Apple Escalates App Store Fee Battle, Seeks Supreme Court Intervention Against Epic Ruling

Apple Escalates App Store Fee Battle, Seeks Supreme Court Intervention Against Epic Ruling

Apple is escalating its legal confrontation with Epic Games by preparing to petition the U.S. Supreme Court. In a recent filing, the company announced its intention to seek review of a contempt ruling related to App Store fees. Concurrently, Apple requested a pause on an appeals court decision that restricts its ability to impose charges on external payments. On April 6, the court granted this motion, prompting an immediate challenge from Epic Games.

The conflict originated in 2020 when Epic Games, creator of Fortnite, integrated external payment options into its app to circumvent Apple’s App Store fees. In 2021, a court ruled that Apple was not a monopoly but mandated that developers be permitted to link to external payment systems. Apple appealed this aspect to the Supreme Court, which declined to hear the case, leaving the Ninth Circuit Court’s ruling intact.

Following the ruling, Apple allowed external payments but imposed a 27% commission on purchases made through alternative systems—a marginal reduction from its standard 30% fee. In contrast, Google recently settled a similar dispute with Epic Games, lowering its Play Store commissions to 20%.

Epic Games contested Apple’s fee, arguing it violated the court order and failed to provide savings due to inherent payment processing costs. The U.S. District Court for the Northern District of California sided with Epic, holding Apple in contempt. This decision was upheld by the U.S. Court of Appeals for the Ninth Circuit in December 2025. The appeals court stated that the 27% fee undermined the purpose of allowing external payments but did not propose an alternative rate, remanding the matter to a lower court for resolution.

Apple sought a rehearing on this decision, but its request was denied in March 2026. With no further recourse within the Ninth Circuit, the company now aims to bring the case to the Supreme Court. If accepted, Apple intends to challenge the legal standards used for the contempt finding and argue against judicial limitations on its service fees.

Apple maintains that the 27% commission reflects the value of its App Store ecosystem, covering services such as hosting, discovery, and developer tools, rather than mere payment processing. However, the Supreme Court previously refused to hear Apple’s appeal on a different facet of the case, suggesting potential rejection of this new petition.

The outcome of this protracted battle could significantly impact Apple’s App Store revenue, especially as consumer behavior shifts toward AI chatbots and agents. Natalie Munoz, a spokesperson for Epic Games, criticized Apple’s motion as a delay tactic to avoid permanent restrictions on what she termed “junk fees” for third-party payments. She noted that courts have repeatedly found such practices illegal and highlighted that only a few developers, including Spotify, Kindle, and Patreon, have utilized external payment options due to Apple’s tactics.

Epic Games remains committed to opposing Apple’s efforts, which it views as undermining competition. The case continues to unfold, with potential ramifications for the broader app marketplace.

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