U.S. Supreme Court Grants Apple Temporary Reprieve in App Store Case

U.S. Supreme Court Justice Elena Kagan ruled that the dual appeals in Apple v. Epic can stand as-is, meaning that Apple gets a temporary reprieve from being forced to allow app developers to communicate and use alternative payments methods.

“Epic won at trial its claim that various ‘anti-steering’ rules imposed by Apple on mobile application (app) developers violate California’s Unfair Competition Law,” Epic’s lawyers wrote in their filing to vacate the stay on the original ruling. “The district court enjoined Apple from enforcing these anticompetitive rules against developers, such as Epic and others. [But] Apple appealed to the Ninth Circuit, overwhelmingly relying on state law grounds. Based on those state law arguments, Apple sought a stay of the district court’s injunction pending appeal. A motions panel granted the stay.”

Epic, of course, argued that the ruling should take effect immediately, requiring Apple to let app developers that target its mobile platforms explain to users, in their own apps, that there are cheaper payment methods they can use and then direct them to those alternatives. Apple, of course, is trying to prevent that so that it can continue to collect its 30 percent fee for in-app purchases as long as possible.

“Application (23A78) denied by Justice Kagan,” is Justice Kagan’s entire take on this request.

And while the rationale behind the decision is not explained, the net effect is that the original ruling will not be enforced pending Apple’s appeal. So both sides now have to wait on the United States Court of Appeals for the Ninth Circuit to rule on that appeal, giving a victory to Apple.