Apple App Store Injunction Largely Upheld as Appeals Court Rules on Epic Games Case

Apple secured a partial victory in its long-running legal battle with Epic Games after a U.S. appeals court on Thursday modified parts of a lower court order that required changes to the iPhone maker’s highly profitable App Store. However, the court largely upheld a sweeping injunction that continues to reshape how Apple can operate its digital marketplace and charge developers.

The San Francisco-based 9th U.S. Circuit Court of Appeals ruled that certain aspects of an April contempt order against Apple were overly broad and must be revised. That order had found Apple in violation of a previous injunction issued in 2021, which aimed to promote greater competition by allowing app developers to direct users to alternative payment options outside the App Store. While the appeals court agreed that parts of the ruling needed adjustment, it left intact most of the contempt finding and reaffirmed the core injunction against Apple.

A key modification involved the lower court’s blanket ban on Apple charging any commission on purchases made outside its platform. The appeals court said Apple should be allowed to seek a reasonable commission on those transactions, provided it operates within defined limits. This decision gives Apple some flexibility while still restricting practices the court viewed as anti-competitive.

Epic Games CEO Tim Sweeney welcomed the ruling, arguing it prevents Apple from imposing what he described as excessive fees on developers. He said the decision would lead to meaningful changes benefiting both developers and consumers after years of resistance from Apple.

The lawsuit, filed by Epic Games in 2020, challenged Apple’s control over app distribution and in-app payments on iOS. Although Apple prevailed on most claims in the original case, the 2021 injunction forced it to permit external payment links. Apple later imposed a 27% commission on off-app purchases made within seven days of clicking those links, compared with its standard 30% App Store fee. Epic argued this violated the injunction.

In April, U.S. District Judge Yvonne Gonzalez Rogers agreed with Epic, ruled Apple in contempt, and referred the matter to federal prosecutors. Apple appealed, arguing the new order exceeded the original injunction. The appeals court rejected Apple’s attempt to narrow the injunction’s scope beyond Epic, signaling continued scrutiny of App Store practices.