Tech giant Apple announced on Monday that it plans to request the US Supreme Court to review a judge’s order in an ongoing antitrust case filed by Fortnite creator Epic Games. The outcome of this case could potentially result in the alteration of Apple’s payment practices within its App Store. Apple made this declaration in a court filing, stating its intention to appeal a ruling handed down on Friday by the 9th US Circuit Court of Appeals in San Francisco. The appeals court upheld a majority of the order issued in 2021 by US District Judge Yvonne Gonzalez Rogers.
Judge Gonzalez Rogers’ order stipulated that Apple could not prevent developers from including links and buttons in their apps that direct users to alternative payment options outside of the App Store. This measure has the potential to diminish the sales commissions earned by Apple. Epic Games initially filed a lawsuit against Apple in 2020, challenging the fees imposed by the iPhone manufacturer for in-app payments. However, Epic Games sought an injunction to halt Apple’s practices rather than monetary damages. While Judge Rogers ruled against most of Epic Games’ claims, she did issue the order that Apple is currently contesting.
Both Apple and Epic Games filed appeals with the 9th Circuit, with the latter challenging the aspects of the judge’s ruling that favored Apple. Conversely, Apple sought to dispute the order pertaining to the App Store. In April, the 9th Circuit largely upheld Judge Rogers’ decision. Last Friday, the appeals court rejected petitions from both Apple and Epic Games, urging them to reconsider their April ruling. It is worth noting that Epic Games also has the option to request that the Supreme Court review its appeal.
Epic Games’ appeal to the 9th Circuit aimed to revive its antitrust claims against Apple in relation to the company’s restrictive app distribution and payment services. Apple’s legal team argued in Monday’s court filing that the appeals court went beyond its jurisdiction by issuing a nationwide injunction against Apple, alleging a violation of California state’s unfair competition law. Apple emphasized that its forthcoming petition to the Supreme Court will raise significant and wide-ranging questions regarding the authority of judges to issue broad injunctions.
The outcome of Apple’s appeal to the Supreme Court carries immense implications for the tech industry. If the court decides to hear the case, it will address fundamental questions regarding the power dynamics between tech giants and app developers. Additionally, it will scrutinize the control Apple exercises over its App Store and the fees charged for in-app purchases. The Supreme Court’s decision could potentially reshape the landscape of the app economy, affecting millions of users and developers.
Apple’s decision to request a review from the Supreme Court marks a significant development in its ongoing antitrust battle with Epic Games. The court’s decision to grant or deny the review will determine the future of Apple’s payment practices and the broader implications for the app industry as a whole.
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