Apple secures partial appeals court win in Epic Games App Store case to retain reasonable commission

• The 9th US Circuit Court said parts of a contempt order against Apple were overly broad and must be modified.
• The appeals court upheld most of the ruling and the existing injunction against Apple.
• Epic Games CEO Tim Sweeney said the decision will benefit developers and consumers.
• The legal battle dates back to Epic’s 2020 lawsuit challenging Apple’s control over iOS payments.

Apple won a partial victory at a US appeals court to reverse some requirements requiring it to change how its App Store operates.

As reported by Reuters, the Ninth US Circuit Court of Appeals said parts of a contempt order against Apple in Epic Games’ lawsuit were too broad and should be changed.

However, the court upheld most of the ruling and the existing injunction against the company.

A three-judge appeals panel also modified a lower court ruling, allowing Apple to seek a reasonable commission on purchases made outside its platform instead of banning such fees entirely.

Epic Games CEO Tim Sweeney welcomed the ruling, saying it prevents Apple from charging excessive fees and will benefit both developers and consumers.

"After years of Apple obstruction, we're finally going to see large-scale change happening," said Sweeney.

Legal battleground 

Epic Games sued Apple in 2020 to challenge its control over iOS app transactions and distribution. While Apple largely won the case, a 2021 injunction required it to let developers link to alternative payment options.

Apple eased some App Store rules but introduced new restrictions, including a 27% fee on purchases made outside the App Store from linkouts, compared with its 30% in-store commission. Epic Games argued this violated a prior injunction and asked the court to hold Apple in contempt, which Apple denied.

A US judge ruled in April that Apple violated a 2021 injunction by imposing fees on off-app purchases, banning such commissions and referring Apple for possible criminal contempt. 

On appeal, the court said Apple may charge commissions on linked purchases but with limits, rejecting Apple’s claim that the injunction should only apply to Epic Games.

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