Epic vs Apple trial ruling may take a bite out of Apple's earnings

The Epic vs Apple trial is now concluded, and a judge's ruling could take a serious bite out of Apple's revenue earning streams.

Published Sat, Sep 11 2021 10:23 AM CDT   |   Updated Wed, Oct 6 2021 7:48 PM CDT

A new ruling in the Epic vs Apple trial could have a substantial impact on App Store revenues moving forward.

Epic vs Apple trial ruling may take a bite out of Apple's earnings 234 | TweakTown.com

After months of testimony, the Epic vs Apple trial has been concluded and US District Court Judge Yvonne Gonzalez Rogers has delivered a ruling. The news is both good and bad for the computer titan; Apple isn't in violation of antitrust laws and is not a monopoly, the court declares, but the company has been ordered by injunction to allow third-party payment processing methods on the App Store.

This could potentially be a big win for developers, who can now directly link to their own payment processing systems within their games and apps. This means consumers can pay developers directly for apps and in-game microtransactions and bypass Apple's 30% commission, which Judge Rogers has called "excessive" and "supracompetitive."

"[Apple is] hereby permanently restrained and enjoined from prohibiting developers from (i) including in their apps and their metadata buttons, external links, or other calls to action that direct consumers to purchasing mechanisms, in addition to In-App Purchasing," Judge Gonzalez Rogers wrote in the final ruling.

Apple's 30% revenue cut makes it billions every quarter. Apple earned an incredible $17.486 billion from its Services segment in Q3 2021, a new all-time high, and has earned over $50 billion from Services in the last 9 months. Apple's App Store revenues have grown tremendously in the last 10 years, ranging from $1 billion in 2011 up to $15 billion by 2020.

Epic vs Apple trial ruling may take a bite out of Apple's earnings 433 | TweakTown.com
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Derek joined the TweakTown team in 2015 and has since reviewed and played 1000s of hours of new games. Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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