Apple secured a partial victory on Thursday when a U.S. appeals court agreed to reverse elements of a lower-court order requiring changes to the company’s App Store practices, but the court largely upheld contempt sanctions and left a sweeping injunction intact.(Reuters)
In a decision issued by the San Francisco-based 9th U.S. Circuit Court of Appeals, the three-judge panel held that portions of an April order finding Apple in contempt for violating a prior injunction were overly broad and required modification. However, the court affirmed the bulk of the contempt ruling as well as the underlying injunction issued in Apple’s long-running dispute with Epic Games, the maker of Fortnite.
The panel adjusted a key part of the lower court’s order, which had prohibited Apple from charging any fee or commission connected to consumer purchases made outside the Apple platform. Under the revised ruling, Apple may seek to impose a “reasonable” commission on those external transactions, though the court signaled that limitations are necessary to ensure compliance with the original injunction.
Epic Games CEO Tim Sweeney welcomed the appellate decision, arguing that it curtails Apple’s ability to levy what he called “giant junk fees” on developers. “After years of Apple obstruction, we’re finally going to see large-scale change happening,” Sweeney said, asserting that the ruling will benefit both developers and consumers.
Apple has previously denied violating court orders and defended its fee structure. The company did not immediately respond to a request for comment following the decision.
The dispute dates back to 2020, when Epic sued Apple seeking to loosen the company’s control over in-app transactions and its restrictions on software distribution within the iOS ecosystem. While Apple prevailed on most of Epic’s antitrust claims at trial, a 2021 injunction required Apple to permit developers to include links directing users to alternative purchasing methods outside the App Store.
Apple subsequently removed some restrictions but introduced new rules — including a 27% commission on purchases made outside the App Store within seven days of a user clicking an external link. That fee is only slightly below the 30% commission Apple charges for in-App Store purchases. Epic argued the new policy violated the 2021 injunction and sought contempt sanctions.
U.S. District Judge Yvonne Gonzalez Rogers agreed in April, finding that Apple had defied her order and imposing a new ban on commissions tied to off-app transactions. She also referred Apple to federal prosecutors for potential criminal contempt.
In its appeal, Apple contended that the district court had improperly expanded the scope of the original injunction. The 9th Circuit rejected that argument, confirming that the injunction was not limited solely to Epic’s own apps but applied more broadly.
The case now returns to the district court for recalibration of the contempt sanctions in accordance with the appellate ruling, while the core injunction governing Apple’s App Store practices remains in force.