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

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 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.