Appeals court backs contempt finding against Apple, but reopens a door for iPhone app fees

Core Points - A federal appeals court upheld a ruling that found Apple in civil contempt for not complying with an order to allow alternative payment systems in its iPhone app store, but it also allowed Apple to collect commissions from these rival options [1][2][5] Group 1: Legal Rulings - The Ninth Circuit Court of Appeals confirmed a contempt order from U.S. District Judge Yvonne Gonzalez Rogers, which was part of a legal battle initiated by Epic Games [2][5] - The appeals court overturned a specific part of the contempt ruling that prohibited Apple from charging commissions on purchases made through external payment systems [3][4] Group 2: Financial Implications - The appeals judges deemed the ban on Apple collecting fees from rival payment options as too harsh and instructed the lower court to determine a fair commission rate for Apple [4] - Apple's in-app purchase commissions range from 15% to 30%, contributing significantly to its services division, which generates over $100 billion in annual revenue [6] Group 3: Background of the Case - The legal dispute began in 2020 when Epic Games accused Apple of creating a monopolistic environment in the iPhone app store [5][6] - Although the lower court did not classify the iPhone app store as an illegal monopoly, it mandated that Apple allow links to alternative payment options within apps [7]