Apple Appeals Court Ruling Over App Store Payment Policies

Apple has filed an appeal with the U.S. Ninth Circuit Court of Appeals in the Epic Games antitrust case, challenging restrictions on App Store payment policies and facing potential criminal investigation, The Verge is reporting.

The original injunction, stemming from Epic Games’ antitrust lawsuit, required Apple to allow developers to direct users to alternative payment methods outside the App Store.

Last month, U.S. District Judge Yvonne Gonzalez Rogers ruled that Apple had willfully defied this order by imposing a 27% commission on external purchases and implementing deterrent measures, such as warning screens, to discourage users from utilizing third-party payment options. The judge criticized Apple for deliberate delays, referring the company to federal prosecutors for potential criminal contempt charges.

Apple’s appeal seeks to overturn the ruling that prohibits the company from charging developers fees for purchases made outside the App Store. The company argues that its policies are designed to protect user privacy and security.

The legal battle between Apple and Epic Games began in 2020 when Epic introduced an unauthorized in-app payment system in Fortnite, leading to the game’s removal from the App Store. Epic sued Apple, alleging monopolistic practices. In 2021, Judge Gonzalez Rogers ruled that while Apple was not a monopolist, its anti-steering provisions violated California’s Unfair Competition Law.

Both companies appealed the decision, and in April 2023, the Ninth Circuit largely upheld the lower court’s ruling.

The recent contempt ruling has sparked further legal challenges for Apple. App developer Pure Sweat Basketball filed a class-action lawsuit, alleging that Apple’s actions caused developers to pay inflated commissions, leading to damages estimated in the hundreds of millions or even billions of dollars.

The lawsuit represents up to 100,000 developers and demands Apple return these funds.