Fortnite' Will Remain Out of Apple's App Store Ahead of Trial, Judge Rules -- Update
October 09 2020 - 8:10PM
Dow Jones News
By Sarah E. Needleman
A California federal judge said Apple Inc. doesn't have to
return the popular videogame "Fortnite" to its App Store but
maintained that the tech giant can't block the game's creator from
accessing its critical software development tools.
The ruling Friday on Epic Games Inc.'s motion for a preliminary
injunction yielded a split decision similar to Judge Yvonne
Gonzalez Rogers' order in August.
"Given the novelty and the magnitude of the issues, as well as
the debate in both the academic community and society at large, the
Court is unwilling to tilt the playing field in favor of one party
or the other with an early ruling of likelihood of success on the
merits," Judge Gonzalez Rogers wrote in her ruling.
The decision sets the stage for a trial next year that could
have broader implications on the market for mobile apps and the
companies that operate app marketplaces.
It also comes a few days after a report from the Democratic-led
House Antitrust Subcommittee accusing Apple of abusing its market
power with regard to how it operates the App Store. The report
referenced an article by The Wall Street Journal last year that
said Apple's apps routinely appeared in search results in its App
Store ahead of those from rivals. At the time Apple said it doesn't
give its own products an advantage over others and that it uses an
algorithm reliant on machine learning and past consumer preferences
to determine results, and that app rankings fluctuate.
Epic sued Apple as well as Google in August after the companies
yanked its shooter-survival game from the App Store and Google
Play, citing the addition of an unauthorized payment system that
skirted their 30% commission on in-app purchases of digital
goods.
Epic claims that Apple's App Store commission is excessive, that
Apple unfairly prohibits developers from processing customer
transactions themselves and that the tech giant abuses its control
of the marketplace to stifle competition. The Cary, N.C., company
said in its lawsuit that Apple violated the Sherman Antitrust Act
in addition to California state rules regarding anticompetitive
conduct.
Apple, which countersued Epic, disputes Epic's
characterizations, saying that the developer can distribute its
software through multiple channels and that charging a commission
isn't illegal and covers expenses such as maintaining user privacy.
It also accused Epic of deliberately flouting its rules and
engaging in a campaign aimed at hurting its business.
Write to Sarah E. Needleman at sarah.needleman@wsj.com
(END) Dow Jones Newswires
October 09, 2020 19:55 ET (23:55 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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