The Supreme Court on Tuesday allowed a court order to loosen Apple's grip on the lucrative iPhone app store, potentially impacting billions of dollars in annual revenue.
The justices rejected Apple's appeal of a lower court's ruling that some of Apple's App Store rules for apps purchased on more than 1 billion iPhones constitute unfair competition under California law.
The appeal stems from an antitrust lawsuit brought by Epic Games, the maker of the popular video game Fortnite.
Epic lost broad claims that Cupertino, Calif.-based Apple violated federal antitrust laws, with judges also rejecting Epic's appeal on Tuesday.
But the court rejected Apple's lawsuit and lifted an order that would have allowed app developers across the country to include links to third-party payment options in their iPhone apps.
This change will make it easier for developers to avoid paying fees to Apple.
Epic, based in Cary, North Carolina, said Apple's app store, launched in 2008, a year after the first iPhone was released, has become an illegal monopoly that stifles innovation and competition, costing companies billions of dollars in profits. He claimed to have brought it. apple.
Epic sought to provide an alternative way to obtain mobile apps to avoid developer fees within app stores, which charge 15% to 30% fees on subscriptions and other digital transactions.
apple Epic has been banned from the app store After trying to circumvent restrictions that Apple claims will protect the security and privacy of iPhone users while also helping it recoup some of the investment that powers one of the world's most ubiquitous devices.
Last month, Epic won a jury trial against Google and its Play Store for apps on Android phones, in a case that mirrors its case against Apple.
A federal judge will have to decide what changes Google needs to make to the Play Store.
Apple stock fell more than 1% on Tuesday.
