Apple's bid to delay App Store changes denied by court
What's the story
Apple has lost its appeal to delay key parts of a federal judge's order, which mandates the tech giant to open its App Store to more competition. The decision was made by the 9th US Circuit Court of Appeals, rejecting Apple's request for a stay on provisions while it appeals against Judge Yvonne Gonzalez Rogers's ruling. The order is part of an ongoing antitrust lawsuit filed by Epic Games, the developer behind the popular game Fortnite.
Contempt ruling
Barred from limiting developers
In April, Judge Gonzalez Rogers found Apple in contempt of a previous injunction order she had issued in the Epic Games case. The judge ordered Apple to stop several practices aimed at circumventing the injunction, including a new 27% fee on app developers for purchases made outside the App Store. The court also barred Apple from limiting where developers can place links for purchases outside of an app.
Apple's statement
'Disappointed with the decision': Apple
Reacting to the court's decision, Apple expressed disappointment over the refusal to stay the district court's order. The tech giant said it will continue to argue its case during the appeals process. In its emergency appeal, Apple argued that the ruling prevents it from controlling core aspects of its business and forces free access to its services.
Epic's counter
Epic Games counters Apple's claims
In response to Apple's appeal, Epic Games alleged that the tech giant is trying to continue avoiding competition and collecting fees barred by the judge. The game developer also claimed that since Judge Gonzalez Rogers issued her April injunction, Apple has seen a "surge of genuine competition" as developers have updated apps with "better payment methods, better deals, and better consumer choice."
Lawsuit details
Background of the case
Epic Games sued Apple in 2020, seeking to loosen its grip on transactions in apps using its iOS and how they are distributed to consumers. While Apple mostly won the case, Judge Gonzalez Rogers had ruled in 2021 that the tech giant must let developers steer consumers toward potentially cheaper non-Apple payment options. However, Apple defied that court order to maintain a multi-billion dollar revenue stream, Rogers wrote in April.