Apple Scrambles as Epic Games Case Heads to the Supreme Court

Apple is seeking to bring its Epic Games case before the U.S. Supreme Court. This would be its second request for appellate review, as it has already appealed the initial decision in late 2021.

The legal battle began in 2020 when Epic made changes to Fortnite to bypass Apple's payment system and avoid their 30% fee on in-game purchases. Apple responded by removing Fortnite from the App Store, leading Epic to file an antitrust lawsuit. While Apple's countersuit was dismissed, the U.S. District Court for the Northern District of California ruled in favor of Apple on nine out of ten counts in the original case. However, the court also mandated that Apple must allow third-party purchase options within apps.

After the April ruling by the U.S. Ninth Circuit Court of Appeals, which largely upheld the decision in the Epic Games v. Apple case, the iPhone maker is now seeking to petition the Supreme Court to reconsider the second-instance verdict. According to a court filing on July 3, obtained by Reuters, Apple argues that the appeals court's nationwide injunction against Apple, based on alleged violations of California's Unfair Competition Law, represents judicial overreach. For context, this ruling arose from the court's determination that Apple's anti-steering policies, which prohibit developers from directing or informing users about third-party iOS storefronts, were anticompetitive.

Apple is continuing to challenge the decision, but has requested a halt to the court's order, arguing that a nationwide injunction against its anti-steering practices is an excessive response to the alleged antitrust violations in California. Apple's attorneys also pointed out that the original lawsuit was filed by just one plaintiff, Epic, suggesting that the court's mandate to prohibit Apple from enforcing its anti-steering policies against all iOS app developers in the U.S. is an exaggerated reaction.

While Apple believes there are substantial legal questions that could lead to the Supreme Court agreeing to hear their case, it is uncertain whether the highest appellate authority in the U.S. will share the same view. The Supreme Court receives thousands of petitions each year but only decides to hear a small fraction of them, typically around 100-150 cases annually.

Fortnite will not be making a comeback on iOS for approximately five or more years, according to Epic CEO Tim Sweeney's statement in 2021. This hiatus is a result of the ongoing legal battle with Apple. However, a recent tweet from Sweeney, celebrating the New Year, hinted that the game might be available on the App Store again in 2023.

Source: Apple (PDF), Reuters