Apple has failed in its latest attempt to delay a U.S. court order requiring changes to its App Store practices, marking a significant setback in its long-running legal battle with Epic Games. The 9th U.S. Circuit Court of Appeals on Wednesday rejected Apple’s request to pause enforcement of parts of the federal judge’s injunction while it pursues further appeals.
The case stems from Epic Games’ 2020 lawsuit challenging Apple’s control over its iOS App Store and in-app payment system. Epic argued that Apple’s policies stifle competition and allow it to collect excessive fees from app developers.
Court Orders Apple to Open App Store to More Competition
In April, U.S. District Judge Yvonne Gonzalez Rogers found Apple in contempt of her previous injunction and ordered the company to immediately cease several business practices that restricted developers’ ability to direct users to alternative payment options. Among the practices targeted was Apple’s introduction of a 27% fee on developers who facilitate payments outside of the App Store—a fee the judge said was an attempt to sidestep the original injunction.
Additionally, the court barred Apple from restricting where app developers can place links or buttons that lead users to external purchasing platforms.
Epic Games CEO Tim Sweeney celebrated the appeals court decision on social media, stating that the “long national nightmare of the Apple tax is ended.”
Apple Argues for Business Control, Epic Sees New Competition
In its emergency appeal, Apple argued that the ruling strips it of control over “core aspects of its business operations” and unfairly compels the company to give developers free access to its platform services. Apple also expressed disappointment at the appeals court decision but vowed to continue its legal battle.
Epic Games countered that Apple’s actions were aimed at preserving its dominance and maintaining revenue streams that the court had ruled were anti-competitive. Epic claimed that since the injunction was issued, many developers have already introduced better payment systems, improved deals, and expanded choices for consumers, increasing genuine competition on iOS.
Ongoing Legal Risks for Apple
This latest ruling leaves Apple exposed to continued legal and regulatory scrutiny. Judge Gonzalez Rogers previously accused Apple of misleading the court about its compliance efforts and referred both Apple and one of its executives to federal prosecutors for potential criminal contempt charges.
While Apple won most aspects of the original lawsuit in 2021, Gonzalez Rogers did rule that the company must allow developers to inform users about alternative payment options outside of Apple’s in-app purchase system.
The outcome of Apple’s ongoing appeal will likely have significant implications for the future of digital marketplaces and the company’s multibillion-dollar App Store revenue.