In August of 2020, Apple removed Fortnite, a popular game created by Epic Games (“Epic”), from the Apple App Store. (Perez, Techcrunch). Apple removed Fortnite the same day Epic began offering discounts to Fortnite users who made in-game purchases directly through Epic. (Browning, N.Y. Times). Apple has an “anti-steering” policy, which prohibits companies from directing app users to transact directly with the app developers and cutting out Apple as the middleman. Id. Epic’s practice violated the anti-steering policy and another Apple policy requiring that all “in-app” purchases be made through the Apple App Store where Apple collects a 30% fee. (Gilbert, Businessinsider). This policy has paid major dividends for Apple as the Apple App Store provides a significant portion of the company’s $78.1 billion in services revenue in 2022. (Leswing, CNBC).
As a result, on August 13, 2020, Epic sued Apple in federal court in the Northern District of California bringing a variety of claims including federal antitrust claims under the Sherman Act, California antitrust claims, and claims under California’s Unfair Competition Law. Epic Games, Inc. v. Apple Inc., 559 F. Supp. 3d 898, 1014 (N.D. Cal. 2021), aff'd in part, rev'd in part and remanded, 67 F.4th 946 (9th Cir. 2023).
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