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Apple Fights App Store Fee Suit at Supreme Court

AppleInsider •
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The Supreme Court will begin hearing cases again in October, where Apple hopes to convince the court to throw out its injunction violation against Epic. Apple and Epic have been battling for over six years over how Apple operates the App Store and charges commissions. The initial lawsuit ended in near total victory for Apple except for a provision about anti-steering practices.

The District Court found Apple in violation of an injunction after it allegedly failed to provide a competitive alternative to anti-steering. Apple's latest filings restate its arguments for the Supreme Court, suggesting the injunction violation was found in error and exceeded the District Court's limits. This filing focuses on one of two of Apple's arguments it initially made to the Supreme Court. It defines that the Ninth Circuit should not follow the "spirit of the law" in determining a violation versus the text of the law provided. Apple states that there was no mention of commissions in the original mandate to change its anti-steering practices. Apple did provide lower rates, at 12% and 27%, but argues that wasn't the purpose of the ruling, nor was it laid out in text.

The second argument involving the court's scope was not included in this filing, as it is no longer under consideration by the Supreme Court. When the Court agreed to review Apple's filing, it only said it would discuss the argument surrounding the "spirit of the law." Previously, Apple argued that the District Court exceeded its bounds by providing a universal injunction. It had used the CASA case as historic precedent for why the injunction violation should have only applied to Epic in this case. That argument is not being considered.

There have been zero commissions charged for external purchases since the injunction violation occurred. The ongoing battle in the Circuit Courts had Apple provide new commission rates, which Epic immediately rejected. Unless the Supreme Court renders all of this moot, Epic will likely continue to fight until it convinces the courts that zero percent is the only allowable rate for external purchases.