Apple has escalated its legal battle with Epic Games by petitioning the U.S. Supreme Court to review a contentious contempt judgment related to App Store fees on third-party payment methods, potentially reshaping commission structures for app developers.
- Supreme Court to decide scope of contempt in App Store fee dispute
- Apple challenges commission-related ruling impacting third-party payment links
- UK regulator also targets app store restrictions on alternative payment methods
What happened
Apple is contesting a contempt finding issued by a federal court in the ongoing litigation with Epic Games over App Store commission fees. The dispute centers on a prior judicial order requiring Apple to permit developers to include links to alternative payment methods outside its ecosystem. Apple implemented this change but charged a 27 percent commission on payments made through these linked methods, which Epic Games argued was a violation of the order.
The 9th Circuit Court of Appeals upheld the contempt ruling, concluding that Apple's fees effectively undermined the court’s intent by imposing a prohibitive cost on developers, deterring them from updating their apps to comply with the new rules. After losing the appeal, Apple turned to the Supreme Court, seeking to clarify contempt standards and defend its commission structure.
Why it matters
The Supreme Court's decision will determine whether courts can hold companies in contempt for violating the 'spirit' rather than the explicit terms of an injunction. Apple argues that the 9th Circuit’s approach conflicts with standards in other jurisdictions, which require clear and unambiguous violations to justify contempt findings. The stakes are significant, as millions of app purchases and commissions could be impacted.
Moreover, the judgment influences both U.S. app store regulatory frameworks and global markets, with regulators closely watching the case’s outcome to guide policy decisions. Apple raised concerns that adverse rulings might restrict its ability to adjust commission rates worldwide, due to spillover effects and concurrent regulatory scrutinies.
What to watch next
The Supreme Court will soon rule on whether the contempt finding stands and, by extension, the permissibility of Apple's commission charges on third-party payment link-outs within apps on iOS devices. If the court sides with Apple, it may limit the scope of judicial enforcement regarding injunctions and potentially allow Apple to maintain higher commissions.
Concurrently, regulatory bodies like the UK's Competition and Markets Authority are moving forward with investigations and actions targeting similar app store practices by Apple and Google. These developments suggest that the broader legal and regulatory environment around app payments and commissions will remain dynamic and closely contested internationally.