Apple has filed an urgent request with a US appeals court to pause a recent ruling that could significantly alter the operations of its App Store and potentially cost the company billions.
The appeal comes in response to a scathing decision last week by US District Judge Yvonne Gonzalez Rogers, who found that Apple had wilfully violated a 2021 injunction issued in an antitrust case brought by Epic Games, the maker of the popular game Fortnite. That earlier order required Apple to allow app developers to direct users to alternative payment methods outside of the App Store — a move meant to reduce Apple’s control over digital commerce on iOS.
In a strongly worded contempt ruling, Judge Gonzalez Rogers accused Apple of continuing to restrict competition and of deliberately implementing new developer fees that undermine the original court order. “Apple knew exactly what it was doing and at every turn chose the most anticompetitive option,” she wrote. The judge singled out CEO Tim Cook, stating he ignored internal advice to comply with the injunction.
Apple responded this week by challenging the decision. In court filings submitted Wednesday, the company described the ruling as “extraordinary” and claimed the judge had overstepped by interfering in its business operations. Apple’s lawyers argued that the court cannot lawfully compel the company to “permanently give away free access to its products and services, including intellectual property.”
The tech giant also requested that the appeals court lift a ban that prevents it from collecting fees on purchases made through alternative payment systems. Apple claims that being barred from doing so could lead to “substantial” financial losses, even though no court has deemed its conduct illegal.
The broader legal battle dates back to 2020, when Epic Games filed suit accusing Apple of maintaining an unlawful monopoly via its App Store, which collects commissions of 15% to 30% on in-app purchases. While the judge rejected the monopoly allegation, she found Apple’s restrictions on alternative payments violated California’s competition laws and ordered reforms in 2021.
Epic later argued that Apple had failed to comply, prompting last week’s contempt ruling. Apple insists it will follow the court’s directive for now, but continues to push for reversal on appeal.
The outcome of this case could set a precedent with major implications for digital marketplaces and how tech giants manage their platforms.
