On Wednesday, the US Supreme Court ruled against Epic Games, the developer of Fortnite, in its legal dispute with Apple. Justice Elena Kagan declined to enforce a federal judge’s order that might force Apple to change its payment procedures within its App Store, as reported by Reuters.
Quick Facts
- Justice Kagan denied Epic’s appeal to overturn a decision from the 9th US Circuit Court of Appeals, effectively delaying the implementation of an injunction issued by US District Judge Yvonne Gonzalez Rogers.
- Epic launched an antitrust lawsuit in 2020, accusing Apple of being an illegal monopolist by requiring users to obtain apps exclusively through its App Store and purchase digital content within an app using Apple’s system, resulting in fees up to a 30% commission.
- In 2021, Rogers dismissed Epic’s antitrust claims against Apple but found that Apple violated California’s unfair competition law by prohibiting developers from directing users to alternative methods of purchasing digital content, potentially saving users money.
Kagan, on behalf of the Supreme Court, rejected Epic’s request to reverse a ruling from the San Francisco-based 9th US Circuit Court of Appeals, thereby postponing the enforcement of an injunction issued by US District Judge Yvonne Gonzalez Rogers. This injunction had stopped certain App Store rules as Apple appeals to the Supreme Court.
The 9th Circuit had previously upheld the injunction in April, but in July, the Court suspended its enforcement. Kagan oversees urgent matters within the Supreme Court arising from a group of states, including California.
Epic filed an antitrust lawsuit in 2020, alleging that Apple was an illegal monopolist by requiring users to obtain apps only through its App Store and purchase digital content within an app using Apple’s system, which incurs fees that can reach a 30% commission.
In 2021, Rogers dismissed Epic’s antitrust charges against Apple but ruled that Apple had violated California’s unfair competition law by prohibiting developers from guiding users toward alternative methods of purchasing digital content, potentially saving users money.
Rogers’ injunction required Apple to allow app developers to include links and buttons that direct users to other payment channels for digital content within their apps.
Apple, preparing an appeal to the Supreme Court, sought to stop the enforcement of the injunction, arguing that Rogers had misinterpreted the extent of its rules by applying them to all U.S. app developers, rather than just Epic.
In a statement to the 9th Circuit, Apple said, “Apple will be required to change its business model to comply with the injunction before judicial review has been completed. The undisputed evidence establishes that the injunction will limit Apple’s ability to protect users.”
Epic contended before the Supreme Court that the 9th Circuit’s standards for delaying cases were “far too lenient.”
