle with Epic Games and there is no sign the saga will end anytime soon.

Apple shares dipped more than 2% after the tech giant was hit with an injunction on Friday in the company's legal battle with Fortnite creator Epic Games.

The injunction, from judge Yvonne Gonzalez Rogers, will allow developers who use the company's App Store to put "buttons, external links, or other calls to action" within their apps and metadata that "direct customers to purchasing mechanisms, in addition to In-App Purchasing."

Apple can also no longer prohibit developers from communicating with customers through points of contact obtained voluntarily through account registration within apps.


The order, which will take effect in December, comes after Epic Games announced plans to implement its own in-app payment system in the popular video game last year to avoid paying Apple a 30% commission fee. In response to the move, Apple removed Fortnite from its App Store and restricted access to its iOS developer account. Epic fired back with an antitrust lawsuit, accusing Apple of using its App Store to stifle competition and maintain a monopoly over the app market.

Apple won on nine of 10 counts but was found to engage in anticompetitive conduct under California's Unfair Competition law.

"The Court concludes that Apple’s anti-steering provisions hide critical information from consumers and illegally stifle consumer choice," Rogers wrote in the ruling. "When coupled with Apple’s incipient antitrust violations, these anti-steering provisions are anticompetitive and a nationwide remedy to eliminate those provisions is warranted."

However, Rogers emphasized the court could not ultimately conclude Apple is a monopolist under federal or state antitrust laws.

"While the Court finds that Apple enjoys considerable market share of over 55% and extraordinarily high profit margins, these factors alone do not show antitrust conduct," Rogers added. "Success is not illegal."

In addition, Rogers ruled that Epic must pay 30% of all revenue collected through Fortnite's direct payment system since August 2020.


Prior to the ruling, Apple shares were trading at an all-time high of $154.30 per share.

Apple said it is "very pleased" with the court's ruling, which it considers to be a "huge win."

"This is a resounding victory and underscores the merit of our business both as an economic and competitive engine," Apple general counsel Kate Adams said in a statement.


Meanwhile, an Epic Games spokesperson confirmed to FOX Business that the company plans to appeal the ruling.

"Today's ruling isn't a win for developers or for consumers. Epic is fighting for fair competition among in-app payment methods and app stores for a billion consumers," Epic CEO Tim Sweeney tweeted. "Fortnite will return to the iOS App Store when and where Epic can offer in-app payment in fair competition with Apple in-app payment, passing along the savings to consumers."

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Good News: Senate Confirms Kash Patel as FBI Director
Officials from the U.S. and Hungary Engage in Talks on Economic Collaboration and Sanctions Strategy
James Bond Franchise Transitions to Amazon MGM Studios
Technology Giants Ramp Up Lobbying Initiatives Against Strict EU Regulations
Alibaba Exceeds Quarterly Projections Fueled by Growth in Cloud and AI
Tequila Sector Faces Surplus Crisis as Agave Prices Dive Sharply
Residents of Flintshire Mobile Home Park Grapple with Maintenance Issues and Uncertain Future
Ronan Keating Criticizes Irish Justice System Following Fatal Crash Involving His Brother
Gordon Ramsay's Lucky Cat Restaurant Faces Unprecedented Theft
Israeli Family Mourns Loss of Peace Advocate Oded Lifschitz as Body Returned from Gaza
Former UK Defense Chief Calls for Enhanced European Support for Ukraine
Pope Francis Admitted to Hospital in Rome Amid Rising Succession Speculation
Senate Republican Leader Mitch McConnell, at the age of 83, Declares His Retirement.
Whistleblower Reveals Whitehall’s Focus on Kabul Animal Airlift Amid Crisis
Politicians Who Deliberately Lie Could Face Removal from Office in Wales
Scottish Labour Faces Challenges Ahead of 2026 Holyrood Elections
Leftwing Activists Less Likely to Work with Political Rivals, Study Finds
Boris Johnson to Host 'An Evening with Boris Johnson' at Edinburgh's Usher Hall
Planned Change in British Citizenship Rules Faces First Legal Challenge
Northumberland Postal Worker Sentenced for Sexual Assaults During Deliveries
British Journalist Missing in Brazil for 11 Days
Tesco Fixes Website Glitch That Disrupted Online Grocery Orders
Amnesty International Critiques UK's Predictive Policing Practices
Burglar Jailed After Falling into Home-Made Trap in Blyth
Sellafield Nuclear Site Exits Special Measures for Physical Security Amid Ongoing Cybersecurity Concerns
Avian Influenza Impact on Seals in Norfolk: Four Deaths Confirmed
First Arrest Under Scotland's Abortion Clinic Buffer Zone Law Amidst International Controversy
Meghan Markle Rebrands Lifestyle Venture as 'As Ever' Ahead of Netflix Series Launch
Inter-Island Ferry Services Between Guernsey and Jersey Set to Expand
Significant Proportion of Cancer Patients in England and Wales Not Receiving Recommended Treatments
Final Consultation Launched for Vyrnwy Frankton Power Line Project
Drug Misuse Deaths in Scotland Rise by 12% in 2023
Failed £100 Million Cocaine Smuggling Operation in the Scottish Highlands
Central Cee Equals MOBO Awards Record; Bashy and Ayra Starr Among Top Honorees
EastEnders: Four Decades of Challenging Social Norms
Jonathan Bailey Channels 'Succession' in Bold Richard II Performance
Northern Ireland's First Astronaut Engages in Rigorous Spacewalk Training
Former Postman Sentenced for Series of Sexual Offences in Northumberland
Record Surge in Anti-Muslim Hate Crimes Across the UK in 2024
Omagh Bombing Inquiry Concludes Commemorative Hearings with Survivor Testimonies
UK Government Introduces 'Ronan's Law' to Combat Online Knife Sales to Minors
Metal Detectorists Unearth 15th-Century Coin Hoard in Scottish Borders
Woman Charged in 1978 Death of Five-Year-Old Girl in South London
Expanding Sinkhole in Godstone, Surrey, Forces Evacuations and Road Closures
Bangor University Announces Plans to Cut 200 Jobs Amid £15 Million Savings Target
British Journalist Charlotte Peet Reported Missing in Brazil
UK Inflation Rises to 3% in January Amid Higher Food Prices and School Fees
Starmer Defends Zelensky Amidst Trump's 'Dictator' Allegation
Zelensky Calls on World Leaders to Back Peace Efforts in Light of Strains with Trump
UK Prime minister, Mr. Keir Starmer, has stated that any peace agreement aimed at ending the conflict in Ukraine "MUST" include a US security guarantee to deter Russian aggression
×