Apple’s lucrative App Store dealt blow by judge in epic antitrust case

NEW YORK. Apple Inc. was ordered by a court to change the way it operates its lucrative App Store in a sweeping ruling against the iPhone maker.

A federal judge granted an injunction sought by Epic Games Inc. yesterday but also ordered the game maker to pay damages to Apple. The order will take a bite out of the profitability of the App Store: according to analysts the App Store takes in more than $20 billion a year with a profit margin above 75 per cent.

The decision is a significant setback for the world’s most valuable company as it faces growing antitrust scrutiny from lawmakers and global regulators. Apple is expected to appeal, setting the stage for the fight to carry on for at least another year and possibly make its way to the US Supreme Court.