London Daily

Focus on the big picture.
Sunday, Jul 05, 2026

Microsoft, Justice Dept., 35 states accuse Apple of hurting competition in Epic Games fight

Microsoft, Justice Dept., 35 states accuse Apple of hurting competition in Epic Games fight

The lawsuit accuses Apple of using its app store to stifle competition and maintain a monopoly over the app market

The Justice Department, 35 state attorneys general and Microsoft are accusing Apple of hurting competition in amicus briefs filed Friday.

The briefs come in response to Fortnite creator Epic Games' ongoing legal battle with Apple over the tech giant's app store policies that began in 2020.

"Apple’s conduct has harmed and is harming mobile app developers and millions of citizens within the [states'] boundaries," the state attorney generals' brief led by Utah Attorney General Sean Reyes states. "Meanwhile, Apple continues to monopolize app-distribution and in-app payment solutions for iPhones, stifle competition, and amass supracompetitive profits within the almost trillion-dollar-a-year smartphone industry."

This illustration picture shows a person logging into Epic Games' Fortnite on their smartphone in Los Angeles on August 14, 2020.


The complaint added that "Apple must account for its conduct under a complete rule of reason analysis."

Epic Games' lawsuit against Apple began when it announced plans to implement its own in-app payment system in Fortnite last year to avoid paying Apple a commission fee of up to 30%.

In response to the move, Apple removed Fortnite from its app store and restricted access to its iOS developer account. Epic fired back with an antitrust lawsuit, accusing Apple of using its app store to stifle competition and maintain a monopoly over the app market.

iPhone 11 and iPhone 11 Pro models are displayed as customers shop at Apple's flagship 5th Avenue store on September 20, 2019 in New York City.


The briefs filed in the U.S. Court of Appeals for the Ninth Circuit back Epic Games' recent appeal against a ruling in Oakland, California, district court. The ruling found Apple's commission fees were not anti-competitive, but that the tech giant did engage in some anti-competitive behavior under California's Unfair Competition law.

The 35 attorneys general, Justice Department and Microsoft are now urging a reconsideration of its ruling as it related to the Sherman Act.

"The district court committed several legal errors that could imperil effective antitrust enforcement, especially in the digital economy," the Justice Department said in its brief. "The court read Sections 1 and 2 of the Sherman Act narrowly and wrongly, in ways that would leave many anticompetitive agreements and practices outside their protections."

Gamers play the video game 'fortnite' developed by Epic Games on a laptop from the Razer company during the 'Paris Games Week' on October 25, 2018 in Paris, France.


The Justice Department also described the district court’s opinion as "ambiguous."

Microsoft also filed a brief stating that if "Apple is allowed to step between any company with online services and users of iPhones, few areas of the vast mobile economy will be safe from Apple’s interference and eventual dominance," as The New York Post reported.

"Consumers and innovation will suffer — indeed, they already have," the company said, adding that the "district court’s reasoning failed to give sufficient weight to these immense competitive risks and, if broadly affirmed, could insulate Apple from meritorious antitrust scrutiny and embolden further harmful conduct."

An Apple spokesperson said in a statement to FOX Business that it is "optimistic that the ruling will be affirmed on appeal, and that Epic’s challenge will fail."

"We remain committed to ensuring the App Store is a safe and trusted marketplace for consumers and a great opportunity for developers," the spokesperson said.

Apple's stock price climbed more than 3.5% in after-hours trading following the release of its highest quarterly revenue increase in the company's history on Thursday at $123.9 billion. In early January, the tech behemoth became the first U.S. company to hit $3 trillion in market value. Microsoft was valued at around $2.5 trillion at the time.

