Apple faced a major defeat in its ongoing legal struggle against Epic Games, as the Ninth Circuit Court of Appeals rejected both of Apple’s requests for rehearing. This ruling comes after an extensive legal conflict that initiated in August 2020 when Epic Games was taken off the App Store after it sought to circumvent Apple’s in-app purchase system.
The dispute emerged when Epic altered Fortnite’s payment structure to sidestep App Store fees, a decision later verified as deliberate. In a groundbreaking verdict, the court determined that Apple violated California’s Unfair Competition Law, particularly for preventing developers from directing users to alternative payment options. This ruling represented Epic’s sole win in the case, as the court dismissed nine additional claims proposed by the game developer.
In an earlier decision, Judge Yvonne Gonzalez Rogers mandated Apple to permit developers to link to other payment methods freely. Apple argued that this mandate improperly broadened the original ruling, which was directed solely at Epic, and subsequently appealed to the Ninth Circuit. The appeals court affirmed the lower court’s ruling, which led Apple to submit two petitions: one for a rehearing by the initial three-judge panel and another for an en banc rehearing involving the entire Ninth Circuit.
Apple’s main contention centered on the lack of clarity regarding what it could charge for purchases conducted outside the App Store, indicating two potential interpretations of the ruling. Nonetheless, the Ninth Circuit unanimously rejected both of Apple’s petitions. The court’s ruling leaves Apple with few alternatives, including the chance of appealing to the Supreme Court, a step it has previously taken without success.
As the legal situation continues to shift, the ramifications of this case could greatly influence the operational framework of the App Store and the wider relationship between app developers and platform owners.