Apple wins Supreme Court review in long-running Epic Games dispute

The US Supreme Court has agreed to hear Apple's appeal against a lower court ruling that found the company in contempt for failing to comply with an earlier injunction in its long-running legal battle with Fortnite developer Epic Games over App Store policies.The case, which is expected to be heard during the court's next term beginning in October, centres on whether Apple can be held in contempt for allegedly violating the intent of a judicial order rather than breaching its explicit wording.The dispute stems from Epic Games' 2020 antitrust lawsuit, which challenged Apple's control over app distribution and in-app payment systems on iPhones and iPads. Although Apple prevailed on most claims in the original case, a federal court in 2021 ordered the company to allow developers to direct users to alternative payment options outside the App Store.Apple subsequently permitted developers to include external payment links but introduced new conditions, including a 27% commission on certain purchases completed through third-party payment systems within seven days of users clicking those links. Epic argued that these measures effectively undermined the court's order by preserving Apple's control over app-related transactions.Also read: Apple fast-tracks security updates amid AI-driven cybersecurity concernsIn 2025, US District Judge Yvonne Gonzalez Rogers ruled that Apple had violated the injunction and held the company in civil contempt. The ruling was later upheld by the Ninth US Circuit Court of Appeals, although the appellate court allowed Apple to present fresh arguments regarding what commission, if any, it should be allowed to collect on purchases processed through external payment systems.Apple has consistently denied violating the injunction and said the lower courts had improperly relied on the broader purpose, or "spirit," of the order rather than its specific legal language.Following the Supreme Court's decision to hear the case, Apple said it welcomed the opportunity to clarify what it described as an important legal question. Epic Games, meanwhile, said it would continue challenging what it characterised as anticompetitive fees imposed on developers using third-party payment systems.The Supreme Court declined to consider another argument raised by Apple that the injunction should apply only to Epic Games rather than millions of developers using the App Store.The outcome of the case could have wider implications for the mobile app economy, as regulators and developers across several markets continue to scrutinise Apple's App Store business model and the fees it charges for digital transactions. The decision may also influence ongoing regulatory efforts aimed at increasing competition in app marketplaces and expanding payment choices for consumers and developers. (Inputs from Reuters)