Apple Faces Setback in Legal Clash with Epic Games Over App Store Commission Changes
ICARO Media Group
### Apple Fails to Block App Store Changes Amid Legal Clash with Epic Games
In a significant development, Apple has faced a setback as a panel of judges from the U.S. Court of Appeals for the Ninth Circuit denied the company’s emergency application. This application sought to halt changes to its App Store, a result of Apple's legal confrontation with Epic Games. The court's decision means that Apple can no longer impose commissions on payment links within apps nor dictate how developers present these links.
The ruling has notable financial implications for Apple, as it will no longer collect its standard 15% to 30% commission on certain in-app payments. Companies like Amazon and Spotify have already adjusted their apps to circumvent these commissions, allowing users to make purchases directly on their own websites. For instance, the Amazon Kindle app for iPhone now includes a prominent "Get Book" button that redirects users to Amazon.com.
Apple’s request to pause an order from U.S. District Judge Yvonne Gonzalez Rogers, which aimed to eliminate the company's commission on external payment links and restrictions on how these links appear, was central to this court proceedings. Judge Rogers' initial ruling, which was confirmed last month, stated that Apple must adhere to these changes immediately. Apple warned that adhering to this order could result in substantial financial losses for the company.
Despite Apple's arguments for a stay, the panel was not convinced. In their order, they noted that the company bears the burden of demonstrating that the circumstances justify such an exercise of discretion. "After reviewing the relevant factors, we are not persuaded that a stay is appropriate," the order stated.
The origins of this conflict date back to 2021 when Epic Games first challenged Apple’s policies. Judge Rogers had already ruled that Apple needed to make limited adjustments to its link-out policy. However, in April of this year, she expanded her ruling, accusing Apple of misleading the court and violating the original order.
An Apple spokesperson expressed disappointment with the recent decision, emphasizing the company's intention to continue its appeals process. "We strongly disagree with the district court's opinion," the spokesperson said, underscoring that Apple's objective remains to maintain the App Store as a valuable opportunity for developers and a trusted environment for users.
In contrast, Epic Games CEO Tim Sweeney celebrated the decision, stating on social media, "The long national nightmare of the Apple tax is ended."
As Apple gears up for further legal battles, the ruling introduces a new dynamic in the economics of app development in the U.S., potentially signaling a shift in the balance of power within the tech industry.