![]() ![]() Currently, app developers like Epic Games can publish its applications on Apple’s operating system for free. I expect this to have at most a 2% headwind to overall revenue and 4% to earnings.”ĭeeper implications of the App Store with this ruling remains to be seen. As for impact, overall the App Store is about 7% of total revenue and 14% of profits. “Epic won the steering count and Apple won that it’s not a monopoly. “It’s a mixed bag for both Apple and Epic,” he said. Gene Munster, managing partner and cofounder of venture firm Loup Ventures, agrees. But Apple wants to have complete control, and that is clearly not what happened.” ![]() “The ruling is irrelevant in terms of how much of a financial impact it will have on Apple. “The ruling is definitely not as positive as Apple is trying to make it,” said Harsh Kumar, an analyst at Piper Sandler. No mention of the new requirement for alternative app store payments. She adds: “We are still analyzing the decision which is 180 pages long but the headline is that Apple’s app store business model has been validated.” “The Court has confirmed, after reviewing evidence from a 16-day trial, that Apple is not a monopolist in any relevant market and that its agreements with app developers are legal under the antitrust laws.” “We are very pleased with the Court’s ruling and we consider this a huge win for Apple,” said Kate Adams, senior vice president and general counsel at Apple, in a statement the day after the verdict was announced. ![]() We remain committed to ensuring the App Store is a safe and trusted marketplace.” “As the Court recognized ‘success is not illegal.’ Apple faces rigorous competition in every segment in which we do business, and we believe customers and developers choose us because our products and services are the best in the world. “Today the Court has affirmed what we’ve known all along: the App Store is not in violation of antitrust law,” the statement read. As the injunction notes, either party can seek to modify this ruling, and Apple is expected to appeal its case and bring it to a higher court.Apple currently collects 15% to 30% of app developers’ revenue if the payments were transacted through its App Store.Ī statement from Apple released shortly after the ruling focused only on Judge Gonzalez Rogers’ conclusion that Apple is not an antitrust monopolist. Of course, this won't be the end of the Epic vs Apple lawsuit. While the court ruled "that Apple's conduct in enforcing anti-steering restrictions is anticompetitive," it did not find "that Apple is an antitrust monopolist in the submarket for mobile gaming transactions." And though Epic is undeniably the winner today, and it's far from the only developer that will benefit from these App Store changes, it will still be forced to pay Apple 30% of the $12,167,719 in revenue that it received during the brief window that Fortnite allowed direct payments on iOS, on top of additional damages. It's worth noting that the full ruling is less clear-cut than this injunction may imply. The company said it would allow developers to share information about third-party payment methods with players via external communication, but it must now allow developers to integrate those methods directly. This injunction will reinforce and add to changes which Apple recently announced in response to a different lawsuit. ![]()
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