The U.S. Supreme Court on Wednesday refused to grant Apple a temporary pause on a 9th U.S. Circuit Court of Appeals ruling that held the company in contempt in its long-running legal fight with Epic Games over App Store policies.
Justice Elena Kagan denied Apple’s request to put the contempt finding on hold while the company aims to seek full review by the high court. The 9th Circuit decision in question stems from litigation over App Store fees and the scope of Apple’s obligations under earlier court orders.
The contempt ruling and the precise requirements it imposes are the most recent legal matters from the Epic Games case to reach the Supreme Court. Apple told the court the appeals court decision could alter the mechanics of how millions of app transactions are completed.
Epic Games obtained the contempt order last year as part of a broader lawsuit it filed in 2020. That suit sought to loosen Apple’s control over in-app transactions on devices running the company’s iOS operating system and to challenge Apple’s limits on how apps can be distributed to consumers.
While Apple prevailed on many claims in the underlying litigation, a 2021 injunction required the company to permit developers to include links within their apps that send users to payment methods outside of Apple’s own system. Apple implemented the required linking but placed additional constraints on external payments.
Among those constraints was a policy imposing a 27% commission on developers for purchases that occur on payment systems outside the App Store within seven days after a user taps an external link. For purchases processed inside the App Store, Apple charges a 30% commission.
Key points
- The Supreme Court declined to stay the 9th Circuit contempt ruling, denying Apple temporary relief while it prepares a full appeal.
- The contempt order arises from the Epic Games litigation that began in 2020 and challenges Apple’s control over app transactions and distribution on iOS.
- Apple implemented post-injunction policies that include allowing external payment links but applying a 27% external-transaction fee within seven days of link interaction, compared with a 30% fee for App Store purchases.
Risks and uncertainties
- Ongoing legal proceedings - The Supreme Court’s refusal to pause the contempt finding leaves unresolved legal obligations that could change app transaction processes; this affects the technology and digital commerce sectors.
- Operational and economic impact - The enforcement of the contempt ruling and any additional court-ordered measures may influence developer economics and platform fee structures within the app ecosystem.
- Scope of obligations - The exact contours of what Apple must do remain subject to further judicial review, creating uncertainty for app developers and consumers about payment routing and distribution options.
At this stage, the high court’s denial simply means Apple cannot delay enforcement of the contested appellate decision while it pursues full Supreme Court review. The broader dispute between Apple and Epic Games continues to play out in the courts, with implications for how app purchases are routed and how platform fees are applied.