Apple to argue it faces competition in video game market in Epic lawsuit – Reuters

(Reuters) – Apple Inc said it prepares to argue that it faces plentiful competitors in the market for computer game transactions to defend itself against antitrust claims by “Fortnite” maker Epic Games, the iPhone maker stated on Thursday.Epic sued Apple

last year in federal court in California, alleging the 15%to 30% commissions that Apple charges for making use of its in-app payment systems and Apple’s longstanding practice of working out control over which apps can be installed on its devices total up to anticompetitive behavior. The dispute occurred after Epic attempted to implement its own in-app payment system in the popular “Fortnite” video game and Apple subsequently prohibited the video game from its App Store.The case is

to be heard in May in Oakland, California, by U.S. District Judge Yvonne Gonzalez Rogers, who will have to rule on which notion of a “market” is the proper one for evaluating Apple’s relocations for signs of anticompetitive conduct.Epic has framed its

case around the idea that Apple’s iPhones, with a set up base of more than 1 billion users, represent their own distinct market for software designers. Epic has actually argued that Apple has monopoly power over that market due to the fact that it decides how users can set up software application on the devices and states it abuses that power by requiring developers to provide their software application through the App Store, where developers undergo charges on some transactions.In a filing that Apple planned to make Thursday, the business declined that concept and stated the correct market to analyze the case is the computer game transaction market, that includes platforms such as Nintendo Co Ltd and Microsoft Corp’s Xbox video gaming consoles, which likewise restrict the software application that can work on their hardware and charge costs to developers.Apple stated it prepares to argue that consumers have numerous options on how to perform video game transactions, consisting of purchasing virtual tokens from game designers on other platforms such as Windows PCs and utilizing the tokens on iPhones with no

costs to the game developer.Reporting by Stephen Nellis in San Francisco; Editing by Leslie Adler

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