Apple has requested a federal appeals court to temporarily suspend a district judge’s ruling that mandates increased competition within the Apple App Store. The company argues that failing to halt the ruling would result in irreparable damage to its operations.
This plea comes in response to a district court’s previous ruling that instructed Apple to lift certain restrictions on app developers. This ruling was enacted after the court found Apple in contempt of a prior order linked to a 2020 antitrust lawsuit filed by Epic Games, the company behind the popular video game Fortnite.
One contentious aspect of the ruling includes a 27% fee imposed by Apple on developers for transactions made outside the App Store, alongside limitations on how developers can promote these alternative purchasing options to users.
In a filing submitted on Wednesday to the Ninth Circuit Court of Appeals, Apple contended that the district court’s order “permanently precludes Apple from exercising control over core aspects of its business operations, including charging for the use of its property and safeguarding the integrity of its platforms and in-app purchase systems.”
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Apple’s filing further argued that “these restrictions, which will cost Apple substantial sums annually, are based on conduct that has never been adjudicated to be (and is not) unlawful; rather, they were imposed to punish Apple for purported non-compliance with an earlier state-law injunction that is itself invalid.”
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In response, Epic Games criticized Apple’s motion as a desperate attempt to impede competition and impose exorbitant fees that ultimately harm consumers and developers alike.
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Epic’s statement emphasized that since the district court’s contempt ruling, Apple has seen increased competition, with developers enhancing their apps to offer improved payment options and benefits to consumers. “We are full speed ahead to bring Fortnite to iPhones and iPads in the U.S. this week,” Epic added.
U.S. District Judge Yvonne Gonzalez Rogers remarked in her ruling that Apple aimed to preserve a revenue stream amounting to billions while defying the court’s earlier injunctions.
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She further noted that Apple misled the court regarding its compliance efforts and has referred the company along with one of its executives to federal prosecutors for a potential criminal contempt inquiry.
Reuters contributed to this report.
