Apple recently lost a major antitrust case to Epic Games that has forced the tech giant to substantially change its iOS, Apple's operating system used by millions of Americans.
In April, Judge Yvonne Gonzalez Rogers of the U.S. District Court of the Northern District of California ruled that Apple may not charge developers any commission for sales made outside of the App Store. While this move will make developers more profitable and save consumers money in the short term, it could have lasting and devastating effects on Apple users; forcing Apple to give developers free access to its network discourages the company from investing in its App Store.
Epic Games, the producer of the popular Fortnite video game, first sued Apple in August 2020, alleging that Apple had violated the federal Sherman Antitrust Act as well as California's Cartwright Act and Unfair Competition Law by monopolizing the iOS app distribution and in-app payment processing markets via anticompetitive conduct. This conduct includes, namely, Apple's exclusion of third-party app stores and apps from its iOS devices and requiring developers to distribute apps exclusively via the App Store and use Apple's in-app payment processing (from which Apple collects a 30 percent commission on every sale). Epic's suit was prompted when Apple removed Fortnite from the App Store after discovering that Epic added an external payment service.
