The U.S. Supreme Court’s recent decision has dealt a blow to Epic Games, the creators of the immensely popular video game “Fortnite.” The court has refrained from implementing a federal judge’s injunction, giving Apple the opportunity to appeal this decision to the Supreme Court. In the meantime, Apple can maintain its current App Store guidelines. These guidelines prevent iOS apps from directing users to external payment systems or marketplaces, impacting the Web3 and NFT communities. So, what does all this mean? Let’s take a closer look.
TL;DR:
- Supreme Court’s decision favors Apple, allowing them to appeal against Epic Games’ injunction.
- Apple can maintain App Store guidelines therefore preventing iOS apps from directing users to external payment systems.
- Battle highlights conflict over App Store policies, potential impact on NFTs, Web3 gaming, and also alternative options for gamers.
Background on the Epic Games vs Apple Conflict
In 2020, Epic Games, the developer behind “Fortnite,” initiated an antitrust lawsuit against tech giant Apple. The crux of the issue centred around Apple’s App Store policies and the hefty commissions it charges, potentially reaching up to 30%. Furthermore, the heart of the dispute lay in Apple’s insistence that users exclusively obtain apps from its App Store and execute digital transactions within its ecosystem.
While Judge Yvonne Gonzalez Rogers dismissed Epic’s antitrust claims in 2021, she did find Apple in violation of California’s unfair competition laws. The focal point was Apple’s prohibition on developers guiding users toward alternate digital payment methods. Therefore, the ensuing injunction mandated Apple to permit developers to include links and buttons leading users to alternative payment systems within their apps.
The 9th U.S. Circuit Court of Appeals in San Francisco initially upheld this injunction, but the decision was temporarily suspended in July. Recent developments saw the U.S. Supreme Court, represented by Justice Elena Kagan, decline to override the 9th Circuit’s suspension of the injunction.
Implications for NFTs, Web3 Gaming, and Apple
Apple’s App Store policies have frequently faced criticism for impeding Web3 initiatives. These regulations aim to safeguard iOS users from financial uncertainties linked to virtual assets like cryptocurrencies and NFTs.
However, currently, mobile games incorporating NFTs and cryptocurrency tokens cannot guide users to external marketplaces due to Apple’s rules. A favorable Supreme Court ruling for Epic could potentially open up new avenues. This would enable apps to connect users with external NFT platforms and bypassing Apple’s 30% commission.
In June, a groundbreaking moment arrived as Immutable Games, a leading web3 game developer and publisher, introduced “Gods Unchained” to the Epic Games Store. This announcement ignited waves of excitement within the Web3 gaming community. Given these restrictions within Apple’s ecosystem, gamers seeking comprehensive NFT gaming experiences may need to explore alternative options.
