Apple secures partial win in Epic case, can charge fees on external payment links

HIGHLIGHTS

Apple has scored a partial victory in its long-running legal battle with Fortnite maker Epic Games.

One major change by the appeals court allows Apple to charge a commission on purchases made outside the App Store.

Apple’s appeal arguing that the injunction should not apply beyond Epic Games itself was rejected.

Apple secures partial win in Epic case, can charge fees on external payment links

Apple has scored a partial victory in its long-running legal battle with Fortnite maker Epic Games, after a US appeals court modified parts of a lower court order requiring changes to its App Store. Reuters report that the San Francisco-based 9th US Circuit Court of Appeals has ruled that some parts of the April order holding Apple in contempt for violating an earlier decision were too broad and needed adjustment.

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One major change by the appeals court allows Apple to charge a commission on purchases made outside the App Store, reversing a part of the lower court ruling that had barred any fees on such transactions. This gives Apple the chance to earn a reasonable commission on sales that occur through external payment links. Epic Games CEO Tim Sweeney heralded the ruling, saying it protects developers from “giant junk fees” imposed by Apple. 

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The legal fight began in 2020 when Epic filed a lawsuit aiming to loosen Apple’s control over in-app purchases and app distribution on iOS devices. Although Epic largely lost the case, a 2021 court injunction required Apple to allow developers to add links in their apps directing users to other payment options.

Apple partially complied but introduced new rules, including a 27 per cent commission on purchases made through external links within seven days of a user clicking. Apple continues to charge a 30 per cent commission for purchases made directly in the App Store. Epic argued that the 27 per cent fee violated the 2021 injunction.

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In April, US District Judge Yvonne Gonzalez Rogers ruled that Apple had defied her earlier injunction and issued a ban on commissions tied to off-App Store purchases. 

The appeals court clarified that while Apple can charge commissions on linked-out purchases, there must be some limits. Apple’s appeal arguing that the injunction should not apply beyond Epic Games itself was rejected, leaving the broader restrictions intact.

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Ayushi Jain

Ayushi Jain

Tech news writer by day, BGMI player by night. Combining my passion for tech and gaming to bring you the latest in both worlds. View Full Profile

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