Apple App Store Fight Heads Back To Supreme Court In Epic Fees Battle – channelnews.com.au

Apple’s long-running App Store fight with Epic Games is heading back to the US Supreme Court, in a case that could have major implications for developers, including Australian app makers, trying to steer users away from Apple’s in-app payment system.
The Supreme Court has agreed to hear Apple’s appeal against a contempt ruling that found the company had failed to properly comply with a 2021 order requiring changes to its App Store rules.
As reported in May, Apple had already asked the Supreme Court to intervene after a contempt ruling found the company had undermined earlier App Store payment orders by charging commissions of up to 27% on purchases made through external links.
That earlier order came out of Epic Games’ antitrust lawsuit against Apple, which began in 2020 after the Fortnite maker challenged Apple’s control over in-app purchases and commissions on digital sales.
While Apple largely defeated Epic’s federal antitrust claims, the judge found the company had breached California law by stopping developers from directing customers to alternative payment options outside the App Store.

Apple later allowed developers to link users to external payment systems, but imposed a new commission of up to 27% on revenue generated through those links. Epic accused Apple of undermining the court order, arguing the fee made the alternative payment option largely meaningless.
The judge later found Apple in contempt and ordered the company to stop charging commissions on purchases made outside its software marketplace. She also referred the matter to federal prosecutors to consider whether Apple had committed criminal contempt.
The 9th US Circuit Court of Appeals upheld the contempt finding but said the lower court needed to consider what compensation Apple may be entitled to for use of its intellectual property, rather than banning all commissions outright.
Apple argues it should not be held in contempt for allegedly breaching the “spirit” of an injunction where no clear provision was violated.

“This is an important question of law and we are pleased the Supreme Court will hear our case,” Apple said.
Epic said it would continue to fight what it called Apple’s “junk fees” on third-party payments.
The US case also comes as Australia’s own Epic v Apple proceedings continue, with the ACCC granted permission earlier this year to intervene on remedies after a Federal Court ruling found Apple had misused its market power over app distribution and in-app payments.
The case will be heard in the Supreme Court’s next term, which begins in October. A ruling is expected in 2027.
For Australian developers, the case is another front in the global push to loosen Apple’s control over app payments, alongside regulatory pressure in Europe, the US and Australia.
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