Apple’s Contempt Appeal Denied in Epic Case

Apple Loses Appeal in Epic Games Antitrust Dispute

Apple has been unsuccessful in its attempt to overturn a significant district court ruling in the ongoing antitrust battle with Epic Games. The ruling, issued in April by Judge Yvonne Gonzalez Rogers, accused Apple of deliberately disregarding a 2021 order that permitted mobile app developers to include links to payment options outside of Apple’s ecosystem. As a result, Apple was prohibited from levying commissions on in-app purchases made through external payment links, among other restrictions. The Ninth Circuit Court of Appeals panel, in its recent opinion, largely upheld Gonzalez Rogers’ contempt findings and the limitations placed on Apple. However, the panel suggested that Apple should have the ability to charge reasonable fees for purchases made through external links.

Controversy Over Apple’s Handling of External Payment Methods

In her ruling, Gonzalez Rogers criticized Apple for implementing several measures to dissuade developers from using external payment methods. These measures included imposing a 27 percent fee on external payments, mandating that developers use plain text instead of buttons for links, and displaying a fullscreen warning to users when they clicked on external links. The appeals court concurred with the finding that Apple had obstructed compliance with the injunction by restricting developers from utilizing buttons, links, or calls to action without paying steep commissions to Apple. The court also noted that Apple had hindered customers’ ability to use external links by restricting the design of developers’ links.

Appeals Court Challenges Ban on All Commissions

While the appeals court upheld most of Gonzalez Rogers’ ruling, it disagreed with the ban on Apple collecting any fees on in-app purchases from developers. The court argued that the district court had overstepped by prohibiting Apple from charging any commissions, suggesting that a more reasonable commission structure should have been established. The panel recommended that Apple base its fees on the necessary costs associated with coordinating external links for purchases made through external sources.

Guidelines for Appropriate Commission and Fee Limitation

The opinion also provided guidance on how Apple can regulate developers’ use of buttons, links, and calls to action. While Apple cannot compel developers to make their options less prominent than Apple’s default, it can restrict developers from using more prominent fonts, larger sizes, larger quantities, or more prominent placements than Apple’s own buttons, links, or calls to action.