Malta: Supreme Showdown: Court Rejects Epic Games' Plea To Alter Apple's iOS Rules

This is the eighth update in relation to the ongoing legal dispute concerning Epic and Apple.

Our First Article, Second Article, Third Article, Fourth Article, Fifth Article, Sixth Article and Seventh Article are accessible via the direct links provided.

The three-year-long legal battle between Apple and Epic Games has recently seen new developments, prompted by a decision from the US 9th Circuit Court of Appeals. This decision found the previously imposed injunctions on Apple's 'anticompetitive' business model to be invalid, resulting in the overturning of these injunctions. As a result, last week, Epic Games made a request to the Supreme Court for the reinstatement of the original injunction. This request was rejected by Justice Elena Kagan without providing a reason.

Epic Games and Apple have been locked in an ongoing legal battle since August 2020. The case is centered on Apple's 30% cut from in-app purchases on iOS, with Epic Games arguing that these practices are monopolistic and anti-competitive. Apple's practices have had a large effect on Epic Games, specifically with their popular game Fortnite. The 30% cut motivated Epic Games to create an alternative form of payment, offering consumers a direct link to purchase. By moving purchases out of the Apple App Store Epic Games avoided the so-called 'apple tax'. However, Epic Games' decision had consequences resulting in them being removed from the Apple App Store all together. Apple's response caused Epic Games to file an antitrust lawsuit.

On 10 September 2021 the 19^th Circuit Court of Appeal found Apple in violation of antitrust laws and US District Judge Yvonne Gonzalez Rogers issued an injunction requiring Apple to allow developers to use alternative payment systems;

"Apple will be required to change its business model to comply with the injunction before judicial review has been completed."

However, on 8 December 2021, after Apple took the case to the Supreme Courts, the 9^th Circuit altered its decision, stating that Rogers should not have implemented the injunctions prior to the Supreme Court's decision. As a result, the 9^th Circuit suspended the injunctions, meaning that Apple was not obliged to make any changes to its iOS system.

Epic Games subsequently requested to the Supreme Court that the original ruling from the US 9^th Circuit Court be re-enforced, and that the injunction be upheld. However, this request was unsuccessful, with Justice Elena Kagan denying it without an explanation.

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