Apple Scores Partial Win In Epic Games Fight As Appeals Court Scales Back Parts of Sanctions: Report

Shares of Apple (AAPL) fell 0.3% on Thursday after the company reportedly won a partial reversal of parts of a court order requiring the company to make changes to its App Store to promote greater competition in a long-running lawsuit brought by 'Fortnite' creator Epic Games.

Apple filed a notice of appeal in May after U.S. District Judge Yvonne Gonzalez Rogers ruled that Apple willfully violated a 2021 injunction that allowed developers to direct users to alternative, non-Apple payment options.

In her ruling, Gonzalez Rogers criticized Apple for creating new obstacles — including a 27% fee for out-of-store purchases — and for deploying so-called “scare screens” that discouraged consumers from using third-party payment systems.

Partial Reversal Terms

Reuters reported on Thursday that the San Francisco-based 9th U.S. Circuit Court of Appeals ruled that parts of the judge’s April order holding Apple in contempt for violating a prior decision were overbroad and must be modified. However, the appeals court upheld most of the contempt filing and the company lost its bid to overturn the injunction, the report added.

The court altered part of the lower court's ruling that barred Apple from charging any commission or fee tied to purchases that do not take place on the Apple platform and said the trial judge must now modify that part of her order.

The Long Legal Battle

The tech giant and Epic Games have been at odds since 2020, when the latter alleged that the iPhone maker’s practice of charging a 30% commission on in-app payments violated U.S. antitrust laws. While Apple mostly won the lawsuit, it was still required to allow developers to include links in their apps directing users to alternative purchasing methods.

Apple subsequently imposed a 27% commission on developers for purchases made outside the App Store and Epic Games returned to court, complaining that the 27% commission is in violation of the injunction, leading up to Gonzalez Rogers’ ruling and the subsequent appeal.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around AAPL stayed within the ‘neutral’ territory over the past 24 hours, while message volume remained at ‘normal’ levels.

AAPL stock has gained 11% this year and by about 13% over the past 12 months. 

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