Apple (NASDAQ:AAPL) is taking a new approach in its ongoing legal battle with Epic Games, asking a federal judge to force both companies into settlement talks over App Store rules and fees.
The iPhone maker filed a motion Thursday seeking a court-ordered settlement conference before Magistrate Judge Joseph C. Spero, the publication 9to5Mac reported.
Benzinga contacted Apple and Epic Games for comment but did not receive a response at the time of publication.
Epic did not agree to Apple’s request before the filing, according to the motion. Apple said its attorneys had discussed the proposed settlement conference with Epic’s legal team on Aug. 11.
The move comes amid a broader fight over Apple’s compliance with a federal court ruling that required the company to allow developers to direct customers to payment options outside Apple’s in-app purchasing system.
Apple had previously sought to impose a 27% commission on purchases made through external payment systems. That approach became the subject of a contempt dispute after Judge Yvonne Gonzalez Rogers found Apple had failed to comply with the court’s requirements.
The Supreme Court rejected Apple’s request to halt the lower-court proceedings while it considers the company’s challenge to the contempt finding, adding pressure to the ongoing dispute.
Apple separately submitted a proposal outlining how it believes commissions on purchases made outside the App Store should work in the U.S. Under that framework, Apple could collect commissions of as much as 15% on transactions processed through alternative payment systems.
Epic immediately objected to the proposal. The “Fortnite” developer argues that the proposed fees exceed what the Ninth Circuit has indicated Apple can charge for purchases made through external payment options,
The settlement motion represents a separate step from Apple’s commission proposal. Rather than presenting a specific settlement offer, Apple is asking the court to bring the two sides together for confidential negotiations in an effort to resolve the remaining issues.
The filing also points to guidance from the Ninth Circuit encouraging Apple and Epic to reach an agreement over an appropriate commission for transactions completed through external payment systems.
The case stems from Epic’s 2020 lawsuit challenging Apple’s control over iOS in-app payments and restrictions on directing users to external payment options, Reuters reported. Apple largely won the underlying case, but a 2021 injunction required the company to allow developers to link out to alternative payment systems.
Photo: Faughender/Courier Journal / USA TODAY NETWORK via Imagn Images
Login to comment