Supreme Court Upholds Contempt Order Against Apple in Epic Games Case

Reuters | May 06, 2026 at 02:25 PM UTC
Bearish 79% Confidence Unanimous Agreement
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Key Points

  • Apple was found in contempt for charging a 27% commission on purchases made through external payment systems within seven days of users clicking a link, which Epic argued violated the original injunction meant to loosen Apple's App Store control
  • The 9th Circuit upheld the contempt finding in December but allowed Apple to make new arguments about what commission rate should be permitted for third-party payment transactions
  • Apple argues the ruling affects millions of app purchases and that regulators worldwide are watching to determine acceptable commission rates, while Epic contends Apple is attempting to sidestep the original injunction and continue profiting unfairly

AI Summary

Supreme Court Upholds Contempt Order Against Apple in Epic Games Case

The U.S. Supreme Court rejected Apple's request on May 6 to temporarily block a contempt order stemming from its long-running antitrust battle with Epic Games over App Store practices. Justice Elena Kagan denied Apple's motion to pause a 9th Circuit Court ruling that found the iPhone maker in contempt for violating court-mandated changes to its App Store operations.

Background: Epic Games sued Apple in 2020, challenging the company's control over iOS app transactions and distribution. While Apple largely won the lawsuit, a 2021 court injunction required the company to allow developers to include links directing users to non-Apple payment methods.

Key Issue: Apple complied by permitting external payment links but imposed a 27% commission on purchases made through third-party systems within seven days of clicking such links—only slightly below its standard 30% in-app commission. Epic argued this new fee violated the original injunction. In 2025, U.S. District Judge Yvonne Gonzalez Rogers found Apple in contempt, a decision the 9th Circuit upheld in December while allowing Apple to argue what commission rate should be permissible.

Apple's Position: The company denies violating the injunction and argues it should only apply to Epic Games, not millions of developers. Apple warns the ruling affects how millions of app purchases are made and notes that international regulators are monitoring the case to determine acceptable commission rates in major markets outside the U.S.

Market Implications: This decision maintains pressure on Apple's lucrative App Store business model and could force further commission adjustments, potentially impacting the company's services revenue stream while setting precedent for global app marketplace regulation.

Model Analysis Breakdown

Model Sentiment Confidence
GPT-5-mini Bearish 80%
Claude 4.5 Haiku Bearish 72%
Gemini 2.5 Flash Bearish 85%
Consensus Bearish 79%