Apple Appeals Contempt Ruling in Ongoing App Store Legal Battle with Epic Games

Legal Battle Resumes Over App Store Payment Rules

Apple has returned to federal appeals court seeking to overturn a contempt ruling that found the company deliberately ignored a court order regarding App Store payment alternatives, according to court proceedings reported on Tuesday. The ongoing legal confrontation with Epic Games centers on whether Apple violated an injunction requiring it to permit alternative payment methods outside its ecosystem.

Legal Battle Resumes Over App Store Payment Rules
Apple’s Contention: Overreach and Misinterpretation
Epic’s Counterargument: Calculated Defiance
Judicial Response and Ongoing Proceedings
Background of the App Store Dispute

Apple’s Contention: Overreach and Misinterpretation

Sources indicate Apple’s legal team argued vigorously that the lower court exceeded its authority by banning all commissions on external purchases. Apple’s attorney Gregory Garre reportedly characterized the order as “punitive” and maintained that the company never intended to violate the original injunction. “If the district court thought our interpretation was wrong, the appropriate remedy was clarification—not a contempt finding,” Garre told the appeals court according to deposition records.

Analysts suggest Apple’s position hinges on the argument that it should retain the ability to charge some commission for purchases made through its platform, even when using alternative payment systems. The company reportedly contends that developers like Epic shouldn’t receive what it characterizes as a “free ride” while benefiting from Apple’s hardware, software, and established user base.

Epic’s Counterargument: Calculated Defiance

Epic Games presented a starkly different narrative, with its lawyer Gary Bornstein reportedly telling the court that Apple took a “calculated risk” in violating the original order. “Apple had every opportunity to seek clarification if it thought the injunction was unclear. It didn’t do that,” Bornstein argued according to court transcripts. “Instead, it went ahead with a plan that directly contradicted the order. They don’t get a do-over now because they lost that bet.”

The report states that Epic maintains Apple deliberately implemented an overly complicated solution that effectively circumvented the court’s intention to open payment options for developers.

Judicial Response and Ongoing Proceedings

Court observers noted that the appellate panel appeared somewhat sympathetic to certain aspects of Apple’s position, with one justice reportedly pointing out that nothing in the original injunction explicitly prohibited the company from charging commissions. However, the judges also reportedly suggested Apple likely understood the implications of its implementation strategy.

The three-judge panel didn’t issue an immediate ruling, with sources indicating a decision is expected within coming months, though likely not extending to 2025. This latest hearing represents another chapter in the five-year legal conflict between the technology giant and the game developer.

Background of the App Store Dispute

The legal confrontation began in 2020 when Epic willfully bypassed Apple’s App Store payment system by implementing an external payment option in its popular Fortnite game, triggering the removal of the app from Apple’s platform and initiating the ongoing litigation. The case has evolved through multiple rulings and appeals, with the current contempt finding representing one of the most recent developments in the complex legal saga.

Industry analysts suggest the outcome could have significant implications for Apple’s App Store business model and the broader relationship between platform operators and developers. The ruling may also establish important precedents regarding how court injunctions are interpreted and enforced in the technology sector.