Tech

Apple seeks Supreme Court intervention to limit Epic Games App Store injunction

Apple petitions the US high court to overturn a Ninth Circuit contempt order regarding external payment fees, while Epic Games dismisses the move as a delay tactic.

Author
Owen Mercer
Markets and Finance Editor
Published
Draft
Source: TechCrunch · original
Apple says Epic lawsuit shouldn’t reshape App Store rules for all developers
Tech giant argues ruling should not bind non-parties or reshape platform rules for all developers

Apple has formally petitioned the US Supreme Court to narrow the scope of an injunction originally secured by Epic Games and to overturn a Ninth Circuit ruling that found the company in civil contempt. The tech giant argues that the legal dispute between the two parties should not result in sweeping changes to App Store rules for all developers, nor should it bind non-parties to the litigation such as Microsoft and Spotify.

The injunction, stemming from the 2020 legal battle over commission structures, requires developers to include links in their apps that direct users to alternative payment options outside Apple’s system. While Apple complied by allowing these external links, it continued to charge a 27 per cent commission on transactions made through them. The Ninth Circuit ruled that this fee structure defeated the purpose of the injunction, leading to the civil contempt order.

In its new petition, Apple contends that the lower court’s order did not explicitly prohibit fees on external purchases. The company asserts that it did not violate the injunction by charging commissions, arguing that a federal court cannot hold a party in contempt for violating the spirit of an order when the text itself left room for interpretation regarding commissions. Apple further notes that Epic Games never brought a class action and failed to demonstrate that enjoining Apple’s conduct against all other developers was necessary to provide relief.

Epic Games has criticised Apple’s latest legal manoeuvre as a delay tactic designed to avoid opening up payment competition. The company announced that Fortnite has returned to the US App Store globally, excluding Australia, based on its belief that the courts will not allow Apple’s fee structure to stand. Epic described the petition as a final attempt to delay the conclusion of the case and protect its revenue model.

The Supreme Court recently rejected Apple’s previous request to pause additional proceedings regarding the sanctions. The outcome of this latest petition remains uncertain, with potential implications for how App Store rules are applied to developers across the platform. The legal battle, which began in 2020, continues to unfold with significant financial and regulatory stakes for major tech firms.

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