In a significant development concerning a prolonged legal battle between Apple and Epic Games, the Ninth Circuit Court of Appeals has ruled against Apple’s contempt appeal in an antitrust dispute related to the company’s App Store practices. Following this decision, Epic Games CEO Tim Sweeney expressed that the ruling “completely shuts down” Apple’s App Store policies that impose excessive charges on developers.
The appellate court largely upheld an earlier ruling by Judge Yvonne Gonzalez Rogers, which concluded that Apple failed to comply with her 2021 order that permitted app developers to direct users to external payment options. Sweeney emphasized that this ruling is a win for all developers, highlighting the broader implications of the court’s decision.
One of the most notable aspects of the court’s ruling is its directive for Judge Gonzalez Rogers to explore potential methods for Apple to charge developers reasonable fees for transactions made through external payment links. This contrasts sharply with Apple’s previous practices, which had involved heavy fees and convoluted requirements for external payment systems. The court suggested that Apple could charge costs that are genuinely necessary for facilitating these external links, but it noted that fees should not be arbitrary or excessively high.
Sweeney commented on the ruling, noting that while there may be legitimate costs associated with app review processes, the notion that Apple can apply arbitrary percentages to developer revenue is untenable. “If you want to have an app go through review with custom linkouts, maybe there’s several hundred dollars of fees associated with that every time you submit an app,” he stated, adding that this model ensures Apple is compensated for its services without imposing excessive fees.
Since the April ruling, Fortnite has made its return to the US App Store nearly five years after being removed due to Epic’s attempt to implement its own in-app payment system. Additionally, there are ongoing efforts globally to challenge Apple’s App Store monopoly, with regulations like the Digital Markets Act in Europe paving the way for alternate app stores.
Sweeney expressed concern over Apple’s strategy of maintaining high fees across different territories until compelled by law or regulation to adjust its practices. He urged the company to consider harmonizing its policies globally to avoid further legal challenges. “I can’t imagine any justification for a percentage of developer revenue being assessed here,” Sweeney stated.
Moreover, on the same day as the ruling, Fortnite made its return to Google Play in the US, following a similar dispute between Epic and Google, which has now been settled, pending court approval. Sweeney expressed optimism regarding the new leadership at Google, stating, “I’ve been very impressed with the new generation of the Android leadership. They turned over a new leaf here.”
Overall, Sweeney sees the Ninth Circuit’s ruling as a catalyst for regulatory reform worldwide, suggesting that nations should not allow companies like Apple to impose fees that are deemed illegal in the United States. He concluded with a hopeful outlook, anticipating that the ruling may spur a reassessment of Apple’s practices globally.
