Apple faces a setback as court denies pause on App Store reform order from Epic Games case - PRESS AI WORLD
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Apple faces a setback as court denies pause on App Store reform order from Epic Games case

Credited from: CHANNELNEWSASIA

  • Apple's appeal to pause court-ordered App Store changes was denied.
  • The 9th U.S. Circuit Court upheld a ruling favoring Epic Games in a longstanding antitrust lawsuit.
  • Under new provisions, Apple can no longer charge commissions on transactions redirected to external sites.

Apple has suffered a significant legal setback as a U.S. appeals court rejected the company's request to pause key components of a court order demanding it to open its App Store to greater competition, particularly for app developers. The 9th U.S. Circuit Court of Appeals determined that Apple failed to justify why the provisions should be halted during the ongoing appeals process stemming from a lengthy antitrust lawsuit posed by Epic Games, the creator of "Fortnite," according to Channel News Asia and Reuters.

The court's ruling affirms an earlier decision by U.S. District Judge Yvonne Gonzalez Rogers, who found Apple in contempt of a previous injunction for allegedly attempting to circumvent the law. Under the current order, Apple must cease imposing its standard 15% to 30% commission on transactions when developers divert users to external payment systems, forcing changes to its longstanding monetization strategy, as highlighted by India Times and Reuters.

In addition, the court determined that Apple could no longer dictate how developers design payment links or locate them within their apps. This ruling has already led several major developers, including Amazon and Spotify, to modify their applications to bypass Apple's fees, indicating a marked shift in the app economy, according to India Times and Channel News Asia.

Epic Games has openly celebrated the ruling, with CEO Tim Sweeney declaring that "the long national nightmare of the Apple tax is ended," asserting that the decision significantly empowers developers and enhances consumer choice. Conversely, Apple expressed disappointment with the outcome and vowed to continue its legal battle during the appeals process, as emphasized by Reuters and India Times.

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