Epic Games v. Apple

Epic Games v. Apple
CourtUnited States District Court for the Northern District of California
Full case name Epic Games, Inc. v. Apple Inc.
ArguedMay 3–24, 2021
DecidedSeptember 10, 2021
Holding
While Apple is not considered a monopoly and did not engage in antitrust behavior on nine of ten counts, Apple's conduct in enforcing anti-steering restrictions is anticompetitive.
Court membership
Judge sittingYvonne Gonzalez Rogers

Epic Games, Inc. v. Apple Inc. was a lawsuit brought by Epic Games against Apple in August 2020 in the United States District Court for the Northern District of California, related to Apple's practices in the iOS App Store. Epic Games specifically had challenged Apple's restrictions on apps from having other in-app purchasing methods outside of the one offered by the App Store. Epic Games's founder Tim Sweeney had previously challenged the 30% revenue cut that Apple takes on each purchase made in the App Store, and with their game Fortnite, wanted to either bypass Apple or have Apple take less of a cut. Epic implemented changes in Fortnite intentionally on August 13, 2020, to bypass the App Store payment system, prompting Apple to block the game from the App Store and leading to Epic filing its lawsuit. Apple filed a countersuit, asserting Epic purposely breached its terms of contract with Apple to goad it into action, and defended itself from Epic's suit.

The trial ran from May 3 to May 24, 2021. In a September 2021 ruling in the first part of the case, Judge Yvonne Gonzalez Rogers decided in favor of Apple on nine of ten counts, but found against Apple on its anti-steering policies under the California Unfair Competition Law. Rogers prohibited Apple from stopping developers from informing users of other payment systems within apps. Both Epic and Apple appealed the judgement, but in April 2023 the Ninth Circuit Court of Appeal in large part affirmed the District Court's decision. In January 2024, the Supreme Court denied the full appeals of both Apple and Epic in the case, leaving the case primarily a victory for Apple in allowing them to continue restricting app distribution to their App Store and to continue restricting in-app purchases to Apple's payment systems, but requiring Apple to allow developers to link to external websites offering alternate payment options (off-app purchases).

While Apple implemented App Store policies to allow developers to link to alternative payment options, the policies still required the developer to provide a 27% revenue share back to Apple, and heavily restricted how they could be shown in apps. Epic filed complaints that these changes violated the ruling, and in April 2025 Rogers found for Epic that Apple had willfully violated her injunction, placing further restrictions on Apple including banning them from collecting revenue shares from non-Apple payment methods or imposing any restrictions on links to such alternative payment options. Though Apple is appealing this latest ruling, they approved the return of Fortnite with its third-party payment system to the App Store in May 2025.

Epic also filed another lawsuit, Epic Games v. Google, the same day, which challenges Google's similar practices on the Google Play app store for Android, after Google pulled Fortnite following the update for similar reasons as Apple. However, that case centered more on the practices and deals that Google, as a dominant tech giant, wielded over partners to assure use of the Play Store. In December 2023, a jury ruled against Google in that it had unlawfully maintained its monopoly on the Android environment.