News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Dozens of U.S. states say Apple stifles competition; back 'Fortnite' maker

01/27/2022 | 10:48pm EDT
FILE PHOTO: The Apple Inc logo is seen hanging at the entrance to the Apple store on 5th Avenue in New York

OAKLAND, Calif. (Reuters) -Apple Inc is stifling competition through its mobile app store, attorneys general for 34 U.S. states and the District of Columbia said on Thursday, as they appealed against a ruling that let the iPhone maker continue some restrictive practices.

While dozens of state attorneys general have filed recent antitrust lawsuits against other big tech companies, including Facebook owner Meta Platforms Inc and Alphabet Inc's Google, none had so far taken aim at Apple.

Thursday's remarks, led by the state of Utah and joined by Colorado, Indiana, Texas and others, came in a lawsuit in an appeals court against app store fees and payment tools between "Fortnite" video game maker Epic Games and Apple.

"Apple's conduct has harmed and is harming mobile app-developers and millions of citizens," the states said.

"Meanwhile, Apple continues to monopolize app distribution and in-app payment solutions for iPhones, stifle competition, and amass supracompetitive profits within the almost trillion-dollar-a-year smartphone industry."

The action comes after a U.S. district judge in Oakland, California, mostly ruled against Epic last year.

That decision found that commissions of 15% to 30% which Apple charges some app makers for use of an in-app payment system the company forced on them did not violate antitrust law.

Epic challenged the ruling in the 9th U.S. Circuit Court of Appeals. On Thursday, professors, activist groups and the states weighed in through court filings that described legal arguments in support.

Apple's reply is expected in March. On Thursday, the company said it was optimistic that Epic's challenge would fail.

The states said in their filing that the lower court erred by failing to adequately balance the pros and cons of Apple's rules and also by deciding that a key antitrust law did not apply to non-negotiable contracts Apple makes developers sign.

"Paradoxically, firms with enough market power to unilaterally impose contracts would be protected from antitrust scrutiny -- precisely the firms whose activities give the most cause for antitrust concern," they said.

(Reporting by Paresh Dave; Editing by Clarence Fernandez)

By Paresh Dave


© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
ALPHABET INC. 1.88% 2155.85 Delayed Quote.-25.58%
META PLATFORMS, INC. 4.24% 191.63 Delayed Quote.-43.03%
Latest news "Economy & Forex"
05:59pChina, Russia veto U.S. push for more U.N. sanctions on North Korea
RE
05:59pChina, Russia veto U.S. push for more U.N. sanctions on North Korea
RE
05:55pUtilities Shares Move Higher But Lag Broader Market -- Utilities Roundup
DJ
05:54pChevron makes offer to union in bid to end refinery strike -sources
RE
05:52pCommunications Services Shares Rise Amid Risk-On Sentiment -- Communications Services Roundup
DJ
05:48pTechnology Shares Jump Amid Deal News -- Tech Roundup
DJ
05:47pHusband of teacher killed in Texas school dies in wake of massacre
RE
05:41pPrevent plant scenarios creep back in with clock ticking on northern U.S. -Braun
RE
05:41pU.S. says it is not inviting Venezuelan, Nicaraguan governments to Americas summit
RE
05:41pFinancial Shares Move Higher -- Financials Roundup
DJ
Latest news "Economy & Forex"