Epic opposes Apple's request to pause App Store fee proceedings

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Reviewed by
Anirudha BScanX News Team
Key Highlights

Epic Games has formally opposed Apple's request to pause lower-court proceedings regarding App Store commissions for external purchases. The dispute centers on whether the Supreme Court's review of a civil contempt finding should delay the determination of Apple's fee structure. Apple argues the review is necessary, while Epic claims the delay tactic could push the process into 2027.

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The long-running legal war between Epic Games and Apple is entering a new phase as the companies clash over whether Apple can delay a court process that could reshape how the iPhone maker collects fees from developers. Epic Games has formally opposed Apple’s request to pause lower-court proceedings that will determine what commission Apple can charge when users complete purchases outside the App Store. The dispute comes as the U.S. Supreme Court prepares to review a separate issue involving Apple’s civil contempt finding, though Epic argues that this review should not slow down the commission proceedings already underway.

At the center of the fight is Apple’s App Store business model, which has long relied on collecting commissions from digital purchases made inside apps. Epic argues Apple’s policies have allowed it to maintain excessive control over payments on iOS, while Apple says its fees support the security, infrastructure and services behind the App Store. The current dispute stems from a 2021 ruling by U.S. District Judge Yvonne Gonzalez Rogers, who ordered Apple to allow developers to direct users to alternative payment methods outside Apple’s in-app purchasing system.

Apple complied by allowing external links but attached restrictions and imposed a 27% commission on purchases made through those links. Judge Rogers later ruled that Apple’s approach violated the injunction and found the company in civil contempt. Apple has challenged that finding, arguing the original order did not explicitly prevent it from charging a commission on outside purchases. The Supreme Court agreed to hear Apple’s appeal of the contempt issue but declined to take up Apple’s broader challenge over the scope of the injunction.

Apple is now asking the lower court to pause proceedings while the Supreme Court considers the contempt question, arguing the outcome could affect the legal foundation for determining an appropriate commission structure. Epic, however, argues Apple is using the Supreme Court review as a way to delay a decision on the fee structure. In its filing, Epic said the Supreme Court is reviewing only a narrow contempt issue and that the lower court will still need to address what commission, if any, Apple can charge regardless of the outcome.

Epic warned that waiting for the Supreme Court’s decision could push the process into 2027, slowing efforts to create more competition around Apple’s payment system. The company argued that moving forward now would be "most efficient" because the commission question remains unresolved. Under the current schedule, Apple is expected to file its reply supporting its request for a pause on July 13. If the court rejects Apple’s motion, the company will be required to submit its proposed external-link commission structure within 24 hours of the ruling.

Event Date Detail
Apple Reply Filing July 13 Deadline to support request for pause
Potential Ruling Post-July 13 Court decision on pause motion
Commission Submission 24 hours post-ruling If motion is rejected

The outcome could have broader implications beyond Epic and Apple. A court decision limiting Apple’s ability to collect fees on outside payments could pressure the company’s App Store economics and strengthen arguments from regulators and developers who have accused Apple of operating a closed digital marketplace.

How might a reduction in Apple's commission structure impact the profitability of the broader App Store ecosystem?

Could the Supreme Court's decision on the narrow contempt issue set a precedent for future antitrust enforcement against big tech?

If the court rejects Apple's proposed 27% fee, what alternative commission models might be considered viable?

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Apple commits $30bn to Broadcom for US-made chips

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Reviewed by
Jubin VScanX News Team
Key Highlights

Apple has entered a multiyear agreement with Broadcom worth over $30 billion to produce custom silicon and wireless components, generating 15 billion U.S.-made chips. Broadcom will invest $1.5 billion to expand its Fort Collins, Colorado facility. This deal is Apple's largest under its American Manufacturing Program, part of a broader $600 billion U.S. investment pledge.

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Apple has entered a new multiyear agreement with Broadcom to design and produce custom silicon components and wireless connectivity technologies, a deal expected to exceed $30 billion. The partnership will result in the production of more than 15 billion U.S.-made chips and support hundreds of American jobs. This commitment represents Apple's largest investment under its American Manufacturing Program (AMP) to date, advancing efforts to create an end-to-end silicon supply chain in the United States.

Strategic Investment and Expansion

As part of the agreement, Broadcom will invest $1.5 billion in capital expenditure to expand and modernize its manufacturing facilities in Fort Collins, Colorado. The site will produce advanced radio frequency components, including FBAR filters, and other cutting-edge wireless connectivity technologies. These components are essential for the performance and connectivity of a wide range of Apple products.

Leadership Commentary

Tim Cook, Apple’s CEO, emphasized the strategic importance of the partnership. "Apple and Broadcom have a long history together, and this new phase of our partnership further accelerates our commitment to American manufacturing and innovation," Cook said. He noted that the components built in Fort Collins are critical to delivering the performance customers expect and expressed gratitude to the administration for supporting such projects.

Hock Tan, Broadcom’s president and CEO, also highlighted the enduring collaboration. "Broadcom is proud to continue to work with Apple after decades of success together, and we share a strong commitment to American innovation," Tan stated. He confirmed that the investment would expand the manufacturing footprint in Fort Collins, where the company creates technology that connects people globally.

Broader Economic Commitment

The agreement aligns with Apple's broader pledge to invest $600 billion in the U.S. economy over four years. This investment supports manufacturing, job creation, and technology development across the country. By leveraging domestic suppliers like Broadcom, Apple aims to strengthen its supply chain and foster innovation within the United States.

Key Investment Details
Total Agreement Value Over $30 billion
Chips to be Produced More than 15 billion
Capital Expenditure $1.5 billion
Facility Location Fort Collins, Colorado

How will this partnership impact Apple's reliance on international suppliers for wireless components?

What are the potential risks or challenges of scaling domestic production to meet the 15 billion chip target?

Could this agreement signal a broader trend of U.S. tech companies reshoring critical supply chain components?

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