Apple Fails to Halt App Store Reform in Epic Games Legal Battle

Apple Fails to Halt App Store Reform in Epic Games Legal Battle image

Image courtesy of Mac Rumors

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Apple has lost its bid to delay key components of a federal court order that requires the company to open up its App Store to greater competition. On Wednesday, the 9th U.S. Circuit Court of Appeals rejected Apple’s request to pause the order while it appeals the decision stemming from a high-profile antitrust case brought by Fortnite creator Epic Games.

The decision upholds an April ruling by U.S. District Judge Yvonne Gonzalez Rogers, who found Apple in contempt for not complying with a previous injunction in the case. She ordered Apple to stop several practices she said were designed to sidestep the original mandate, including a controversial 27% fee on developers for purchases made outside the App Store.

The judge also prohibited Apple from limiting where developers can place external purchase links within their apps—a measure meant to give users more payment options.

In its emergency appeal, Apple argued that the order strips it of control over core business operations and essentially forces it to offer free access to its platform and services. Apple expressed disappointment in the appeals court’s decision, saying it would continue to fight the ruling as part of the appeals process.

Epic Games did not immediately comment, but in previous filings, the company accused Apple of trying to maintain its dominance by blocking competition and continuing to collect fees that the court had already banned.

According to Epic, developers have embraced the changes, leading to a “surge of genuine competition” and more favorable options for consumers, including better payment methods and lower prices.

The legal dispute began in 2020, when Epic sued Apple in an effort to loosen its grip over iOS app distribution and in-app payment systems. While Apple largely prevailed in the case, the court ruled in 2021 that it must allow developers to direct users to alternative, potentially cheaper payment methods outside of Apple’s system.

Judge Gonzalez Rogers said Apple defied that order in an effort to protect billions in revenue and misrepresented its compliance efforts to the court. She has referred the company and one of its executives to federal prosecutors for a potential criminal contempt investigation.

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