Apple is heading into a courtroom faceoff against the company behind the popular Fortnite video game, reviving a high-stakes antitrust battle over whether the digital fortress shielding the iPhone’s app store.
SAN FRANCISCO—Apple is heading into a courtroom faceoff against the company behind the popular Fortnite video game, reviving a high-stakes antitrust battle over whether the digital fortress shielding the iPhone’s app store illegally enriches the world’s most valuable company while stifling competition.
It’s a dispute likely to remain unresolved for a long time. After hearing Monday’s arguments in San Francisco, the appeals court isn’t expected to rule for another six months to a year. The issue is so important to both companies that the losing side is likely to take the fight to the US Supreme Court, a process that could extend into 2024 or 2025.
That ironclad control over the app store has enabled Apple to impose commissions that give it a 15 percent to 30 percent cut of purchases made for digital services sold by other companies. By some estimates, those commissions pay Apple $15 billion to $20 billion annually—revenue that the Cupertino, California, company says helps cover the cost of the technology for the iPhone and a store that now contains nearly 2 million mostly free apps.
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