The US Supreme Court has dismissed Apple’s appeal in an antitrust suit centered on its lucrative App Store, leading to a 2.6% dip in the company’s stock, Bloomberg is reporting.
The court’s concise rejection is poised to exert a substantial impact on the revenue streams of the Cupertino tech giant, according to the experts.
Both Apple and Epic Games, the creator of Fortnite, sought the court’s intervention in the appeal related to the case. The court’s dismissal led to a significant drop in Apple’s shares, settling at $181.09 in New York.
For those who aren’t aware, the Supreme Court’s ruling upholds the 9th US Circuit Court of Appeals’ decision from the previous year. The decision had found Apple in violation of California’s Unfair Competition Law, which curtailed developers’ ability to communicate about alternative payment systems.
Consequently, developers can now guide iPhone users to more cost-effective purchasing options outside Apple’s ecosystem, evading the hefty commission of up to 30% imposed by the company on digital goods and services sold through the App Store.
The Epic case marked the initial challenge to Apple’s App Store system, a revenue powerhouse generating billions annually.
The ramifications extend beyond Apple, with billions of dollars at stake in the in-app spending market. Research firm Sensor Tower projects in-app spending to reach $182 billion this year and $207 billion in 2025.
Competitors, notably Microsoft , are strategically positioned to capitalize on the evolving landscape, engaging in discussions about launching a mobile app store focused on gaming.
