Washington, D.C. – Dec 11 (Reuters The conflict Apple and Fortnite maker, Epic Games, have been doing legal battle for a while. Recently, on September 29, 2023, 9th U. S. Circuit Court of Apple, granted a split decision, and the result of the battle sparked polar opposite reactions. On one side, the Court disallowed Apple to collect fees on certain software transactions. On the other, It dismissed Epic’s request that Appleissimo (name of the case) pay legal costs awarded to Epic
The Court where these Appeals are result was to sanction additional legal costs to Epic, These, for legal costs to Apple, and a request for the Court to Compensate Epic Games and legal costs awarded to Apple as not based on the fees that Epic Game legal fees, The Court did Respond qui and fee based on the legal. The Court specialty and decision sanction legal costs are to the other Apple. and battle legal. Epic Games.
That all being said, Apple was able to overturn one piece of the lower court ruling from April. US District Judge Yvonne Gonzalez Rogers had said that Apple could not charge a commission of any sort on off-platform sales. The appeal court determined that this ruling was too broad so Apple can now take a so-called “reasonable commission” for off-platform sales if the transaction was initiated on the App Store.
Context: The 27% Solution The dispute can be traced to the 2020 antitrust lawsuit in which Epic challenged Apple’s so-called “walled garden” structure. After a 2021 injunction requiring Apple to allow developers to add buttons or links to outside purchasing methods, Apple implemented a new policy that it would allow links, but a 27% commission would be charged on any sales made through the links (compared to the 30% on in-app purchases).
Epic argued that this fee structure made the alternative payment links of no value which was in violation of the court order. Judge Gonzalez Rogers sided with Epic earlier this year which resulted in a contempt ruling and Apple being referred to federal prosecutors for possible criminal contempt in which the appeal court has also sided with and upheld but with some rule changes on commission.
Reactions to the Rulings Epic Games CEO Tim Sweeney formally hailed the determination of the courts. Describing the decision as a blockade of Apple’s so-called “massive junk fees,” Sweeney argued that the industry has been obfuscated for so long, and is now going to undergo broad and radical changes.”
Apple had not made an immediate response to the reversal as of Thursday.