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

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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.

Apple’s New Developer Fees Face EU Antitrust Scrutiny

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Apple’s newly introduced fees for app developers are drawing heightened scrutiny from European Union (EU) antitrust regulators, according to a Bloomberg report on Monday. The investigation centers on Apple’s new “core technology fee,” which charges developers €0.50 ($0.51) per app installation, raising concerns about potential cost inflation for software makers.

The EU regulators have reportedly distributed a fresh round of questionnaires as part of their inquiry, examining whether the new fees align with the bloc’s Digital Markets Act (DMA). The DMA, aimed at curbing the power of major tech platforms, restricts certain practices and imposes fines of up to 10% of a company’s annual revenue for violations.

Key Concerns Under Investigation

Officials are investigating whether Apple’s fee structure might result in higher costs for consumers or force developers to alter their business models. They are also questioning Apple’s claim that the new system will reduce costs for developers.

The timing of this scrutiny coincides with calls from Big Tech leaders in the U.S. for President-elect Donald Trump to push back against the EU’s regulatory actions targeting American technology firms.

Apple’s Regulatory Challenges

Apple has been under increasing pressure from regulators in both the U.S. and Europe over the fees it imposes on third-party developers using its App Store. While Apple maintains that 85% of developers on its platform pay no commission, the newly introduced fees have raised fresh concerns about compliance with the DMA.

Shares of the Cupertino-based tech giant fell by 1.8% in early trading following the news. Neither Apple nor the European Commission provided immediate comments on the matter.