U.S. District Court Judge Yvonne Gonzalez-Rogers issued a permanent injunction in what has been an extended court battle between Epic Games tech giant Apple, Inc.. It’s official Apple not a monopoly.
Friday’s ruling was a major setback to Apple’s App Store’s highly profitable model. But it also vindicates Apple. Because the judge declared that it was not a monopoly that should be broken up.
Apple not a monopoly
Judge Gonzalez-Rogers claims that “the court cannot ultimately conclude that Apple is a monopolist under either federal or state antitrust laws,” she continued. “Nonetheless, the trial did show that Apple is engaging in anticompetitive conduct under California’s competition laws.”
At the same time, the court affirms Epic Games was in breach of its Apple contract. By implementing an alternative payment system in the Fortnite app they were in default. Epic must now pay Apple 30% of all revenue collected through the alternate system, estimated to be about $3.5 million.
Developers get a win
The judge disagrees with how both Apple and Epic Games have framed the relevant market. And she says that in digital mobile gaming transactions, Apple did not have a monopoly.