Apple is back in court to challenge a ruling that could reshape how developers make money on the App Store. The company has asked the Ninth U.S. Circuit Court of Appeals to overturn a contempt finding that barred it from collecting commissions on external in-app purchases. This fight, which began with Epic Games’ Fortnite back in 2020, has once again put Apple’s App Store rules under the microscope, and the outcome could change how you pay for apps.
At the core of this appeal is Apple’s claim that a federal judge went too far. U.S. District Judge Yvonne Gonzalez Rogers had found Apple in contempt earlier this year, saying the company violated her original injunction requiring it to allow developers to link to outside payment options. But when Apple introduced a 27% commission on purchases made outside the App Store, Epic argued that Apple was defying the spirit of that order. The judge agreed and banned Apple from collecting any commission on external transactions, even referring the case for possible criminal contempt review.
Apple says that the ruling overreached. In court this week, Apple’s attorney Gregory Garre argued that the company followed the 2021 order by allowing developers to include links to outside payments and that it simply sought fair compensation for using Apple’s platform and massive user base. According to Apple, if the judge disagreed with its interpretation, the proper step should have been clarification, not a contempt finding.
Epic Games, however, told the court that Apple acted knowingly and deliberately. Epic’s lawyer Gary Bornstein said Apple had chosen to “violate first and argue later” instead of seeking clarity. The gaming company maintains that Apple’s 27% fee effectively nullified the point of the injunction, which was to open up competition and give developers more freedom to use alternative payment systems.
Judges appeared skeptical of the lower court’s sweeping penalty. Circuit Judge Milan Smith noted that blocking Apple from charging any commission could cost billions, calling it “quite a penalty.” The tone of the hearing suggested the appeals panel may favor narrowing the lower court’s ruling, potentially allowing Apple to charge a smaller or more limited fee for external purchases.
Apple insists it is entitled to some form of compensation when developers use its infrastructure, APIs, and access to hundreds of millions of iOS users. The company argues that Epic and other developers continue to benefit from its ecosystem even when they process payments elsewhere, meaning a zero-fee structure would be unfair.
For consumers, the outcome could have major implications. If Apple wins, it could regain more control over App Store economics and standardize commissions on external links. If Epic prevails, developers could finally bypass Apple’s ecosystem without any fees, possibly leading to lower app prices and more competitive payment systems.
(via Bloomberg)
