Apple cites Supreme Court's birthright ruling in fight over Epic Games injunction

Reuters

4 days ago

July 23 (Reuters) - Apple (AAPL.O), opens new tab is hoping a new U.S. Supreme Court ruling curbing the power of federal judges to issue nationwide orders will help the technology giant win an appeal in a lawsuit requiring it to revamp its lucrative App Store.
In a court filing, opens new tab on Tuesday, Apple told the San Francisco-based 9th U.S. Circuit Court of Appeals that the Supreme Court's June order in a case involving birthright citizenship bolsters the iPhone maker's arguments in a high-stakes standoff with 'Fortnite' game developer Epic Games.
The Supreme Court limited when judges can issue so-called universal injunctions that apply broadly, and not just to the parties in a lawsuit.
The justices did not rule on whether the Trump administration can legally terminate the right to citizenship for people born on U.S. soil, but the decision was a win for the administration, which had complained about individual lower courts blocking its policies nationwide.
Even though the case at the high court had nothing to do with Apple, its appeal could test the scope of the justices' ruling.
Apple and Epic did not immediately respond to requests for comment.
Apple in its appeal is challenging a U.S. district judge's order in April that said the company must open its App Store to more competition, allowing all developers — not just Epic — more freedom to steer consumers to alternative payment options outside of an app.
The appeal also challenges the judge's finding that Apple was in contempt for violating a prior injunction in the same case.
Epic Games sued Apple in 2020 to loosen its control over transactions in applications that use its iOS operating system and how apps are distributed to consumers.
U.S. District Judge Yvonne Gonzalez Rogers in 2021 said Apple must allow developers to more easily steer consumers to potentially cheaper non-Apple payment options.
Apple defied that court order to maintain a revenue stream worth billions of dollars, Gonzalez Rogers ruled in April. Apple has denied any wrongdoing, and defended its compliance with the court's orders.
Apple told the 9th Circuit that, after the Supreme Court's birthright citizenship decision, judges no longer have freestanding authority to issue universal injunctions. Apple also noted that Epic pursued its lawsuit on its own, not as a class action on behalf of a larger group.
Epic told the appeals court in May that Apple's App Store changes will have wide-reaching benefits for the industry and consumers.
'The sky has not fallen. Instead, developers and consumers are finally beginning to see the long-awaited benefits of increased competition,' Epic said.
The case is Epic Games Inc v. Apple Inc, 9th U.S. Circuit Court of Appeals, No. 25-2935.
For Epic: Gary Bornstein and Yonatan Even of Cravath, Swaine & Moore
For Apple: Gregory Garre and Roman Martinez of Latham & Watkins
Read more:
Apple, Visa and Mastercard win dismissal of merchant antitrust lawsuit over payment fees
Epic Games settles lawsuit against Samsung over app controls
Swiss privacy tech firm Proton sues Apple in US over app store rules
Apple must face consumer lawsuit over iCloud storage, US judge rules