London Daily

Focus on the big picture.
Friday, Sep 04, 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
Scottish Tech Company PureLifi Enters Administration With More Than 40 Job Losses
Scottish Government Names Alyn Smith Innovation and Education Minister
Green Party Co-Leader Zack Polanski to Contest By-Election for Keir Starmer’s Former Seat
Palestine Action Activists Appeal Terrorism-Related Prison Sentences
PwC Report Highlights Persistent Regional Spending-Power Divide Across Britain
UK Names Hundreds of Employers for Minimum Wage Violations
UK Commits £400 Million to International Tropical Forest Fund
UK Extends £2 Bus Fare Cap Across England Through 2027
UK Warns Travellers as US-Iran Tensions Disrupt Middle East Security and Shipping
Andy Burnham Faces Kemi Badenoch in First Prime Minister’s Questions
Kemi Badenoch Names Andrew Griffith Shadow Chancellor in Conservative Reshuffle
UK Treasury and Markets Focus on Fiscal Headroom Ahead of Autumn Budget
UK Government Reverses Early Release Plans for Serious Violent and Sexual Offences
UK and France Review Border Cooperation After 48,000 Small-Boat Crossings Prevented
UK Growth Outlook Weakens as Inflation and Energy Costs Rise
Breeding Tropical Mosquitoes Discovered in East London
Sadiq Khan Agrees to Search of Digital Communications in Palantir Lawsuit
Scottish Protesters Call for Moratorium on AI Data Centre Expansion
Uber Drivers Bring London Class Action Over Algorithmic Management
Reform UK Accepts £4 Million Donation From Cryptocurrency Billionaire Pardoned by Trump
Justice Secretary Tightens Early Release Scheme to Exclude Manslaughter Offenders
Kemi Badenoch Reshuffles Conservative Team as Reform UK Pressure Grows
British Mortgage Rates Rise as Global Bond Sell-Off Pushes Up Borrowing Costs
UK Records Hottest Summer on Record in 2026
UK Government Urges Households to Stock Essential Supplies Ahead of Severe El Niño Risk
UK Prepares Targeted Sanctions Over Israeli Settlements in West Bank
Reform UK Faces Electoral and Police Scrutiny Over Foreign Donation Allegations
UK and France Expand Channel Migration Cooperation as Trade Tensions Surface
UK Marks Merchant Navy Day With Tribute to Civilian Seafarers
Burnham Pays Tribute to Two Police Officers Killed on Duty in Northern England
Booking.com Left Fake Downing Street Listing Online for Two Months, Which Says
Burnham and Macron to Review UK-France Cooperation on Channel Crossings
UK Business Confidence Improves Slightly but Investment Concerns Persist
Burnham Faces Pressure Over Future North Sea Oil and Gas Licences
Burnham Pushes Wider English Devolution Through ‘Number Ten North’
British Chambers of Commerce Raises 2026 UK Growth Forecast to 1%
Keir Starmer Resigns as Holborn and St Pancras MP, Triggering By-Election
UK Chancellor Faces Tighter Budget Headroom as Long-Term Borrowing Costs Rise
UK Government Weighs Thames Water Nationalisation as Financial Crisis Deepens
Prime Minister Andy Burnham Faces First Commons Questions Over Tax and Spending Plans
Eleven British Seafarers Receive Merchant Navy Medal
Which? Creates Fake 10 Downing Street Rental Listing to Expose Booking.com Vetting Weaknesses
BP Appoints New Chairman in Effort to Stabilise Leadership
Aberdeen Sells Hydrogen Bus Fleet at Heavy Loss After Green Transport Experiment
UK Records Hottest Summer on Record as Climate Change Intensifies Extreme Heat
Scotland Pledges to End Temporary Accommodation for Children and Build 111,000 Affordable Homes
DNO Agrees $396 Million Deal to Acquire Capricorn Energy
Uber and Wayve Launch UK’s First Supervised Autonomous Ride-Hailing Service in London
Britain Expected to Avoid New US Tariffs Targeting European Union
Middle East Conflict Pushes UK Energy Costs Higher and Revives Inflation Concerns
×