In one of the biggest tech court cases in U.S. history, gaming company Epic Games lost its lawsuit against Apple on Sep. 10, 2021. It all started in Aug. 2020, when Apple banned Fortnite, Epic’s top-selling video game, from its App Store. Epic had implemented a feature that allowed users to make in-app purchases without Apple’s in-app purchase system. Apple charges a 30 percent commission, which many app developers have deemed excessive.
After the company behind the iPhone claimed that Epic violated guidelines, the gaming company responded promptly by filing a lawsuit against Apple. Among the lawsuit's claims, Epic Games accused Apple of being a “behemoth seeking to control markets” that imposes "anti-competitive restraints.”
On Sep. 10, U.S. District Judge Yvonne Gonzalez Rogers ruled that Apple wasn’t an antitrust monopoly. She also ruled that the gaming company did indeed breach its contract with Apple by having an alternative in-app purchase system. To compensate for damages, Apple was awarded 30 percent of the $12 million Epic Games collected from iOS users between Aug. and Oct. 2020, along with 30 percent of any revenue Epic collected since then.
Rogers suggested that although Apple’s 30 percent commission for in-app purchases seemed excessive and anticompetitive, Epic chose to argue that there should be no commission at all. However, she ordered that Apple cannot force app developers to use only in-app purchasing, a significant milestone—developers can now provide links to other methods of making payments for in-app purchases.
This order will reportedly go into effect 90 days from Sep. 10 unless Apple gets a higher court to halt the injunction. Epic plans to appeal the court decision, according to The Verge. Even though Apple didn’t lose the case, its stock fell more than four percent on Sep. 10. Meanwhile, gaming stocks gained, and some look like good buys.
What are some of the best gaming stocks to buy right now?
Electronic Arts (EA)
Specializing in sports games, Electronic Arts has seen great success with its products and breaks sales records yearly. Last week, EA announced that its year-over-year sales were up approximately 20 percent. It’s also expected that its upcoming game, Battlefield 2042, could be the biggest release of the game’s series yet, competing with other worldwide games. EA stock rose more than three percent on Sep. 10.
Activision Blizzard (ATVI)
Another well-known gaming company, Activision has created games such as Call of Duty, which reportedly generated over $3 billion last year. Given that ATVI's current price is approximately $80 and Forbes has given it a target of $119, it has room for growth. Activision’s stock increased over three percent on Sep. 10.
Roblox has been a popular stock after it was publicly listed in Mar. 2021 and Cathie Wood’s ARK Invest reportedly bought over 500,000 shares. Partnering with companies such as Sony and Hasbro, Roblox has a lot more to add to its gaming platform. The stock jumped over four percent on Sep. 10 and is currently 20 percent above its IPO price.