A few years ago, Epic Games took legal action against Apple regarding the management of its App Store. While Apple emerged mostly victorious in the lawsuit, it was mandated to implement certain changes.
Recently, Apple expressed dissatisfaction with the court’s ruling in this case and has initiated an appeal, seeking the appointment of a new judge. In its latest appeal, Apple asks the Ninth Circuit Court to overturn a recent order that prevents the company from charging developers commission fees on in-app purchases made outside of the App Store.
Apple contends that the ruling is overly punitive, arguing that it imposes restrictions on legal practices. The company believes the order oversteps its legal boundaries and misuses contempt powers beyond the original decision.
Additionally, Apple defends its 27% commission on in-app purchases, asserting that the district court’s prohibition against this commission has no basis in the initial ruling, and violates both California’s Unfair Competition Law and the U.S. Constitution. Apple emphasizes that the distinction between finding its commission too high and banning any commission entirely is significant.
To provide some context, a ruling in 2021 required Apple to allow developers to direct users to third-party payment options, which could incur lower commissions than Apple’s. However, Apple largely disregarded this ruling and continued to collect fees from developers using alternative payment systems.
This led U.S. District Judge Yvonne Gonzalez Rogers to find Apple in civil contempt and to issue a more stringent order banning the company from taking a percentage of purchases made via external links, while also establishing new rules for directing users to outside payment services. Unsurprisingly, this development has left Apple dissatisfied.
While it may be reasonable for Apple to take a commission for hosting apps on its platform, the 27% rate has come under scrutiny and appears excessive.