In a significant legal maneuver, Apple Inc. has filed an appeal against a federal court’s contempt ruling that found the company in violation of a prior injunction concerning its App Store payment policies. This development marks the latest chapter in the ongoing legal battle between Apple and Epic Games, the creator of the popular game Fortnite.
Background of the Legal Dispute
The conflict traces back to August 2020, when Epic Games introduced a direct payment system within Fortnite, circumventing Apple’s in-app purchase mechanism and its standard 30% commission. In response, Apple removed Fortnite from the App Store, prompting Epic to file a lawsuit alleging anti-competitive practices.
In September 2021, U.S. District Judge Yvonne Gonzalez Rogers issued an injunction requiring Apple to allow developers to include links to external payment options within their apps. This ruling aimed to provide consumers with alternative purchasing methods and foster competition within the app marketplace.
Apple’s Compliance Measures and Subsequent Contempt Ruling
In an attempt to comply with the injunction, Apple implemented a new policy permitting developers to include external payment links. However, the company imposed a 27% commission on transactions completed through these links, slightly less than its standard rate. Additionally, Apple restricted the placement and appearance of these external links within apps.
Judge Gonzalez Rogers found these measures insufficient and in violation of the original injunction. In April 2025, she held Apple in contempt of court, stating that the company’s actions undermined the spirit of the injunction by limiting competition. The judge ordered Apple to cease imposing any commissions on purchases made outside its in-app payment system and to refrain from restricting how developers present alternative payment options within their apps.
Apple’s Appeal and Arguments
Apple has now appealed this contempt ruling, arguing that the court’s order unlawfully forces the company to relinquish control over core aspects of its business operations. In its emergency motion filed with the Ninth Circuit Court of Appeals, Apple contends that the district court’s new injunction imposes punitive measures that could cost the company substantial sums annually.
The company asserts that the court’s prohibition against any commission on sales facilitated by Apple’s platform has no basis in the original injunction and amounts to a taking in violation of the U.S. Constitution. Apple also challenges the additional restrictions on how developers can present external payment options, claiming that these provisions are inconsistent with California’s Unfair Competition Law.
Implications for Developers and the App Store Ecosystem
The outcome of this appeal carries significant implications for app developers and the broader App Store ecosystem. If the contempt ruling is upheld, developers would have greater freedom to direct users to external payment methods without incurring commissions to Apple. This could lead to increased competition and potentially lower prices for consumers.
Conversely, if Apple’s appeal is successful, the company may retain more control over its App Store policies, including the ability to impose commissions on external transactions and regulate how developers present alternative payment options.
Broader Context and Industry Reactions
This legal battle is part of a broader scrutiny of Apple’s App Store practices by regulators and industry stakeholders worldwide. In the European Union, Apple has faced antitrust investigations and has made changes to its App Store rules to comply with regulatory directives. Similarly, in Brazil, the antitrust regulator’s technical body recommended ruling against Apple for anti-competitive practices within its iOS ecosystem.
Industry reactions to Apple’s appeal have been mixed. Some developers and competitors view the company’s actions as an attempt to maintain its dominant position and revenue streams, while others argue that Apple’s policies are necessary to ensure user security and a consistent app experience.
Conclusion
As Apple continues to challenge the contempt ruling, the tech industry watches closely. The resolution of this case could set a precedent for how platform operators manage their ecosystems and interact with developers, potentially reshaping the landscape of digital marketplaces.
