The U.S. Supreme Court has agreed to hear an appeal by Apple Inc. concerning a contempt ruling in its ongoing antitrust dispute with Epic Games Inc., the maker of Fortnite. The case centers on whether Apple violated a 2021 court order regarding fees charged to developers in its App Store.
Supreme Court Review of Contempt Finding
In a brief order on Tuesday, the justices said they will review lower court decisions that found Apple willfully defied a 2021 ruling involving developer fees for its lucrative App Store. The court's decision adds another chapter to the antitrust battle between Apple and Epic, which began in 2020.
In the initial litigation, U.S. District Judge Yvonne Gonzalez Rogers determined that the App Store—which generates billions of dollars annually from commissions Apple takes from developers on digital sales—did not violate federal antitrust laws. However, the judge found that Apple violated California law and ordered the company to allow developers to direct consumers to cheaper payment options online. That decision was upheld by the 9th U.S. Circuit Court of Appeals and the U.S. Supreme Court.
Apple's New Fee and Epic's Challenge
In response to the ruling, Apple allowed developers to point users to the web for transactions but imposed a new 27% commission on revenue generated that way. Epic then accused Apple of flouting the 2021 ruling with the new fee. Following a series of hearings, Judge Rogers found Apple violated her earlier order and directed the company to stop charging commissions on purchases outside its software marketplace.
The 9th Circuit upheld Rogers' contempt finding but remanded the case for additional proceedings on whether Apple should be allowed to collect some commission from developers for use of its intellectual property. Apple subsequently appealed to the Supreme Court.
Scope of Injunction Not Considered
The Supreme Court's order on Tuesday indicated that it would not consider a second issue Apple raised: challenging the judge's decision to enter a so-called 'universal injunction' covering how the company dealt with all developers worldwide. Apple had argued that the injunction ran afoul of the justices' ruling in an unrelated case last year that narrowed the power of judges to issue such sweeping directives.
The case will be heard in the Supreme Court's next term, with a decision expected by mid-2027.
