United States of America: Judgement and permanent injunction released which force Apple to allow third-party payment options

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Description

Judgement and permanent injunction released which force Apple to allow third-party payment options

On 10 September 2021, the U.S. District Court for the Northern District of California reached its verdict in the matter Epic Games vs. Apple. It ruled that Epic Games has to pay damages for breach of contract since it violated the AppStore's terms and conditions by offering an alternative payment method. As a consequence, Epic Games has to pay over $3.5 million, which represents 30% of the revenue achieved through its alternative payment method. On the other hand, a permanent injunction ruled that Apple has to allow third-party payment methods from December 9th onwards. Significantly, a monopoly with market dominance could not be proven, as the market in question is only the market of digital gaming transactions, which goes against what both parties argued. The court did however rule that Apple violated California competition law with several counts of anti-competitive conduct. An appeal of the decision is possible.

Original source

Scope

Policy Area
Competition
Policy Instrument
Unilateral conduct regulation
Regulated Economic Activity
software provider: app stores
Implementation Level
subnational
Government Branch
judiciary
Government Body
court

Complete timeline of this policy change

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2021-09-10
in force

On 10 September 2021, the U.S. District Court for the Northern District of California reached its v…

2021-10-08
under appeal

On 8 October 2021, one month after the US District Court for the Northern District of California re…

2021-12-08
adopted

On 8 December 2021, the Court of Appeals ruled to allow the delayment of previously ordered changes…

2023-04-24
in force

On 24 April 2023, the US Court of Appeals for the Ninth Circuit issued its ruling concerning Epic G…

2023-07-17
under investigation

On 17 July 2023, the Court of Appeal postponed the abolition of Apple's anti-steering rules within …

2023-08-09
under investigation

On 9 August 2023, the US Supreme Court upheld the decision to delay the removal of Apple's anti-ste…

2023-09-27
under appeal

On 27 September 2023, Epic Games Inc. (Epic) filed a petition for a writ of certiorari in the Supre…

2023-09-27
under appeal

On 27 September 2023, Apple Inc. (Apple) filed a petition for a writ of certiorari in the Supreme C…

Key regulatory dimensions

Regulated subjects

The businesses, government agencies or individuals affected by this policy or regulatory change.
plaintiff
1
Type Private organisation
Economic activity other service provider
Category Firm-specific
defendant
2
Type Private organisation
Economic activity software provider: app stores
Category Firm-specific

Policy change by business practice

The detailed activities within the scope of this policy or regulatory change.
software: app store: marketing (any form)
Regulatory tool
End user access requirement
Prohibition of end-user contract limitations
Sanctions
Termination of exclusive agreements
Regulated subjects
2
Regulatory tool
Sanctions
Civil penalty
Regulated subjects
1

Policy change by business practice

The detailed activities within the scope of this policy or regulatory change.

software: app store: marketing (any form)