Apple has been dealt a fresh blow in its appeal in a protracted lawsuit against Epic Games. The 9th US Circuit Court of Appeals issued a mixed ruling on its appeal of a contempt order, delivering a loss to Apple in some respects while at the same time granting partial relief.
Apple was held in contempt by Judge Gonzalez Rogers, who tagged its actions a “willful violation” and a “cover-up” to preserve billions in revenue. The court also sided with Epic Games in its long-running dispute with Apple, by upholding a lower-court contempt ruling against the company. It also redirected a judge to decide what commission the company is allowed to charge developers on transactions that occur outside of the App Store.
Apple continues legal tussle with Epic Games
In the 54-page ruling, the 9th US Circuit Court of Appeals in San Francisco found Apple guilty of violating a lower court’s injunction by imposing a 27% fee on transactions and affirmed US District Judge Yvonne Gonzalez Rogers’ decision to hold the company in contempt. At the same time, the three-judge panel urged Gonzalez Rogers to reconsider what commission Apple can charge developers for use of its intellectual property.
“Apple is entitled to some compensation for the use of its intellectual property that is directly used in permitting Epic Games and others to consummate linked-out purchases,” the court claims. It is the latest episode in the feud between Apple and Epic Games. The feud, which has gone on for more than five years, started with Epic accusing Apple of illegally blocking competition to its App Store.
Rogers’ ruling in April accused Apple of deliberately flouting her 2021 order to allow developers to direct consumers to cheaper payment options online. Apple enjoys a 15% to 30% cut of most in-app purchases, a fact that has long angered developers and one Apple sought to protect by reducing the commission it charges by 3% from 30% for purchases made outside the App Store within seven days of clicking a link.
Epic Games had complained about the new 27% commission, claiming it flouted the earlier injunction and urged the court to hold Apple in contempt, which it ultimately did. Apple’s appeal argued that the new order had improperly expanded on the original injunction. The appeals court order rejected Apple’s arguments that the injunction should not have applied beyond Epic Games itself.
The win against Apple comes just as Epic Games’ popular battle royale, Fortnite, secured a return to the US Google Play Store following a court order. “Fortnite is back on the Google Play Store in the U.S. following Google’s compliance with the U.S. District Court’s injunction. We’re continuing to work with Google to seek court approval of our settlement. Stay tuned for news of Fortnite’s return to Google Play for the rest of the world,” an official announcement read.
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