Court Ruling Delivers Major Setback To Apple’s App Store Business

A U.S. federal judge on Friday ruled against Apple (AAPL) in a major court decision that determined that the company’s App Store policies are anti-competitive. Apple stock dropped on the news.


The decision is a victory for “Fortnite” video game publisher Epic Games, which sued Apple over its restrictive App Store policies. Those policies prohibit developers from communicating with app users about alternative payment methods outside of the Apple App Store.

U.S. District Court Judge Yvonne Gonzalez-Rogers on Friday issued a permanent injunction barring Apple from prohibiting developers from including in their apps external links or other means of directing customers to outside purchasing mechanisms.

The judge said Epic Games proved at trial that “Apple is engaging in anti-competitive conduct under California’s competition laws.” Her ruling comes more than three months after the trial concluded.

Epic Games has called Apple’s 30% commission on digital sales in its App Store a monopolistic tax.

In midday trading on the stock market today, Apple stock fell 2.9%, near 149.60.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.


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