The U.S. Court of Appeals for the Ninth Circuit has unanimously rejected Apple’s requests for rehearing in its ongoing dispute with Epic Games, marking a major defeat for the tech giant.
Case Background
Epic Games launched its lawsuit against Apple in August 2020, alleging anticompetitive practices after the App Store removed Fortnite for circumventing in-app purchase rules. The district court ruled that Apple violated California’s Unfair Competition Law by blocking developers from directing users to external payment options. This marked Epic’s sole victory among ten claims.
Judge Yvonne Gonzalez Rogers later determined Apple breached her 2021 injunction and mandated that developers could link to alternative payments without restrictions. Apple contested this expansion, which originally applied only to Epic, and appealed to the Ninth Circuit.
Appeals Process
A three-judge panel largely affirmed the lower court’s decision. Apple then sought a panel rehearing and an en banc review by the full court. Key concerns centered on commission fees for external purchases: Apple argued the ruling muddied whether it could charge only direct support costs or a broader ecosystem-based fee.
Recent Ruling
The Ninth Circuit dismissed both petitions. All three panel judges denied the rehearing request. For the en banc petition, Judge M. Smith opposed it, while Judges S.R. Thomas and McShane supported it. However, the court order states: “The full court has been advised of the petition for rehearing en banc, and no judge of the court has requested a vote on it. […] The petition for panel rehearing and the petition for rehearing en banc are DENIED.”
Next Steps
Apple’s options narrow, potentially including another Supreme Court petition. Previously, the justices declined to review an earlier Ninth Circuit decision involving both parties.
