July 23 (Reuters) - Apple ( AAPL ) is hoping a new U.S.
Supreme Court ruling curbing the power of federal judges to
issue nationwide orders will help the technology giant win an
appeal in a lawsuit requiring it to revamp its lucrative App
Store.
In a court filing on Tuesday, Apple ( AAPL ) told the San
Francisco-based 9th U.S. Circuit Court of Appeals that the
Supreme Court's June order in a case involving birthright
citizenship bolsters the iPhone maker's arguments in a
high-stakes standoff with "Fortnite" game developer Epic Games.
The Supreme Court limited when judges can issue so-called
universal injunctions that apply broadly, and not just to the
parties in a lawsuit.
The justices did not rule on whether the Trump
administration can legally terminate the right to citizenship
for people born on U.S. soil, but the decision was a win for the
administration, which had complained about individual lower
courts blocking its policies nationwide.
Even though the case at the high court had nothing to do
with Apple ( AAPL ), its appeal could test the scope of the justices'
ruling.
Apple ( AAPL ) and Epic did not immediately respond to requests for
comment.
Apple ( AAPL ) in its appeal is challenging a U.S. district judge's
order in April that said the company must open its App Store to
more competition, allowing all developers - not just Epic - more
freedom to steer consumers to alternative payment options
outside of an app.
The appeal also challenges the judge's finding that Apple ( AAPL )
was in contempt for violating a prior injunction in the same
case.
Epic Games sued Apple ( AAPL ) in 2020 to loosen its control over
transactions in applications that use its iOS operating system
and how apps are distributed to consumers.
U.S. District Judge Yvonne Gonzalez Rogers in 2021 said
Apple ( AAPL ) must allow developers to more easily steer consumers to
potentially cheaper non-Apple ( AAPL ) payment options.
Apple ( AAPL ) defied that court order to maintain a revenue stream
worth billions of dollars, Gonzalez Rogers ruled in April. Apple ( AAPL )
has denied any wrongdoing, and defended its compliance with the
court's orders.
Apple ( AAPL ) told the 9th Circuit that, after the Supreme Court's
birthright citizenship decision, judges no longer have
freestanding authority to issue universal injunctions. Apple ( AAPL )
also noted that Epic pursued its lawsuit on its own, not as a
class action on behalf of a larger group.
Epic told the appeals court in May that Apple's ( AAPL ) App Store
changes will have wide-reaching benefits for the industry and
consumers.
"The sky has not fallen. Instead, developers and consumers
are finally beginning to see the long-awaited benefits of
increased competition," Epic said.
The case is Epic Games Inc v. Apple Inc ( AAPL ), 9th U.S. Circuit
Court of Appeals, No. 25-2935.
For Epic: Gary Bornstein and Yonatan Even of Cravath, Swaine
& Moore
For Apple ( AAPL ): Gregory Garre and Roman Martinez of Latham &
Watkins
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