Key facts
- The U.S. Supreme Court will hear Apple's appeal of a contempt finding in its legal dispute with Epic Games.
- The contempt ruling concerns Apple's violation of a court order mandating changes to its App Store.
- Epic Games accused Apple of violating an order requiring it to allow developers to link to external payment methods.
- Apple implemented links to external payments but charged a 27% commission, which a lower court found to be prohibitively high.
- Apple argues the Ninth Circuit's contempt finding conflicts with standards in other circuits.
- The Supreme Court will decide if a contempt finding can be based on an injunction's 'spirit' when the conduct is not explicitly prohibited.
The U.S. Supreme Court has agreed to hear Apple's appeal of a contempt finding related to its App Store policies in the ongoing legal battle with Epic Games. The case stems from a judicial order requiring Apple to allow developers to include links to alternative payment methods for app purchases, thereby circumventing Apple's standard 30% commission.
Apple implemented these links but imposed a 27% commission for such transactions. The Ninth Circuit Court of Appeals upheld a contempt finding against Apple, stating that the company violated the spirit of the order by setting a fee so high that it deterred developers from using the external payment options. Apple argues that this ruling conflicts with contempt standards in other circuits, which require a clear violation of explicit language in a judicial order.
The tech giant is petitioning the Supreme Court to reverse the contempt finding, arguing that it is erroneous and could negatively influence ongoing litigation regarding acceptable commission rates. Apple contends that if the contempt finding is reversed, it might avoid modifying its fees or proposing an acceptable rate on its own. Epic Games, however, is preparing to defend the lower courts' rulings, asserting that Apple's fees are illegal and anticompetitive.
The stakes are considered enormous for Apple, as the outcome could impact millions of app purchases and influence regulatory decisions worldwide. The UK's Competition and Markets Authority has also indicated it is preparing to challenge similar app store restrictions imposed by Apple and Google.