In the latest development of an ongoing dispute, Fortnite developer Epic Games Inc. has escalated its battle against Apple Inc (NASDAQ: AAPL ). to the US Supreme Court on Wednesday. The gaming company contests Apple's App Store policies, particularly the 30% commission on digital sales, labeling it an antitrust violation.
The move to the Supreme Court follows a recent ruling by a Californian court that sided with Apple. Epic continues to challenge the iPhone maker's policies, with billions of dollars potentially at stake in digital sales revenue.
Epic's disagreement with Apple centers around the substantial commission that the tech giant levies on all digital transactions within its App Store. The game developer argues that this policy is restrictive and anti-competitive, giving Apple an unfair advantage in the digital marketplace.
This legal battle is part of a broader global scrutiny of Apple's business practices, particularly those related to its App Store. The outcome of this case could have significant implications for other app developers and digital businesses operating within Apple's ecosystem.
While the Californian court previously supported Apple's stance, Epic's decision to take the matter to the US Supreme Court signifies its determination to continue the fight. The financial stakes are high, with billions in potential revenue hinging on the court's final ruling.
In the midst of this legal battle, Apple's financial health remains robust. According to InvestingPro data, Apple's market cap stands at a staggering 2.67 trillion USD, and its P/E ratio is 28.34. Despite a slight decrease in revenue growth, the company reported a gross profit of 166.82 billion USD in the last twelve months leading to Q3 2023.
Apple's strong financial performance is also reflected in its dividend payments. As per InvestingPro Tips, the tech giant has consistently raised its dividend for 11 consecutive years and maintained these payments for 12 consecutive years. This financial stability is further highlighted by the fact that Apple's cash flows can sufficiently cover interest payments.
For more in-depth insights and tips on Apple's performance and investment potential, investors can visit InvestingPro's dedicated page for Apple. Here, they will find a total of 17 additional tips that can guide their investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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