By Tim Higgins and Aaron Tilley of The WSJ. Excerpts:
"A two-year legal battle between Apple Inc. AAPL -2.63%decrease; red down pointing triangle and “Fortnite” maker Epic Games Inc. over how apps are distributed on the iPhone took its next steps before the Ninth U.S. Circuit Court of Appeals on Monday.
The two sides have engaged in a very public and acrimonious fight with billions of dollars at stake on each side. At the heart of the dispute is how Apple operates its app store and Epic’s contention that the company collects an unfair cut of revenue generated through the software platform.
A U.S. District Judge last year mostly sided with Apple, rejecting all but one of Epic’s claims and declaring the iPhone maker wasn’t a monopolist in what she described as “the submarket for mobile gaming transactions.”
Back then, the judge rejected Epic’s request to force Apple to let programs be downloaded onto the iPhone outside of the rules and reach of the App Store. The judge did rule that Apple was violating California’s Unfair Competition Law, which is a broader statute than other antitrust laws, by prohibiting app makers from steering customers to use payment methods outside of their apps and Apple’s reach. The judge ordered Apple to stop that, but the orders are on hold while the appeals process plays out."
"On Monday, the higher court heard both sides’ appeals in person. A new wrinkle for Apple since the May 2021 trial is the emergence of the Justice Department in the proceedings."
"In a filing earlier this year, Justice Department lawyers cautioned that the district court’s ruling offered a narrow and incorrect interpretation of the Sherman Act, which prohibits activities that restrain market competition. The department warned the ruling potentially sets a precedent for anticompetitive agreements and practices that fall outside the law’s protection."
Related post:
People Spend Real Money On Imaginary Products (2019)
No comments:
Post a Comment