Judge dismisses Apple’s claim that Epic Games committed theft in Fortnite feud

After suffering a big loss last month when a judge ruled that Apple could continue to ban Epic Games’ Fortnite from the App Store, the North Carolina video game maker got some good news on Tuesday in its high-profile antitrust lawsuit with the iPhone maker.

U.S. District Judge Yvonne Gonzalez Rogers threw out two of Apple’s biggest counterclaims, saying Apple could not sue Epic Games for theft and for monetary damages beyond breach of contract.

The claim of theft stemmed from Epic Games’ decision in August to create its own payment system within the popular Fortnite game, which got it kicked off the App Store. The payment system allowed Epic to bypass the 30% fee that Apple levies on any payments made on an iPhone.

Epic then sued Apple, accusing the technology giant of violating antitrust law.

Weeks later, Apple responded with its own lawsuit, arguing that Epic Games stole money that should have been paid in fees.

Gonzalez Rogers said Tuesday, however, that this dispute should focus on Apple’s claim that Epic’s action was a breach of contract and Epic’s broader claim that Apple’s App Store is monopolistic.

“This is a high-stakes breach of contract case and an antitrust case and that’s all in my view,” Gonzalez Rogers said during the hearing, according to Bloomberg News.

Epic declined to comment on the judge’s decision.

At the hearing, an Apple lawyer argued that Epic has taken money that “should be in Apple’s possession,” Courthouse News reported.

But Gonzalez Rogers responded by saying Apple doesn’t own the funds that Epic has earned from Fortnite. Apple only has a claim to the 30% fee.

But “the 30% is in dispute,” the judge said, according to Courthouse News.

The case is expected to go to trial at some point next year, though a resolution will likely take more than a year and will likely proceed to a higher court in the future.

In a statement to The News & Observer, Apple said it “respectfully disagree(s)“ with the judge’s decision regarding its claims of theft.

“It is clear, however, that Epic breached its contract with Apple,” the company said. “... In ways the Court described as deceptive and clandestine, Epic enabled a feature in its app which was not reviewed or approved by Apple, and they did so with the express intent of violating the App Store guidelines that apply equally to every developer who sells digital goods and services. Their reckless behavior made pawns of customers, and we look forward to making it right for them in court next May.”

This story was produced with financial support from a coalition of partners led by Innovate Raleigh as part of an independent journalism fellowship program. The N&O maintains full editorial control of the work. Learn more; go to bit.ly/newsinnovate

This story was originally published November 11, 2020 at 10:51 AM with the headline "Judge dismisses Apple’s claim that Epic Games committed theft in Fortnite feud."