The U.S. Supreme Court has rejected Epic Games' request to enforce a ruling against Apple's App Store payment rules, allowing the current structure to remain in place. The decision marks a significant development in the ongoing legal battle between the two tech giants, with potential implications for developers and the broader industry.
The US Supreme Court has denied a request from Epic Games Inc. to enforce a ruling that would have required Apple Inc. to change its App Store payment rules. The decision allows Apple to keep its current payment structure in place while the legal battle continues, a move that could have significant implications for both companies and the broader tech industry.
Justice Elena Kagan, who is responsible for handling emergency matters from the San Francisco-based 9th Circuit, rejected Epic's request without explanation. The 9th US Circuit Court of Appeals had previously ruled that Apple violated California's Unfair Competition Law by limiting developers' ability to communicate about alternative payment systems, such as purchases through the Epic Games Store. However, Kagan's rejection means that Apple will receive a temporary reprieve from this ruling.
The dispute centers on Apple's commission of up to 30% for digital goods and services sold through its App Store. The 9th Circuit ruling could have allowed developers to circumvent these commissions by including links to process payments on the web instead of within the Apple system. This could have affected billions of dollars in revenue for Apple.
Epic argued that the 9th Circuit used the wrong legal standard in putting its ruling on hold, stating that the result would "injure not only Epic but innumerable consumers and other app developers for a significant period of time." Apple countered that Epic was not being affected by the disputed policy and had not established that the stay was causing it serious harm.
Though Apple largely won its antitrust case in the lower courts, the rules around in-app payments were the one area where it lost, leading to the ongoing fight. After the case reached the U.S. Ninth Circuit Court of Appeals, the justices upheld a lower court's judgment in favor of Epic under California's Unfair Competition Law. This decision would have impacted Apple's ability to set "anti-steering" rules for its App Store, restricting developers from pointing to other payment options besides Apple's own system.
The Supreme Court's rejection of Epic's request is a significant development in a high-profile antitrust case over iOS App Store in-app purchase fees. The Supreme Court's refusal to hear the case could mean that the 9th Circuit's ruling will eventually take effect. Both Apple and Epic declined to comment immediately on the decision, leaving many to speculate on the future implications of this ongoing legal battle.