Apple And Epic Appeal Their Antitrust Feud With The US Supreme Court
The legal battle between Apple and Epic Games is moving up to the Supreme Court of the United States with Apple requesting a stay of a lower court injunction while it prepares to appeal a 2021 ruling regarding its "anti-steering" practices. The ruling mandated that Apple allow developers on the App Store to use non-Apple payment options.
The legal feud began in August 2020 when Epic Games sued Apple, accusing the tech giant of engaging in monopolistic practices on the App Store. Although Apple initially emerged victorious in the case, a significant blow came when the court declared that its policy of mandating developers to use its in-app payment system violated California's Unfair Competition Law.
This ruling meant that Apple would need to revise its policies to permit developers to use their preferred payment processors. For instance, Epic Games would have the freedom to offer Fortnite Vbucks directly to iOS gamers, bypassing Apple's system, which currently takes a 30% cut. Both Apple and Epic Games promptly appealed the ruling, putting it on hold until the appeals process concluded.
In April, the US 9th Circuit Court of Appeal upheld the 2021 ruling, and subsequent petitions for reconsideration were rejected. Apple has now filed notice with the Supreme Court, indicating its intent to bring the case to the highest court in the country.
Apple's filing argues against the imposition of a broad injunction, stating that it was an inappropriate remedy for a lawsuit initiated by a single plaintiff rather than a class action. The company also contends that the appeals panel's ruling on its App Store payment practices diverges from Supreme Court and Circuit precedent, potentially conflicting with federal laws. Apple highlights that class action lawsuits and universal injunctions are subjects of scrutiny among legal scholars and Supreme Court Justices.
"This case is important, not only for Apple and its business model, but also for thousands of developers and millions of iPhone users around the country," said Apple. "This Court should not allow a single-plaintiff action to dictate Apple’s policies nationwide while serious legal questions remain unresolved."
In response, Epic Games CEO Tim Sweeney took to Twitter, claiming that the current App Store policy "censors developers who want to tell consumers about better deals on digital goods out-of-app."
Apple is seeking Supreme Court appeal of the District Court and 9th Circuit court verdict that found its anti-steering policies illegal. Their policy censors developers who want to tell consumers about better deals on digital goods out-of-app.https://t.co/oRZBsXP5P1
— Tim Sweeney (@TimSweeneyEpic) July 4, 2023
