SCOTUS Won’t Weigh In On Apple’s Epic Battle

00:01
Speaker 1
If I asked you how many subscriptions you have, would you be able to list all of them and how much you're paying? If you would have asked me this question before I started using Rocket money, I would have said yes. But let me tell you, I would have been so wrong. I can't believe how many I had and all the money I wasting. Rocket Money is a personal finance app that finds and cancels your unwanted subscriptions, monitors your spending, and helps lower your bills. Rocket Money has over 5 million users and has helped save its members an average of $720 a year, with over 500 million in canceled subscriptions. Stop wasting money on things you don't use. Cancel your unwanted subscriptions by going to rocketmoney.com wondery. That's rocketmoney.com wondery. Rocketmoney.com com wondery.

00:54
Speaker 2
Wondery.

00:55
Speaker 3
You from Wondery. I'm David Brown, and this is business wars daily on this January 22. Happy Monday, everyone. We wanted to start this week with an update. About a month ago, we brought you a story about a lawsuit that could change the way various tech companies run their App Stores. For much of the past three years, Epic Games, which makes fortnite, battled both Apple and Google in court in separate cases. The reason? Well, to put it very simply, Epic took issue with how Apple and Google run their App Stores, namely, how they profit off of them. See, many apps, including mobile games, include some sort of in app payment feature, think subscriptions to premium content and things like that. Well, Epic argued that both Apple and Google refused to allow any other payment system besides their own in their App Stores.

01:50
Speaker 3
That means each company took a cut of profits from developers, and Epic called that a monopoly. Well, now, back in December, a court ruled that in the case of Epic versus Google, Epic was indeed correct that Google's app marketplace violated antitrust laws. Epic was naturally thrilled with the outcome. Epic's CEO took no time at all to tweet, quote, victory over Google, and noted that the win was significant for millions of developers who've had to pay up to exist in Google's app space. Well, now, the case against Apple wasn't so clear cut. Let's go back to 2021, when a judge handed down a verdict like its case against Google. Epic accused Apple of violating antitrust laws in the way it ran its App Store. But the verdict was kind of unclear, as one Verge reporter noted, quote, both sides lost, end quote.

02:42
Speaker 3
The judge concluded that Apple was not in fact violating antitrust laws in its App Store, which was a win for Apple. But the judge also ordered Apple to remove its anti steering policies. Those policies banned developers from telling users about alternatives to Apple's payment system, which could be considered something of a win for Epic. Right? Despite their small wins, neither Epic nor Apple appeared satisfied with the ruling. Apple appealed to the Supreme Court, which last week declined to take up the case with no explanation. Epic also appealed separately to SCOTUS, and again the justices said no can do. That means the ruling, handed down in 2021, will stand. Apple can no longer prevent apps from sharing information about alternative payments, but it's not violating antitrust laws in its App Stores. Still, the decision could be a major blow to the tech giant.

03:35
Speaker 3
In 2022, Apple estimated that developers generated $1.1 trillion in the App Store. Certainly a lot at stake, right? Apple generally takes a 30% cut of inapp purchases of digital goods and services. Sometimes that number is lower, like 15%, and the company says many app makers actually pay them nothing at all, per CNN. How much of a hit Apple will take remains to be seen, but one thing appears clear, Apple's piece of its App Store's trillion dollar pie just got significantly smaller. From wondery this is business wars daily. I'm your host, David Brown. Written and produced by Jessica Yarmoski. Our executive producers are Tina Rubio and Marshall Louis.

04:33
Speaker 2
Hey, Prime members. You can listen to business wars daily ad free on Amazon Music. Download the Amazon Music app today. Or you can listen ad free with Wondery plus in Apple Podcasts. Before you go, tell us about yourself by completing a short survey@wondry.com.

04:49
Speaker 4
Slash survey the holidays usually include hours on planes, cars, trains, crying baby next to you. Put on those noise canceling headphones. Mom and dad arguing about directions in the car, air pods in no matter.

05:03
Speaker 5
How you listen, we have the perfect headphones on. Distraction. A new season of the critically acclaimed.

05:08
Speaker 6
Dr. Death podcast is back with a.

05:10
Speaker 5
Story of miraculous cures, magic and murder.

05:14
Speaker 4
When a charismatic hotshot doctor announced revolutionary treatments for cancer and hiv, it seemed like the world had been given a miracle cure.

05:21
Speaker 6
Medical experts rushed to praise Dr. Serhat.

05:24
Speaker 5
Gumruku as a genius.

05:25
Speaker 6
But when the company's stock skyrocketed to over half a billion dollars, a team of private researchers dive into Sarah's background, and they begin to suspect the brilliant.

05:33
Speaker 3
Doctor is hiding a shocking secret binge.

05:37
Speaker 4
Dr. Death's bad magic right now, exclusively and ad free on Wondery plus in the Wondery app or on Apple Podcasts.

05:44
Speaker 6
Or if you have a whole cross country drive in front of you. Catch up on all four hit seasons.

05:48
Speaker 5
Of Dr. Death only on wondery Plus.