Gaming shares rise after choose dominated Apple in favor of Epic
A Zynga logo, the American social game developer who operates social video game services.
Pavlo Gonchar | LightRakete | Getty Images
Gaming stocks 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 sticking point for mobile app companies .
Judge Yvonne Gonzalez Rogers ordered an injunction on Friday ruling that Apple can no longer prohibit developers from adding links that drive users away from Apple’s store, where the company generates 15 to 30% of gross sales.
The verdict was the result of a lawsuit by Epic Games, the developer of Fortnite.
“This enables companies to dramatically increase their sales and reduce their cost of goods,” said Dan Burkhart, CEO of Recurly, which processes subscription transactions for app developers. “Gaming companies will certainly be one of the biggest beneficiaries of this. Streaming media, entertainment and publishing – these categories will all benefit greatly. “
AppLovin, which owns multiple game studios, grew more than 10%, while mobile game developer Zynga grew about 9%. Playtika, an Israeli games company with numerous popular iOS apps, rose more than 9% and Roblox, a game app for children, increased more than 4%.
In the past few weeks, Apple has made several changes to its App Store rules that allow some companies to access lower commission rates or avoid mandatory 15-30% cuts. Earlier this month, the company announced that content subscription apps could provide a link to their website so developers can better convert potential iPhone customers into subscribers.
Wild stocks weren’t the only ones to rebound on Friday. Other companies that pay revenue to app store owners, including Spotify, Match Group, and Duolingo, also rose on the news.
SEE: That ruling could be a long-term victory for Apple