Apple obtains partial reversal of decision in antitrust lawsuit filed by Epic Games | Businesses

The San Francisco-based 9th U.S. Circuit Court of Appeals, ruling on a lawsuit filed by Fortnite creator Epic Games, said parts of a judge’s April order holding Apple in contempt of court for violating an earlier ruling were too broad and should be changed.

But the appeals court upheld most of the contempt ruling and an earlier injunction against Apple in the case.

The three-judge panel modified part of the lower court’s ruling that blocked Apple from charging commissions or fees related to consumer purchases that don’t occur on Apple’s platform. The appeals court’s decision gives Apple the opportunity to claim a reasonable commission on these transactions.

Epic Games CEO Tim Sweeney welcomed the court order, which he said prevents Apple from imposing “giant abusive fees” on developers. He said the decision would benefit developers and consumers.

“After years of obstruction from Apple, we are finally going to see large-scale change,” Sweeney said.

Apple did not immediately respond to a request for comment.

Epic Games filed a lawsuit in 2020, seeking to ease Apple’s control over transactions in apps that use its iOS operating system and its restrictions on how apps were distributed to consumers.

Apple won most of the lawsuit, but was forced by a 2021 court injunction to allow developers to include links in their apps directing users to alternative purchasing methods.

Apple removed some restrictions but added new ones, including charging developers a 27% commission for purchases made outside of the App Store within seven days of clicking a link. Apple charges developers a 30% commission on App Store purchases.

Epic complained that the new 27% fee violated the previous injunction and asked the court to find Apple in contempt. Apple has denied violating court orders.

U.S. District Judge Yvonne Gonzalez Rogers ruled in April that Apple had disobeyed its 2021 injunction and imposed a new ban on commissions tied to out-of-app purchases. She also referred the company to federal prosecutors for possible criminal contempt.

The appeals court ruling said that while Apple should be able to charge a commission on external link purchases, there should be some limitations.

Apple argued in its appeal that the new order improperly expanded the original injunction. The appeals court order rejected Apple’s arguments that the injunction should not have applied beyond Epic Games itself.