Advertisement

In Apple versus Epic Games, the courtroom battle is only half the fight

  • A defeat for the maker of Fortnite could make it harder for US government regulators to pursue a similar case against the iPhone maker
  • Epic’s arguments draw on antitrust cases against Microsoft and Kodak but will apply those precedents in new ways that have not been tested in US courts

Reading Time:3 minutes
Why you can trust SCMP
This illustration picture shows the Epic Games logo displayed on a laptop and an Apple Logo on an iPhone. Photo: AFP

Epic Games faces an uphill legal battle against Apple in an antitrust trial starting Monday, and a defeat for the maker of Fortnite could make it harder for US government regulators to pursue a similar case against the iPhone maker, legal experts said.

Advertisement

But win or lose at the trial, Epic, which has pursued an aggressive public relations campaign against Apple alongside its court pleadings, may have already accomplished a major goal: Drawing Apple squarely into the global debate over whether and how massive technology companies should be regulated.

The video game Fortnite by Epic Games is pictured on a screen in this picture illustration. Photo: Reuters
The video game Fortnite by Epic Games is pictured on a screen in this picture illustration. Photo: Reuters

Apple has mostly succeeded in staying out of the regulatory crosshairs by arguing that the iPhone is a niche product in a smartphone world dominated by Google’s Android operating system. But that argument has become harder to sustain with the number of iPhone users now exceeding 1 billion.

Epic alleges Apple has such a strong lock on those customers that the app store constitutes a distinct market for software developers over which Apple has monopoly power. Apple is abusing that power, Epic argues, by forcing developers to use Apple’s in-app payment systems – which charge commissions of up to 30 per cent – and to submit to app-review guidelines the gaming company says discriminate against products that compete with Apple’s own.

Advertisement

“It’s not a super-strong suit – I don’t think they are likely to win,” said Rebecca Haw Allensworth, a law professor at Vanderbilt Law School. “But it has already achieved a lot of its purpose, which is drawing attention to some of Apple’s practices that many developers see as abusive.”

loading
Advertisement