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Apple Seeks to Pause Judge’s Order in Epic Games Case, Cites Irreparable Harm

Apple has requested that the 9th U.S. Circuit Court of Appeals temporarily halt a federal court ruling that mandates major changes to how it operates its App Store, arguing the company will suffer irreparable harm” if key provisions are enforced during its legal challenge.

Key Points:

  • Contempt Ruling: The motion follows U.S. District Judge Yvonne Gonzalez Rogers’ April 30 ruling, which found Apple in contempt of a 2021 antitrust injunction originally stemming from Epic Games’ lawsuit. She ordered Apple to end new App Store rules that allegedly circumvented the original order.

  • Apple’s Argument: Apple claims the ruling interferes with core business operations and that the company is being forced to give away access to its ecosystem without proper compensation. It specifically objected to:

    • A ban on Apple’s 27% commission for out-of-app purchases.

    • Restrictions on where developers may place external payment links.

  • Epic’s Response: Epic Games labeled Apple’s motion a last ditch effort” to avoid competition and maintain what it called junk fees.” The company said developers have already begun offering better deals and alternative payment methods since the injunction.

Context:

  • The Lawsuit: The legal battle began in 2020 when Epic challenged Apple’s dominance over iOS app distribution and in-app payment systems, claiming anti-competitive practices.

  • 2021 Injunction: A prior order from Judge Gonzalez Rogers required Apple to allow app developers to direct users to alternative payment platforms. Epic argued Apple had not complied in good faith.

  • Criminal Referral: In her recent ruling, the judge accused Apple of misleading the court and referred the company and an executive to federal prosecutors for a possible criminal contempt investigation.

What’s Next:

The appeals court must now decide whether to pause enforcement of the contempt ruling as Apple’s legal challenge proceeds. If denied, Apple would have to immediately comply with the injunction, potentially reshaping the App Store’s fee model and developer guidelines.

Google Seeks to Delay US Judge’s App Store Ruling Amid Security Concerns

Google has requested a California federal judge to delay the implementation of a recent court order that mandates opening its Google Play store to increased competition. In a filing submitted on Friday night, Google argued that the ruling, set to take effect on November 1, would introduce “serious safety, security, and privacy risks” to the Android ecosystem. The company, a subsidiary of Alphabet, also emphasized that the order could harm its business operations, prompting it to ask for a pause while it appeals the decision.

The ruling, handed down by U.S. District Judge James Donato on October 7, stems from a lawsuit filed by Epic Games, the developer of Fortnite. Epic successfully argued that Google was monopolizing the Android app marketplace, controlling how users download apps and make in-app payments. The court agreed, declaring that Google’s practices unfairly restricted competition and violated antitrust laws.

The injunction specifically requires Google to:

  1. Allow Android users to download apps from competing third-party platforms or stores.
  2. Permit the use of alternative in-app payment methods.
  3. Prohibit Google from paying device manufacturers to pre-install its Play Store.
  4. Stop revenue-sharing agreements with other app distributors.

If Judge Donato denies Google’s request to stay the injunction, the company plans to ask the 9th U.S. Circuit Court of Appeals to halt the order during its appeal process. Google already filed its notice of appeal to the 9th Circuit on Thursday. The appeals court will ultimately decide on the validity of Donato’s ruling as Google seeks to overturn the antitrust verdict.

This legal battle is one of several high-profile antitrust cases aimed at limiting the dominance of tech giants in digital marketplaces. While Epic Games celebrates this as a victory for competition and developers, Google maintains that such changes could undermine the security and privacy protections it has built into its app store and Android ecosystem.