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Meta, Microsoft, X and Match Group join Fortnite-maker Epic Game's protest against Apple

Meta, Microsoft, X and Match Group join Fortnite-maker Epic Game's protest against Apple

Meta, Microsoft, Elon Musk's X, and Match Group are participating in Epic Games' protest against Apple, alleging that Apple has not complied with a court-issued order regarding payments within its profitable App Store.

Photo/ Reuters Photo/ Reuters
SUMMARY
  • Meta, Microsoft, X and Match join Epic's protest against Apple.
  • Accuse Apple of not honouring court-ordered injunction on App Store payments.
  • Apple maintains it has complied with injunction, denies free ride to developers.

Meta Platforms, Microsoft, Elon Musk's X and Match Group on Wednesday joined "Fortnite" video game maker Epic Games' protest that Apple has failed to honour a court-ordered injunction governing payments in its lucrative App Store. The technology companies, which developed some of the most popular apps in the App Store, said Apple was in "clear violation" of the September 2021 injunction by making it difficult to steer consumers to cheaper means to pay for digital content. Apple declined to comment specifically on the accusation, which was contained in a filing with the Oakland, California federal court.

It referred to its January 16 statement that it had fully complied with the injunction, which it said would protect consumers and "the integrity of Apple's ecosystem" while ensuring that developers do not get a free ride.

Epic had sued Apple in 2020, saying it violated antitrust law by requiring consumers to obtain apps through the App Store and charging developers up to 30 per cent commissions on purchases.

The injunction required Apple to let developers provide links and buttons to direct consumers to alternative payment options.

Last week, Epic demanded that Apple be held in contempt, saying new rules and a new 27 per cent fee on developers made the links effectively useless.

In Wednesday's filing, the technology companies said Apple's conduct "for all practical purposes" entrenches anti-steering rules that the court found illegal, propping up Apple's "excessive" commissions and harming consumers and developers.

"Apple's restrictions on where and how developers can communicate with their users about their options for purchasing in-app content create significant barriers to competition and artificially inflate prices," the filing said.

In January, the US Supreme Court decided not to hear Apple's appeal from the injunction. It also decided against hearing Epic's appeal of lower court findings that Apple's policies did not violate federal antitrust law.

Apple has until April 3 to formally respond to Epic's filing. The company is based in Cupertino, California, while Epic is based in Cary, North Carolina.

The case is Epic Games Inc v Apple Inc, US District Court, Northern District of California, No. 20-05640.

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Published on: Mar 21, 2024, 6:40 PM IST
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