Apple Faces Potential Sales Hit as Supreme Court Declines to Review App Store Case
In a significant development for Apple, the US Supreme Court has chosen not to review the lower court’s order, compelling Apple to adhere to a broad injunction that could reshape its relationship with mobile app developers and impact billions of dollars in app-related sales.
Apple, which estimated developers generated $1.1 trillion in the App Store in 2022, faces a substantial setback with the Supreme Court’s decision. The tech giant typically takes a 30% cut from in-app purchases of digital goods and services, and the ruling could impact its ability to control payment channels.
The court’s decision stems from a lawsuit initiated by Epic Games, the creator of “Fortnite,” challenging Apple’s app store practices. The injunction, part of the ongoing antitrust battle between Apple and Epic Games, prevents Apple from intervening when developers include features directing customers to alternative payment channels.
The court order targets Apple’s “anti-steering” language, preventing the company from enforcing measures that block developers from adding features designed to bypass Apple’s payment system. The injunction’s wide-ranging implications could affect millions of app developers, according to Apple’s filings.
Despite Apple’s argument that the order is overly broad and impacts developers not involved in the Epic Games litigation, the Supreme Court declined to hear the case. In a related decision, the court also rejected Epic Games’ appeal, asserting that lower courts had wrongly concluded that Apple’s app store practices did not violate federal antitrust law.
Apple’s app store terms have long been under scrutiny, with the company seeking to control in-app transactions and prevent developers from directing users to external payment channels. The court’s decision signals a potential shift in the dynamics of Apple’s app store and how developers interact with it, impacting the lucrative fees associated with in-app transactions.
