Supreme Court Declines to Hear Apple-Epic Games Legal Dispute

The US Supreme Court has chosen not to review a legal dispute involving Apple and 'Fortnite' creator Epic Games, allowing a prior ruling that required Apple to modify its App Store policies to stand.

The Court offered no comment on its decision to dismiss both Apple's challenge and Epic's appeal, which contested the App Store's exclusivity and payment system as anticompetitive under federal antitrust laws.

Following the Court's decision, Apple shares dropped by more than 2%.

This legal contention began when Epic Games filed a lawsuit against Apple in 2020, claiming Apple's practices were monopolistic due to the enforced use of its App Store and payment system, which includes up to a 30% fee on in-app purchases.

In 2021, US District Judge Yvonne Gonzalez Rogers sided with Apple, dismissing Epic's antitrust allegations. However, she identified a breach of California's competition law regarding developer restrictions, resulting in an injunction against Apple. Yet, this injunction remains on hold pending Apple's appeal.

The 9th US Circuit Court of Appeals confirmed Judge Rogers' findings in 2023, noting Epic's failure to show better alternatives to Apple's storefront. The Supreme Court has rejected Epic's request to enforce the injunction immediately.

Epic warned that the 9th Circuit's ruling allows anticompetitive harm and shields monopolistic tech platforms from scrutiny. Apple retorted that Epic's failure to pursue a class-action suit limits the scope of relief federal courts should provide, arguing that the injunction exceeded this scope.