Smartphone with Epic Games logo is seen in front of Apple logo in this illustration taken, May 2, 2021. REUTERS/Dado Ruvic/Illustration

By Mike Scarcella

WASHINGTON, Dec 11 (Reuters) - Apple persuaded a U.S. appeals court on Thursday 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 consumer purchases that do not take place on the Apple platform. The appeals court ruling gives Apple a chance to make a claim to a reasonable commission on those transactions.

Epic Games chief executive Tim Sweeney heralded the court's order on Thursday, which he said bars Apple from imposing "giant junk fees" on developers. He said the ruling will benefit developers and consumers.

"After years of Apple obstruction, we're finally going to see large-scale change happening," Sweeney said.

Apple did not immediately respond to a request 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 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. Apple had denied violating court orders.

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.

The appeals court ruling said that although Apple should be able to charge a commission on linked-out purchases, there should be some limitations.

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; Editing by Muralikumar Anantharaman)