Apple loses bid for emergency block on App Store payment changes


Apple suffered another legal blow last week (June 4) when a US federal appeals court rejected an emergency application to suspend a judicial order forcing changes to its App Store payment system.

The development marks the latest in a legal battle that began with Fortnite maker Epic Games’ 2020 lawsuit challenging Apple‘s app distribution policies.

On April 30, US District Judge Yvonne Gonzalez Rogers ruled that Apple violated a 2021 injunction that prohibited it from imposing anticompetitive pricing.

The judge had ordered Apple to stop charging 27% commission on external sales made through apps.

Following the court decision, Epic Games CEO Tim Sweeney announced on X that Epic Games would bring Fortnite back to the US App Store.

The ruling also enabled Spotify to update its iOS app in the US, allowing users to use other payment options beyond Apple Pay. Previously, apps were barred from mentioning alternative payment options.

The update boosted conversions from free to Premium subscriptions, Spotify said in late May.

Apple sought to appeal the April 30 decision, but the Ninth Circuit Court of Appeals in San Francisco rejected its appeal last week.

“After reviewing the relevant factors, we are not persuaded that a stay is appropriate.”

United States Court of Appeals for the Ninth Circuit

In a two-page decision, a panel of judges wrote: “Apple ‘bears the burden of showing that the circumstances justify an exercise of [our] discretion. After reviewing the relevant factors, we are not persuaded that a stay is appropriate.”

In response, an Apple spokesperson indicated that the company will continue pursuing its appeal. The spokesperson told news outlets including TechCrunch: “We are disappointed with the decision not to stay the district court’s order, and we’ll continue to argue our case during the appeals process.”

“As we’ve said before, we strongly disagree with the district court’s opinion. Our goal is to ensure the App Store remains an incredible opportunity for developers and a safe and trusted experience for our users.”

“We are disappointed with the decision not to stay the district court’s order, and we’ll continue to argue our case during the appeals process.”

Apple spokesperson

Epic Games CEO Tim Sweeney welcomed the latest ruling, writing on X: “Apple’s stay is denied by the 9th Circuit Court. The long national nightmare of the Apple tax is ended.

“May next week’s WWDC be the Apple-led celebration of freedom that developers and users have long deserved.”

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