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Apple Loses Appeal to Delay App Store Antitrust Reforms in Epic Games Case

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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.

Apple Seeks Temporary Stay from US Appeals Court on Epic Games Verdict

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Apple has formally requested that a federal appeals court temporarily suspend key parts of a recent ruling requiring the company to open up its App Store to more competition. This request was filed with the San Francisco-based 9th US Circuit Court of Appeals as Apple seeks to pause the enforcement of the order while it pursues a legal challenge. The tech giant warned that if the order issued on April 30 is not stayed, it could suffer irreparable harm.

The ruling in question stems from a 2020 antitrust lawsuit filed by Epic Games, the creator of the popular game Fortnite. The case has been closely watched for its potential to reshape how Apple manages its App Store and interacts with third-party app developers. Apple has been found in contempt for allegedly violating an earlier court injunction by maintaining certain policies that the judge deemed restrictive.

US District Judge Yvonne Gonzalez Rogers ordered Apple to halt several practices designed to sidestep the original injunction. Among these, Apple faces restrictions on implementing a new 27 percent fee on developers for app purchases made outside the App Store. Additionally, the judge’s order bars Apple from limiting where developers can place links directing users to alternative purchase options outside of an app.

In its court filing, Apple argued that forcing the company to comply with the ruling would mean giving away access to its products and services for free, which it says is legally untenable. The company is actively challenging these specific provisions, asserting that they interfere with Apple’s ability to control core aspects of its business and set terms for the App Store ecosystem.

Apple Set to Avoid EU Fine Over Browser Options on iPhones

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Apple is expected to avoid a possible fine and an order from the European Union regarding its browser options on iPhones, following changes made to comply with the EU’s landmark Digital Markets Act (DMA), according to sources familiar with the matter. The European Commission, which launched an investigation in March 2024, is anticipated to conclude its probe early next week.

EU Investigation and Browser Design Concerns

The European Commission had raised concerns over Apple’s design of the web browser screen on iPhones, specifically questioning whether it hindered users from switching to alternative browsers or search engines. The investigation, part of the broader effort to regulate Big Tech, has focused on how Apple’s design practices might impact competition in the digital market.

Closing of Investigation and Regulatory Action

Sources indicate that the European Commission is set to close the investigation soon, with no penalties expected for Apple. This follows the company’s recent changes aimed at addressing the concerns raised under the DMA, a regulation designed to ensure fair competition in the digital market. The DMA aims to make it easier for consumers to switch between competing online services, such as browsers and app stores, while also allowing smaller rivals to have a fairer chance to compete.

Context of EU Regulations

The DMA outlines strict guidelines for Big Tech companies, with fines reaching as much as 10% of a company’s global annual sales for violations. In addition to this case, the European Commission is expected to announce fines for Apple and Meta Platforms in other separate cases involving violations of the DMA. Apple faces scrutiny over restrictions that prevent app developers from informing users about offers outside its App Store for free. Meanwhile, Meta’s case concerns its paid subscription service, which critics argue should offer free alternatives.

Broader Impact on Big Tech

This development comes amid ongoing tensions between the EU and the U.S., especially with U.S. President Donald Trump threatening tariffs against countries that impose fines on American companies. The European Commission has declined to comment on these investigations.