Apple dealt severe blow in 'Fortnite' court battle

Tech giant has been ordered by a court to allow developers to steer consumers to outside payment methods for mobile apps

The court order could take a big bite out of the profitability of the App Store.

Apple has been ordered by a court to allow developers to steer consumers to outside payment methods for mobile apps, in a ruling that is a severe blow to the iPhone maker.

A federal judge has granted an injunction sought by Fortnite owner Epic Games, while also ordering the game maker to pay damages to Apple for breach of contract.

The order could take a big bite out of the profitability of the App Store: According to analysts, the App Store takes in more than $20bn (€17bn) a year with a profit margin above 75%.

The decision is a significant setback for the world’s most valuable company as it faces growing antitrust scrutiny from lawmakers and global regulators. 

Apple is expected to appeal, setting the stage for the fight to carry on for at least another year and possibly make its way to the US Supreme Court.

Epic sued Apple in August 2020, after the iPhone-maker removed the Fortnite game from its App Store because the gaming company created a workaround to paying a 30% fee on customers’ in-app purchases.

The outcome of the trial won’t be the last word from the game maker in its global campaign against the world’s most valuable company.

Epic, which took in more than $5bn from Fortnite last year, also has filed complaints against Apple in the EU, UK, and Australia, and the game maker is suing Google over its Google Play store.