Apple does not have to reinstate Fortnite in app store, judge rules

Apple does not have to reinstate Fortnite in app store, judge rules

Apple does not have to reinstate Epic Games' massively popular Fortnite game onto its app store, a federal judge in Oakland ruled Friday.

U.S. District Judge Yvonne Gonzalez Rogers found the game maker "never adequately explained its rush" to breach its contract with the tech giant, explaining its "current predicament is of its own making."

"Epic Games bears the burden in asking for such extraordinary relief," she wrote. "Given the novelty and the magnitude of the issues, as well as the debate in both the academic community and society at large, the Court is unwilling to tilt the playing field in favor of one party or the other with an early ruling of likelihood of success on the merits."

In her ruling granting and denying in part the motion for a preliminary injunction, the judge also prohibited Apple from banning Unreal Engine, a popular piece of software Epic Games owns that is used by developers in numerous industries, in retaliation for bypassing its in-app payment system.

Apple said in a statement "the court recognized that Epic's actions were not in the best interests of its own customers."

"For twelve years, the App Store has been an economic miracle, creating transformative business opportunities for developers large and small."

A representative for Epic games could not be reached.

The antitrust case concerns Apple's alleged anticompetitive conduct over its marketplace for apps and 30% cut of all in-app transactions. Apple has increasingly turned to revenue from its app store as iPhone, iPad and Mac computer sales slump. Epic Games, Inc. v. Apple Inc., 20-cv-05640 (N.D. Cal., filed Aug. 13, 2020).

Responding to claims of irreparable harm, Gonzalez Rogers held that damage to its reputation cannot constitute such injury, especially because Epic Games chose to violate its contract with Apple. She said the company was likely motivated by "tactical motives" rather than concerns of anticompetitive conduct by iPhone users.

"In short, Epic Games cannot simply exclaim "monopoly" to rewrite agreements giving itself unilateral benefit," the judge wrote, adding the disputed issues are "at the frontier edges of antitrust law in the United States" and that "no analogous authority exists."

A bench trial is scheduled to start in May.

-- Winston Cho