Epic Games Challenges Apple's Compliance with Court Orders on App Store Policies

Mar 11, 2025 at 8:58 PM

In the ongoing legal dispute between Epic Games and Apple, a new filing accuses Apple of undermining court rulings aimed at increasing competition in the App Store. Epic claims that Apple has introduced restrictive measures that limit the effectiveness of changes ordered by the court. The tech giant allegedly maintains control over its ecosystem to preserve financial dominance, raising significant concerns about antitrust issues in the tech industry.

The filing also highlights Apple's decision to impose commissions on external transactions, despite internal debates within the company. This move has been criticized as a violation of the court's injunction, further fueling the tension between the two companies. The battle continues to raise questions about developer rights and the integrity of the iOS ecosystem.

Apple's Alleged Non-Compliance with Court Injunctions

Epic Games' recent 41-page document submitted to the U.S. District Court asserts that Apple has not adhered to the court's directives intended to foster greater competition. The ruling previously mandated Apple to remove anti-steering restrictions, allowing developers more freedom to direct users to alternative payment methods outside the App Store. However, Epic contends that Apple's response has been far from compliant.

According to Epic, Apple has implemented new fees and restrictions under its "External Link Purchase Entitlement Program," which effectively discourages developers and consumers from participating in these changes. The filing states that Apple has consistently chosen options that benefit its profits over the interests of developers and consumers. This strategy undermines the court's intent to promote a more competitive environment. For instance, the additional fees imposed on external transactions have made it less attractive for developers to utilize these alternatives, thus maintaining Apple's stronghold on in-app purchases.

Internal Debates and Financial Concerns Driving Apple's Actions

Epic's filing also delves into internal discussions within Apple regarding the imposition of commissions on external transactions. Despite warnings from executives like Phil Schiller that such a move might violate the court's injunction, financial analysts within the company concluded that failing to charge a commission could result in significant revenue loss. This concern led to support from top executives, including former CFO Luca Maestri and CEO Tim Cook, who ultimately backed the decision to impose commissions.

This internal conflict underscores the broader issue at stake: balancing business interests with compliance. Epic argues that Apple's actions are driven by a desire to protect its financial interests rather than adhering to the spirit of the court's ruling. The ongoing feud began when Epic introduced its own in-app payment system in Fortnite, leading to a confrontation over Apple's 30% App Store commission. Since then, the battle has raised significant questions about the fairness of App Store policies, developer rights, and antitrust concerns in the tech industry. While the latest filing is an opinion, it highlights the continued tension and unresolved issues between the two tech giants.