The ongoing legal battle between Apple and Epic Games has taken another turn as the 9th U.S. Circuit Court of Appeals delivered a mixed ruling on Apple”s appeal concerning a contempt order. This development highlights Apple”s ongoing struggle to defend its App Store fees amidst accusations of monopolistic practices.
The court”s decision, issued recently, upheld a lower court”s finding that Apple had willfully violated a previous injunction, which mandated that developers be allowed to direct consumers to alternative payment methods. Judge Yvonne Gonzalez Rogers originally deemed Apple”s actions a “willful violation” and described them as a “cover-up” aimed at protecting billions in revenue.
According to the ruling, Apple was found guilty of imposing a 27% fee on transactions that occur outside of the App Store, which Epic argued was in direct violation of the injunction. The appeals court affirmed the contempt ruling against Apple while urging Judge Gonzalez Rogers to reevaluate the commission structure that Apple can impose on developers utilizing its intellectual property. The court stated, “Apple is entitled to some compensation for the use of its intellectual property that is directly used in permitting Epic and others to consummate linked-out purchases.”
Since the start of this legal dispute over five years ago, Epic Games has accused Apple of stifling competition within its App Store ecosystem. The tension escalated after Apple instituted a new commission rate, which, although reduced from 30% to 27% for certain transactions, was still deemed excessive by Epic. The game developer had claimed that this move flouted the original court order.
In another significant development, Fortnite has been reinstated on the U.S. Google Play Store following a court order. Epic Games announced the return of its popular title to the platform, emphasizing ongoing cooperation with Google to finalize a settlement related to their own legal battles. Like Apple, Google had removed Fortnite from its store due to Epic”s circumventing of traditional in-app payment systems.
While the recent court ruling did not label Apple as a monopolist, it did recognize the necessity for developers to have the option to direct customers to alternative payment solutions. This ruling contrasts sharply with Google”s recent legal losses, which led to significant changes in how Google handles app payments and commissions.
Epic Games CEO Tim Sweeney lauded the ruling as a “comprehensive solution” that reinforces Android”s status as an open platform. This ruling not only impacts Apple but also sets a precedent for how app store policies may evolve in the future, potentially benefiting developers and consumers alike.
