Observed Signal · May 3, 2021 · Regulation · Source: OnlineMarketing.de · Impact: 3/5 · Sentiment: Neutral
Apple-Epic Games antitrust case begins
Epic Games has filed a U.S. antitrust lawsuit against Apple in a federal court in Oakland, alleging that the App Store maintains a monopolistic structure in the mobile market and uses it to stifle competition. The case stems from Epic's 2020 challenge to in-app purchase commissions in Fortnite, which led to the game's removal from both Apple's App Store and Google's Play Store. Although commissions typically run at 30%, Apple and Google reduced the rate to 15% for 2021 for most developers. The lawsuit seeks to determine the extent of Apple's control over the mobile ecosystem and why iOS users cannot access alternative app stores. Testimony from Apple executives including Tim Cook, Eddy Cue, and Phil Schiller is anticipated; a ruling could reshape the app market and have implications for Google Play as well.
High-stakes antitrust case involving major platform policies and potential market implications.
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Key Takeaways & Evidence Grounding
- Epic Games filed antitrust lawsuit against Apple in a US federal court in Oakland.
- Fortnite was removed from the Apple App Store and Google Play Store in 2020 after Epic challenged in-app purchase fees.
- App Store and Google Play commissions typically 30%, reduced to 15% for 2021 for most developers.
- The lawsuit seeks to determine Apple's control over the mobile market and why no alternative iOS app stores are allowed.
- Testimony expected from Tim Cook, Eddy Cue, and Phil Schiller; ruling could reshape the app market.
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Apple asks Supreme Court to limit App Store injunction
Apple has petitioned the U.S. Supreme Court to review a Ninth Circuit ruling in the long-running Epic Games case, arguing that any injunction altering App Store rules should not apply to all developers. In its petition Apple says Epic never sought class action status and did not demonstrate that injunctive relief must extend to unrelated developers such as Microsoft or Spotify. Apple also challenges the Ninth Circuit’s civil contempt finding over Apple’s practice of allowing links to external payment options while still charging fees on those external transactions (the court highlighted a 27% fee). The Supreme Court recently declined Apple’s request to pause additional contempt proceedings. Epic criticized Apple’s petition as a delay tactic; Epic has said Fortnite is back on the App Store globally except Australia.
US Government Excludes Microsoft from Visa Program
The US government has barred Microsoft from participating in the permanent residency process for foreign workers with H-1B visas, accusing the company of abusing the program. Vice President JD Vance stated that Microsoft laid off 6,000 American employees last year while benefiting from 6,300 H-1B visa holders. The Department of Labor, led by Keith Sonderling, will not accept new permanent residency applications from Microsoft, as well as several consulting firms and Adobe. This action comes weeks before the midterm elections and reflects the Trump administration's broader criticism of the H-1B program, which it claims disadvantages American workers. Microsoft has not yet responded. The move could impact the tech industry's ability to retain skilled foreign talent.
Amazon unveils new Alexa tablets with AI and Google Play
Amazon has announced a new generation of tablets under the Alexa brand, including the Alexa Tablet 12 Pro, Alexa Tablet 11, and Alexa Tablet 8. All devices run on Android, integrate the AI assistant Alexa+, and for the first time offer direct access to the full Google Play Store, allowing users to install apps like YouTube, Netflix, and Gmail alongside Amazon services. The tablets feature various screen sizes, processors, and battery lives, with prices starting at $229.99. A special Kindle reading mode and new kids' models with parental controls have also been introduced. Sales begin in North America on October 8, with shipping from October 14, and European availability, including Germany, starts October 19.
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