Fri. Apr 16th, 2021
By: Bloomberg |

Updated: August 25, 2020 11:30:32 am

On Sunday, Epic hosted a #FreeFortnite gaming contest offering anti-Apple hats and digital avatars as prizes.(File Photo)

Apple Inc. was spared from having to immediately reinstate Epic Games Inc.’s Fortnite on its App Store, an early court victory for the iPhone maker in an intensifying battle over the tolls charged to app makers.

But U.S. District Judge Yvonne Gonzalez Rogers’s ruling late Monday wasn’t a total loss for Epic, as she granted the company’s request for a temporary order blocking Apple from limiting the game developer’s ability to provide Unreal Engine, key graphics technology, for other apps.

The mixed ruling comes as Apple faces a backlash from some app developers who say its standard App Store fee of 30% and other policies are unfair and designed to benefit the iPhone maker’s own services. The fight blew up August 13 when Epic told customers it would begin offering a discounted direct purchase plan for items in Fortnite, and Apple then removed the game app, cutting off access for more than a billion iPhone and iPad customers.

Apple had no immediate comment on the ruling. Epic didn’t immediately respond to a request for comment.

Rogers said at a hearing earlier in the day that the case isn’t a “slam dunk” for either side and cautioned that her temporary restraining order won’t dictate the final outcome of the litigation. She set a September 28 hearing on Epic’s request for a preliminary injunction.

Epic breached its agreements with Apple by trying to make money on Fortnite purchases while accessing Apple’s platform for free, but didn’t breach any contracts related to Unreal Engine and developer tools, Rogers ruled.

By limiting Unreal Engine, “Apple has chosen to act severely,” hurting third-party developers who use Epic’s technology platform, Rogers said.

“Epic Games and Apple are at liberty to litigate against each other, but their dispute should not create havoc to bystanders,” she wrote.

Epic’s Unreal Engine is a suite of software used by developers to build 3-D games and other products. Cutting off Epic from Apple’s iOS and Mac developer tools would mean the gaming company can no longer distribute Unreal Engine to other developers, Epic said Sunday in a legal filing. Microsoft Corp., which makes the Xbox, uses the technology for games developed for consoles, PCs and mobile devices, and is backing Epic in court.

Apple has said that Epic Chief Executive Officer Tim Sweeney sought a “side” deal seeking an exclusive storefront for Fortnite, a move that Apple executives argued would fundamentally upend how the App Store works. Sweeney maintains he wasn’t asking for special treatment but for Apple to make the same option available to all developers.

Of the 2.2 million apps available on the App Store, the 30% fee is billed to more than 350,000. Apple reduces the fee to 15% after a consumer uses a subscription for more than a year.

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The case is Epic Games Inc. v. Apple Inc., 20-cv-05640, U.S. District Court, Northern District of California (Oakland).

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