Supreme Court Says Apple Can Keep Its Store Payment Rules, For Now

By
Diccon Hyatt
Diccon Hyatt
Full Bio
Diccon Hyatt is an experienced financial and economics reporter who has covered the pandemic-era economy in hundreds of stories over the past two years. He's written hundreds of stories breaking down complex financial topics in plainspoken language, emphasizing the impact that economic currents would have on individuals' finances and the market. He's also worked at The Balance, U.S. 1, Community News Service and the Middletown Transcript.
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Published August 09, 2023
11-year-old Ansel, the photographer’s son, plays Fortnite for a special in-game showing of "We The People" at Fortnite’s Party Royale on July 04, 2020 in South Pasadena, California.

Neilson Barnard / Getty Images

Key Takeaways

  • The Supreme Court has dealt a setback to video game publisher Epic in its battle against Apple over how the iPhone giant treats developers who sell programs on the App store.
  • Justice Elena Kagan denied a request from Epic to make Apple implement changes that a judge ordered in 2021, but which another court ordered put on hold while the legal battle proceeds.
  • The order would have forced Apple to allow third-party developers to steer users away from Apple's platform for in-app purchases.

Apple (AAPL) can put off making changes to its online software store while its legal battle against video game maker Epic proceeds, the Supreme Court ordered Wednesday. 

Justice Elena Kagan denied a request by Epic that would block Apple’s implementation of changes to its software store. The block had been mandated by a judge overseeing the lawsuit that Epic filed in 2020.

Kagan’s order is a setback for Epic, the maker of the popular video game Fortnite, in its legal battle to force Apple to change the way it handles payments to developers that make software for its devices. Epic sued Apple on antitrust grounds, alleging the iPhone maker has a monopoly on software distribution since it only allowed programs for its devices to be purchased through its own Apple Store, where it takes 30% of payments made by users to developers.

In 2021, a district court sided mostly with Apple, denying most of the changes Epic had asked for. However, the Northern California district court judge did give Epic a partial victory, ordering Apple to allow developers to inform users of alternative payment options outside Apple’s control if they initiated in-app purchases.

That was an important concession to Epic because Fortnite operates on a “freemium” business model: users don’t have to pay to purchase the game, instead, use real money to buy items within the game (such as hats for their characters).

The Supreme Court has yet to decide whether it will hear Apple’s request to throw out the rules imposed by the district court.

Whatever the outcome of the lawsuit, it remains game over for Fortnite fans who played on Apple devices—the game was removed from the app store in 2020.

Article Sources
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  1. Supreme Court. "Proceedings and Orders."

  2. Ninth Court of Appeals. "Epic Games Inc. vs. Apple. Order."

  3. United States District Court of Northern California. "Epic Games Inc. vs. Apple. Complaint."

  4. United States District Court of California. "Epic vs. Apple. Permanent Injunction."

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