Apple and Epic Return to Court as Judges Question Prior Rulings

Apple returned to court this week to argue that a federal judge exceeded their authority when they held the company in contempt and barred it from collecting any commission on external in-app transactions, Bloomberg reports.

Apple told the appeals court that a U.S. District Judge went further than their 2021 order allowed when they banned Apple from taking any commission on purchases made outside apps. Apple said the order only required it to allow links to outside payments, not to stop collecting fees entirely.

Apple argued that if the judge disagreed with its approach, they should have clarified the order instead of punishing the company for contempt. It told the judges that the contempt ruling was "punitive" and that Apple is entitled to "some compensation" when developers use its platform and ecosystem.

Epic told the court that Apple knowingly violated the order instead of asking for clarification. The company said Apple only started claiming it should be paid for external purchases after it was caught violating the injunction.

The case arises from Epic's 2020 decision to add an external payment link to Fortnite, which led to its removal from the App Store. In response to the 2021 order allowing alternative payments, Apple created a new 27% fee on external transactions. Epic argued this violated the spirit of the order. A judge later agreed and held Apple in contempt, banning any commission on external payments. Apple is now asking the Ninth Circuit to overturn that contempt ruling.