Supreme Court ruling allows Apple to continue blocking links to third-party app-payment services

The Supreme Court today ruled in favor of Apple and against Fortnite developer Epic Games by preventing an injunction ordered by a federal judge from taking effect. Back in September 2021, Judge Yvonne Rogers Gonzalez issued her decision on a court case that was heard after Apple tossed Fortnite out of the App Store for trying to offer iPhone owners an alternate method of paying for in-app purchases including currency used within the game. This would deny Apple from taking its 15% to 30% cut of such transactions.

The judge ordered Apple to allow developers to include in-app links to third-party payment platforms to get around the so-called "Apple Tax." Earlier this year, the 9th Circuit Court of Appeals ruled that Apple had violated California’s Unfair Competition Law by denying developers the opportunity to inform consumers about alternative payment platforms which included transactions made via the Epic Games Store. But the court put its ruling on hold to give Apple time to file with the Supreme Court for its case to be heard.

But today, Justice Elena Kagan ruled against Epic by saying that she would not allow the decision by the 9th Circuit Court of Appeals to immediately take effect. According to Bloomberg, Kagan is the justice who handles emergency matters coming from the 9th Circuit Court of Appeals which is based in San Francisco. If the Supreme Court decides not to hear the case, the reprieve Apple received today would be temporary and the previous ruling by the 9th Circuit Court of Appeals, which would force Apple to allow developers to promote alternative payment methods, would take effect.

The so-called Apple Tax generates billions of dollars for Apple each year and because Apple does not allow the use of third-party app stores with its devices, lawmakers and app developers in the U.S. and overseas have called Apple a monopolist.