Apple won appeals court ruling against Epic, but still opened the possibility for developers to accept payments through third-party services

Apple won an appeals court ruling upholding App Store policies in antitrust lawsuit filed by Epic Games reports Bloomberg.

The ruling by the US Ninth Circuit Court of Appeals upheld a lower judge’s 2021 ruling that largely rejected Epic’s claims that Apple’s policy of banning third-party app stores from its operating system violated federal law. However, the appeals panel upheld the judge’s ruling in favor of Epic on the California state’s claims.

The dispute began in 2020 when Apple removed the popular game Fortnite from the App Store after Epic created a workaround to avoid paying a 30% fee on in-game purchases. Since then, Apple has been making changes to the App Store to address the concerns of other developers who were also unhappy with the additional fee and other restrictions.

Apple called the court’s decision a “resounding victory,” saying nine out of ten lawsuits were settled in its favor.

Epic CEO Tim Sweeney conceded defeat but emphasized that the appeals court upheld the portion of the 2021 ruling that sided with Epic. In September 2021, US District Judge Yvonne Gonzalez Rogers ruled that Apple’s policy prevented consumers from receiving cheaper prices, but rejected Epic’s claim that the App Store operated as a monopoly in violation of federal antitrust laws.

However, Judge Rogers ordered Apple to allow developers to direct consumers to external payment methods, satisfying Epic’s demand. The judge, however, saw no need for third-party app stores to exist or for Apple to review its developer compensation policy.

The appeals court also recognized Apple’s argument that it needs to closely monitor apps on its devices to protect users from scammers, hackers, malware, and spyware, and praised Apple’s efforts to improve security and privacy features as pro-competitive arguments.

Even before Rogers’ decision, Apple had already made changes to the App Store to accommodate developers. For example, they are now allowed to “steer” consumers to pay for prepaid apps outside of Apple’s payment system in certain scenarios, but that policy does not apply to games like Fortnite. Epic’s software remains unavailable on the App Store and Apple devices, though Sweeney hinted at a possible return in 2023.

According to preliminary information, in response to new EU legislation, Apple plans to allow third-party app stores as part of the upcoming iOS 17 operating system, as well as make it easier for users to change default apps, including the browser. Apple is also considering opening up more of its own apps to third-party developers, including access to the Camera.