By Mike Scarcella
WASHINGTON, Dec 11 (Reuters) - Apple on Thursday persuaded a U.S. appeals court to reverse parts of a court order requiring the iPhone maker to make changes to its lucrative App Store to promote greater competition, but lost its bid to overturn a sweeping injunction.
The San Francisco-based 9th U.S. Circuit Court of Appeals, ruling in a lawsuit brought by Fortnite maker Epic Games, said parts of a judge's April order holding Apple in contempt for violating a prior decision were overbroad
and must be modified. But the appeals court upheld most of the contempt finding and an earlier injunction against Apple in the case.
The three-judge panel altered part of the lower court's ruling that barred Apple from charging any commission or fee tied to purchases that do not take place on the Apple platform. The appeals court said the trial judge must now modify that part of her order.
Apple and Epic did not immediately respond to requests for comment.
Epic Games filed the lawsuit in 2020, seeking to loosen Apple's control over transactions in applications that use its iOS operating system and its restrictions on how apps were distributed to consumers.
Apple mostly won the lawsuit, but was required in a 2021 court injunction to allow developers to include links in their apps directing users to alternative purchasing methods.
Apple removed some restrictions but added new ones, including imposing a 27% commission on developers for purchases made outside the App Store within seven days of clicking a link. Apple charges developers a 30% commission fee for purchases within the App Store.
Epic complained that the new 27% commission flouted the earlier injunction and urged the court to hold Apple in contempt.
U.S. District Judge Yvonne Gonzalez Rogers ruled in April that Apple had defied her 2021 injunction and imposed a new ban on commissions tied to off-app purchases. She also referred the company to federal prosecutors for possible criminal contempt.
Apple argued in its appeal that the new order had improperly expanded on the original injunction. The appeals court order rejected Apple's arguments that the injunction should not have applied beyond Epic Games itself.
(Reporting by Mike Scarcella;)
