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Epic Games Urges Court to Uphold Sanctions Against Apple in App Store Dispute

By  |  October 22, 2025

Apple urged a U.S. appeals court on Tuesday to overturn a federal judge’s order that prevents the company from collecting commissions on certain app purchases, according to Reuters. The iPhone maker also asked the court to dismiss a contempt finding issued against it for allegedly violating a previous court ruling in its long-running dispute with “Fortnite” creator Epic Games.

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    During the hearing before the San Francisco-based 9th U.S. Circuit Court of Appeals, Apple’s attorney, Gregory Garre of Latham & Watkins, argued that U.S. District Judge Yvonne Gonzalez Rogers had gone beyond the scope of her authority when she expanded the original restrictions on the App Store. According to Reuters, Garre contended that the district court had improperly broadened its 2021 injunction, which required Apple to allow developers to direct users toward non-Apple payment methods.

    Epic Games first sued Apple in 2020, challenging its control over app transactions and distribution on iOS. While Apple largely prevailed in the lawsuit, Gonzalez Rogers ruled in 2021 that the company must let developers provide links to alternative purchasing systems. Per Reuters, Apple later adjusted its rules but introduced a 27% commission on purchases made outside its App Store within a week of a referral link—slightly below the 30% charged for in-app transactions.

    After Epic accused Apple of failing to comply with the court’s initial directive, Gonzalez Rogers determined in April that the company had violated her injunction and issued a new order blocking Apple from tying commissions to off-app purchases. She also referred Apple and one of its executives to federal prosecutors for a possible criminal contempt review.

    Related: Google Loses Appeal to Pause App Store Overhaul Ordered in Epic Lawsuit

    Garre defended Apple’s conduct before the appellate panel, saying the company “is entitled to at least some compensation for developers’ access to its unparalleled innovations and vast user base.” He added that Apple was “prepared to come forward with an appropriate commission and justify it.”

    Circuit Judge Milan Smith expressed concern about the scope of the April injunction, noting that it represented a potentially massive financial impact. “That’s quite a penalty. We’re talking billions of dollars,” Smith said, according to Reuters.

    Epic’s lawyer, Gary Bornstein of Cravath, Swaine & Moore, countered that Apple should not be permitted to renegotiate its commission model after failing to comply with the original order. “That’s not how injunction compliance operates,” Bornstein said.

    The appeals court is expected to issue a ruling later this year or in early 2026. Either party may seek further review from the U.S. Supreme Court.

    The case is Epic Games Inc v. Apple Inc, 9th U.S. Circuit Court of Appeals, No. 25-2935.

    Source: Reuters