Statement on the Ninth Circuit Court’s Ruling in Epic Games v. Apple
FOR IMMEDIATE RELEASE: April 25, 2023
CONTACT: Ashley Woolheater,
woolheater@openmarketsinstitute.org
WASHINGTON - Open Markets Institute Policy Counsel Tara Pincock released the following statement in reaction to the Ninth Circuit Appeals Court’s decision to uphold Apple’s numerous violations of our antitrust laws. In the statement, Pincock notes how the district court erred in its initial decision, but also celebrates the marginal win for Epic Games that will improve users’ access alternate payment methods:
“We are disappointed that the Ninth Circuit upheld the district court’s ruling that Apple did not violate federal antitrust laws. For too long, Apple has used its monopoly power to unlawfully restrict developers from distributing their products on iPhones and other iOS devices except through Apple’s App Store, which does not allow alternative payment options. Apple uses its dominance to lock out rivals, ensure iPhone users have no alternative options to find and download apps, and to charge exorbitant 30% fees. Apple’s conduct harms iPhone users, app developers, and alternative payment companies.
“The district court erred when it held that non-negotiated contracts of adhesion (i.e., take-it-or-leave-it contracts) are not subject to Section 1 claims under the Sherman Act. This error was not harmless and the case should have been remanded back to the district court to address the issue.
“However, we are pleased that the Ninth Circuit sided with Epic on its anti-steering claims under California’s Unfair Competition Law. Under this ruling, Apple cannot stop app developers from telling their customers that there are other ways to make purchase—including visiting the developer’s website. This will allow app developers to offer users a discount if they go through the website, but at the same time, allow users who are more comfortable with Apple’s payment system to stay in the app to make their purchase.”
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The Open Markets Institute is a team of journalists, researchers, lawyers, economists, and advocates working together to expose and reverse the stranglehold that corporate monopolies have on our country. Learn more at www.openmarketsinstitute.org.