Tech giants Apple and Epic Games have jointly filed a request with a US appeals court, urging a reconsideration of the court’s ruling in an antitrust case that could have significant implications for Apple’s payment policies within the App Store.
Both companies have challenged the decision made by a three-judge panel of the San Francisco-based 9th U.S. Circuit Court of Appeals. The legal teams representing Apple and Epic are seeking a rehearing of the case by the panel or the convening of an 11-judge panel to reevaluate the dispute.
The lawsuit between Epic Games, the creator of the popular game Fortnite, and Apple centers around the alleged monopolistic practices of the tech giant within its App Store. In April, a three-judge ruling upheld a 2021 order by a federal court in California, which deemed Apple’s requirement for developers to pay up to 30% in commissions on in-app purchases as unlawful.
While the trial judge found Apple in breach of a California state law regarding unfair competition, it did not rule against the company under federal antitrust regulations. Apple has now filed a new motion challenging a nationwide ban on behavior that it argues is pro-competitive and does not violate antitrust statutes.
Epic’s Arguments: In its filing to the 9th Circuit, Epic Games emphasized that its allegations against Apple align with the fundamental objective of US antitrust law, which is to foster healthy competition. The company argued that the appeals court did not adequately assess the balance between the benefits to consumers and the adverse effects of Apple’s practices.
Epic Games believes that a rehearing or reconsideration of the case is necessary to ensure a fair evaluation of the implications for competition in the app market.
The En Banc Request: While en banc requests are not frequently granted by federal appeals courts, both Apple and Epic Games are seeking this exceptional measure to challenge the previous ruling. In the past year, the 9th Circuit received 646 petitions for en banc rehearings and granted only 12.
Thus far in the current year, the court has approved en banc review in nine cases. The rarity of such requests underscores the significance of this antitrust battle between two tech industry giants.
In conclusion, the joint request from Apple and Epic Games to the US appeals court signals their determination to seek a reconsideration of the ruling in the closely watched antitrust case. The outcome of this legal battle could have far-reaching consequences for Apple’s App Store payment policies and the wider app market.
As the court deliberates on the en banc request, the tech industry and stakeholders eagerly await a resolution that could reshape the dynamics of app distribution and payment systems.