Newsletter

Related Articles

0:00
0:00
Close
Morocco and France Advance as 2026 FIFA World Cup Enters Quarterfinals.
Historic 2026 Tour de France Opens in Barcelona With Revamped Team Time Trial.
Global Mergers and Acquisitions Approach $4 Trillion Defying Geopolitical Tumult.
Negotiators Advance 20-Point Framework for Gaza Ceasefire and Demilitarization.
OECD Warns Middle East Conflict Will Depress Global Economic Growth.
Ukrainian Drones Strike Major Oil Terminal in St. Petersburg.
World Meteorological Organization Issues Urgent Alert Over Rapidly Intensifying El Niño.
United States Commemorates 250th Anniversary With Diplomatic Summits and Global Flotilla.
Iran Begins Days-Long Funeral for Supreme Leader Khamenei Amid Strait of Hormuz Standoff.
Technology giant reports surging carbon emissions driven by artificial intelligence infrastructure demands.
Artificial intelligence adoption accelerates workforce reductions across the technology and financial sectors.
Global technology and financial conglomerates collaborate to launch a new stablecoin standard.
United States regulators lift export restrictions on a major frontier artificial intelligence model.
Royal Society Exhibition Highlights Growing Focus on Public Trust in Science
Energy Costs and Supply Chain Risks Continue to Shape UK Business Strategy
Rapid Rise in Artificial Intelligence Adoption Reshapes UK Corporate Operations, ONS Says
UK Businesses Turn Defensive as Economic Outlook Weakens, Institute of Directors Data Shows
UK Government Faces Criticism Over Late Extension of Pub Hours for England Match
Inquest Continues Into Death of Noah Donohoe as Jury Deliberates Findings
Calls for Stronger Wildlife Attraction Safety Rules After Crocodile Enclosure Injury
City Fire Under Control After Major Blaze Sends Smoke Across Urban Area
Police Investigation Continues After Officer Killed During Road Closure Duties
Blackpool Hotel Fined £120,000 After Electric Shock Incident Involving Child
Whistleblowers Allege Delays in UK Special Educational Needs Support Services
Calls Grow for Improved Support for UK Armed Forces Personnel Facing Health Conditions
Rising UK Energy Price Cap Increase Prompts Wider Concerns Over Household Pressures
UK Businesses Remain Concerned Over Global Conflict Risks to Supply Chains, ONS Finds
Office for National Statistics Reports Rising Adoption of Artificial Intelligence Across UK Businesses
Institute of Directors Reports Deepening Pessimism in UK Business Confidence Index
England Prepare for World Cup Round of 16 Match Against Mexico in Mexico City
Royal Society Summer Science Exhibition Concludes in London After Week-Long Showcase of Research
Silverstone Hosts British Grand Prix as Lando Norris and Lewis Hamilton Lead Home Crowd Expectations
Cornwall Van Dwellers Face Homelessness Risk as Council Tightens Enforcement
Police Investigate Stabbing of Iranian Journalist in London
Rare Copy of US Declaration of Independence Discovered in UK Archive
Department for Education Data Shows Persistent Literacy Gap Among Disadvantaged White Pupils
London Casino Faces Legal Action Over Alleged Tip Distribution Practices
England Records Hottest June on Record as Heatwave Disrupts Services Nationwide
UK Foreign Office Ends Overseas Education Programme for Women and Girls After Shortfall
UK Lawmakers Call for Urgent Action to Preserve Historic Outdoor Lidos
Police Criticise Extended Pub Opening Hours for England World Cup Fixture in Mexico
UK Safety Authorities Warn Parents Over AI-Generated Child Abuse Imagery Risks
Reform UK-Led Council Struggles to Attract Sponsors for Union Flag Promotion Scheme
OpenAI UK Investment Uncertainty Grows After Reported Setback on Stargate Data Centre Site
British Medical Association Warns of Severe Financial Crisis and Possible Staff Cuts
UK Devolution Debate Intensifies as Celtic Nations Prepare Breakup Contingency Plans
Starmer Signals Labour Transition as Burnham Emerges as Potential Successor
UK Government Consults International Partners on Maritime Trade Security and Energy Market Stability
Rare Revolutionary-Era Documents Discovered by UK Archives and Undergoing Authentication
UK Consumer Confidence Remains Deep in Negative Territory as Household Spending Stays Cautious
×