Epic Games successfully thwarts Apple's attempt to postpone changes to the App Store rules, as ordered by the court.
iPhone Maker's Bid to Halt Competition Rules Fails
Last Wednesday, Apple went up against the U.S. appeals court and fell short in its quest to put a hold on crucial sections of a federal judge's order that forces the tech titan to open its lucrative App Store to a tougher competition landscape.
The 9th U.S. Circuit Court of Appeals flatly refused Apple's plea, insisting the tech titan keeps up the fight through the appeals process while the judge's order remains enforceable.
The judge's ruling against Apple came in a lengthy antitrust lawsuit by "Fortnite" developer Epic Games.
Apple, in response, issued a statement expressing dismay at the decision, noting they would keep fighting the battle throughout the appeals phase.
Judge Yvonne Gonzalez Rogers found Apple guilty of contempt of an earlier injunction order issued in the Epic Games case back in April.
The judge, on April 30, warned Apple to discard practices she deemed to bypass the injunction, such as imposing a 27% fee on app developers for transactions made outside the App Store.
The court also proscribed Apple from limiting developers' links to external purchasing avenues.
Epic Games' CEO Tim Sweeney took to social media to celebrate the decision, declaring an end to the long-standing "Apple tax".
Apple argued in its emergency appeal that the ruling encroached upon its autonomy to control its business strategies, demanding it to grant access to its services for free.
Epic Games countered by accusing Apple of attempting to dodge competition and revenue-generating fees the judge had outlawed.
According to Epic Games, since Judge Gonzalez Rogers' April pronouncement, developers have been tapping into "better payment methods, better deals, and better consumer choice"[2].
Epic Games first took legal action against Apple in 2020 to challenge the company's control over app transactions and distribution[3]. Although Apple mostly emerged victorious in the case, Gonzalez Rogers ruled in 2021 that Apple must grant developers more freedom to steer consumers towards alternative payment options[3].
Apple defied that court order, leading Gonzalez Rogers to assert in April that the company was intentionally dodging the ruling to safeguard a revenue stream worth billions of dollars[3]. She also recommended Apple and a top executive to federal prosecutors for a possible criminal contempt investigation[3].
Additional Insights:- The rejection of Apple's emergency stay request by the 9th U.S. Circuit Court of Appeals marks a significant milestone in the ongoing antitrust lawsuit[1][3][4].- This court ruling has far-reaching consequences for Apple's App Store, compelling the tech giant to abandon practices that circumvent previous injunctions[4].- Some apps have already embraced external payment systems, which could potentially chip away at Apple's significant revenue[2].- Fortnite secured its return to the App Store after being withdrawn during the legal standoff, with Apple approving its reinstatement on May 20, 2025[3].- Apple aims to carry on with its appeals challenge, while Epic Games' victory in securing developers' freedom to guide consumers towards alternative payment options could impact Apple's App Store revenue[2][3].
The iPhone maker's legal battle with Epic Games over the App Store's business practices extended to the industry, with the 9th U.S. Circuit Court of Appeals ruling against Apple's bid to halt competition rules. Finance is at stake, as the judge's order may force Apple to share its lucrative App Store with tougher competition, impacting its revenue stream worth billions.
