Gaming shares surge after judge ruling in favor of Epic

Gaming shares surge after judge ruling in favor of Epic

Shares in games like AppLovin and Zynga soared on Friday after a California judge said Apple couldn’t force developers to use in-app purchases, an issue that has long been a problem for mobile app companies. . was an important point.

Judge Yvonne Gonzalez Rogers ordered an injunction on Friday, ruling that Apple can no longer prevent developers from including links that take users away from Apple stores, where the company accounts for 15% of gross sales. % to 30%.

The ruling is the result of a lawsuit filed by developer Fortnite Epic Games.

“This allows businesses to dramatically increase revenue and lower the cost of goods,” said Dan Burkhart, CEO of Recurly, which processes subscription transactions for app developers. “Game companies are certainly going to be one of the biggest beneficiaries of this. Streaming media, entertainment and publishing – these categories are going to benefit greatly.”

AppLovin, which owns multiple game studios, is up more than 10%, while mobile game developer Zynga is up nearly 9%. Playtika, an Israeli games company that owns several popular iOS apps, jumped more than 9%, and Roblox, a children’s game app, jumped more than 4%.

In recent weeks, Apple has made several changes to its App Store rules, allowing some companies to access lower commission rates or avoid the mandatory 15-30% reduction. Earlier this month, the company said that content subscription apps can provide a link to their website, allowing developers to better convert potential iPhone customers into customers.

The game’s stocks weren’t the only ones to pick up on Friday. Other companies that pay income to app store operators, including Spotify, Match Group and Duolingo, have also made headlines.

To concern: This move could be a long-term victory for Apple

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