: Epic, Apple take App Store antitrust battle to federal appeals court

by | Nov 14, 2022 | Stock Market

Longtime combatants Epic Games Inc. and Apple Inc. were back in court Monday, making their case on whether the tech giant’s app store has unlawfully enriched its $2.38 trillion status via a so-called “walled garden,” which acts as a bulwark for the store. Epic, the company behind the popular “Fortnite” videogame, revived its case that Apple’s App Store violates antitrust law before a three-judge federal appeals court in San Francisco. Apple
has levied commission fees of 15% to 30% on developers for years to cover the cost of of operating and securing the App Store, a practice that has helped the company haul in an estimated $15 billion to $20 billion annually.

Following oral arguments, the appeals court isn’t expected to rule for six months to a year; ultimately, legal experts expect the case to end up before the U.S. Supreme Court in 2024 or 2025. “The one thing that really troubles me is this failure of proof. Looking at the record, it seems (Apple’s attorneys) have made a good case,” Judge Milan Smith told Epic attorney Tom Goldstein near the end of the 75-minute hearing late Monday. (Apple won a resounding victory in a federal court case last year.) Earlier, Goldstein contended Apple’s “walled garden keeps out competitors” and that its “anticompetitive policies” increase consumer costs, reduce consumer choice, diminish the quality of the consumer experience and decrease innovation. Apple attorney Mark Perry countered that Epic is simply …

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