SAN FRANCISCO – Apple has launched a vigorous appeal against a court ruling that restricts its App Store practices, marking a significant development in its ongoing legal battle with Epic Games.
Breaking: Apple’s Legal Counterattack
After weeks of silence in the Epic Games, Inc. v. Apple Inc. case, Apple’s legal team has returned to the Ninth Circuit with a forceful response. The tech giant is not only contesting the initial ruling but is also requesting the reassignment of the case to a different judge if it returns to the district court.
According to a report by Law360, Apple’s latest appeal challenges the district court’s decision to prohibit it from charging commissions on in-app purchases made outside its ecosystem.
Immediate Impact
The appeal comes in response to a 2021 injunction that favored Epic Games, allowing developers to direct users to alternative payment methods. In April, a new ruling found Apple in civil contempt for allegedly violating this injunction, leading to a broader order by U.S. District Judge Yvonne Gonzalez Rogers.
The injunction barred Apple from taking any commission on purchases made outside its in-app payment system and restricted developers from linking to third-party payment platforms.
Key Details Emerge
In its recent filing, Apple argues that the updated order unfairly penalizes it for actions not deemed illegal under California’s Unfair Competition Law (UCL). The company asserts that civil contempt should enforce existing orders, not introduce stricter measures:
“The district court’s new prohibition against any commission on sales facilitated by Apple’s own platform has no basis in the original injunction, is fundamentally unfair, violates the UCL, and amounts to a taking in violation of the U.S. Constitution,” Apple stated.
Industry Response
Apple’s appeal also defends its 27% commission rate for purchases via external links, arguing that even if considered excessive, eliminating commissions entirely is not the solution:
“There is a vast gulf between finding that Apple’s 27% headline commission was too high and declaring that Apple is no longer allowed to charge any commission at all,” the filing noted.
By the Numbers
- Apple seeks to vacate the injunction banning all commissions on external purchases.
- The appeal aims to strike down five additional restrictions on steering.
- Apple requests the reversal of the civil contempt finding.
- The company calls for the termination of injunctive relief based on new California precedent.
- Apple suggests reassignment to a new judge if the case is remanded.
What Comes Next
The request for a new judge is particularly noteworthy. Apple argues that reassignment is justified when the original judge might struggle to remain impartial or when it is necessary to maintain the appearance of justice.
In a statement to Law360, an Apple spokesperson expressed concern over the injunction’s impact on user security and the App Store’s integrity:
“Apple has spent decades earning users’ trust in the security, privacy, and innovative technology that the App Store provides, and we’re deeply concerned that this injunction now prevents Apple from continuing to protect our users in important ways.”
Background Context
This legal battle traces back to 2021 when Epic Games secured an injunction allowing developers to bypass Apple’s payment system. The subsequent ruling in April intensified the conflict, with Judge Rogers imposing more stringent conditions on Apple.
Future Implications
As the appeal progresses, the tech industry is closely monitoring its potential impact on app store operations and developer relations. The outcome could set a precedent for how digital marketplaces manage commissions and third-party payment integrations.
Epic Games has declined to comment on the ongoing developments.
