Apple’s App Store Rules Stand Following Supreme Court Decision in Epic Games Case
Apple’s current rules for its App Store are set to remain in place as the company’s legal battle with Fortnite maker Epic Games moves forward. This means that developers will not be able to redirect customers to their own payment systems anytime soon. The dispute between the two tech giants involves Apple’s requirement to use its in-app payments system, its commission structure, and allegations of monopolistic practices. Lower courts have ruled in favor of Apple, finding no evidence of anti-competitive behavior.
Epic had requested that the federal appeals court’s most recent decision be upheld during proceedings at the Supreme Court, but this request has been denied.
If Epic’s request had been granted, Apple would have been required to allow App Store apps to provide links or buttons to non-Apple payment systems. This would have allowed developers to bypass Apple’s 15% to 30% commissions on purchases and subscriptions.
Although Apple was largely successful in defending against antitrust claims in lower courts, it lost specifically in relation to the rules around in-app payments. This is why the company continues to fight. When the case reached the U.S. Ninth Circuit Court of Appeals, the justices upheld a lower court ruling in favor of Epic under California’s Unfair Competition Law. This ruling would have restricted Apple’s ability to enforce “anti-steering” rules that prevent developers from directing users to alternative payment options besides Apple’s own system.
Naturally, Epic wanted this ruling to stand despite ongoing legal battles. However, the court has refused. Prior to this, Apple had obtained a motion that temporarily put the appeals court’s ruling on hold for 90 days while it appealed to the Supreme Court.
Bloomberg first reported on the Supreme Court’s decision, noting that Justice Elena Kagan chose not to implement the appeals court ruling. However, if the Supreme Court justices decline to hear the case altogether, then the ruling will stand according to the report.
