Apple Appeals to Supreme Court to Overturn Epic Ruling on Anti-Steering Laws

Apple is taking their case to the Supreme Court in an effort to overturn the Ninth Circuit ruling that found them in violation of California’s anti-steering laws. The ruling currently requires Apple to allow links to outside payment methods and storefronts, creating third-party alternatives to their own payment system and bypassing their 30% cut. While Apple experienced some victories in their appeal against Epic’s controversial case, this particular point remains a major concern for the company.

It is important to note that this ruling would only impact Apple within the United States. However, the company is also facing pressure in the European Union to comply with the Digital Markets Act, which would similarly require them to allow alternative app stores on their devices. The ongoing case was previously ruled on in the US in September 2021, with Apple appealing the decision. While the subsequent ruling mostly favored Apple, this specific point did not.

Seeking an Appeal in the Ninth Circuit

The Ninth Circuit is a subordinate district to the Supreme Court, responsible for appeal rulings in cases on the west coast of the United States, including California, Hawaii, and Alaska. It is known for a relatively high rate of overturning cases taken to the Supreme Court. However, the outcome of an appeal is also influenced by various factors, such as the number and nature of cases brought to the court.

It remains uncertain whether Apple will win this case on appeal. Nevertheless, their decision to pursue the appeal to the highest court highlights the significant control that Apple holds over its walled-garden mobile ecosystem. With reports indicating that up to 90% of iOS transactions occur outside of Apple’s ecosystem, thereby avoiding commissions, it is understandable why the company is determined to protect this significant revenue stream.