Epic Secures Procedural Win in App Store Fee Dispute
Apple Must Allow External Payments, For Now
The U.S. Court of Appeals for the Ninth Circuit has granted Epic Games' latest motion, dealing a significant blow to Apple's efforts to collect fees on purchases made outside its U.S. App Store. The decision means Apple must continue to allow developers to use external payments in apps without charging fees.
This ruling is a major victory for Epic Games, which has been locked in a high-stakes battle with Apple over App Store fees. The case has significant implications for the future of in-app transactions and the ability of developers to monetize their apps.
Background
In August 2020, Epic Games, the maker of Fortnite, filed a lawsuit against Apple, alleging that the company's 30% commission on in-app transactions was anticompetitive and stifled innovation. The case has been working its way through the courts ever since.
The Latest Ruling
The Ninth Circuit's ruling reverses an earlier order that had let Apple temporarily pause the required App Store changes while it sought Supreme Court review. Epic Games had derided Apple's move as 'another delay tactic' and asked the court to reconsider the decision.
What This Means for Developers
The final outcome of the case will determine whether Apple can collect fees on purchases made outside its U.S. App Store -- and if so, how much. In the meantime, developers can continue to use external payments in their apps without facing Apple's fees.
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Quotes
Apple has failed to show good cause to sustain our prior stay order. Apple has not demonstrated that any proceedings on remand will cause it irreparable harm if our decision is not stayed. -- U.S. Court of Appeals for the Ninth Circuit
Epic celebrated the court's decision in its favor, highlighting the court's reasoning in a post on X.