Apple Ordered to End Some App Store Conduct; Hill Reaction Mixed
A federal judge said Apple engaged in anti-competitive conduct without violating federal antitrust laws in Epic v. Apple (see 2010090015). Judge Yvonne Gonzalez Rogers ruled Friday Apple can’t block developers from directing users away from Apple in-app purchases. “While this…
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decision includes some relief for consumers, app developers, startups, and other innovators, it is clear that courts continue to narrowly interpret the antitrust laws in favor of monopolies and against consumers, workers, and small businesses,” wrote Reps. Jerry Nadler, D-N.Y., and David Cicilline, D-R.I. “This ruling reaffirms what we heard in our Senate hearing last spring: app stores raise serious competition concerns,” said Senate Antitrust Subcommittee Chair Amy Klobuchar, D-Minn. The ruling increases the likelihood of related legislation passing Congress, Cowen emailed investors. Apple may seek “a quick injunction against the enforcement” of Gonzalez Rogers’ “revisions to the App Store,” wrote analyst Paul Gallant. The company “has decent shot at near-term injunction,” if it seeks one, with a ruling on that in “perhaps 1-2 months,” he added. The judge "affirmed what we’ve known all along: the App Store is not in violation of antitrust law," an Apple spokesperson emailed. "As the Court recognized ‘success is not illegal.’ Apple faces rigorous competition in every segment in which we do business." The company didn't answer our question about plans for an injunction request.