Apple Vs Epic Games: Court Denies Appeal, App Store Must Allow External Payments

Carlos Blanco
Apple Vs Epic Games Court Denies Appeal

Apple Vs Epic Games:

Apple suffered a setback on Wednesday when a panel of judges in the U.S. Court of Appeals for the Ninth Circuit rejected the company’s urgent request to stop modifications to its App Store that were the consequence of its legal dispute with Epic Games.

The order states that it is Apple’s responsibility to demonstrate that the situation warrants the use of [our] discretion. “After considering all the pertinent information, we are not convinced that a stay is necessary.”

The iPhone manufacturer requested last month that the appeals court halt a ruling by U.S. District Judge Yvonne Gonzalez Rogers that prohibited Apple from charging a commission on payment links within its apps and from dictating to developers how those links should appear.

Apple stated that the business may have to pay “substantial sums” as a result of the judge’s decision. 

The company argues that it provides developers with a valuable platform and a secure user experience. In a statement shared with 9to5Mac, an Apple spokesperson said, ‘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.’

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‘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,’ the tech company’s spokesperson added.

Apple Vs Epic Games: Court Denies Appeal, App Store Must Allow External Payments
Apple Vs Epic Games Court Denies Appeal, App Store Must Allow External Payments

Epic’s 2020 lawsuit, which questioned Apple’s control over app distribution and transactions, is the source of this legal disagreement. The presiding court ordered Apple to allow developers to refer clients to other payment methods, even though the corporation won the majority of the first proceedings.

Apple’s attempt to maintain its revenue by charging a 27% fee

The court found that Apple’s attempt to maintain its revenue by charging a 27% fee on external transactions was in violation of its prior injunction, which led to the emergence of this dispute.

In the continuous struggle for dominance of online marketplaces, this decision represents a turning point. The tech sector is keeping a careful eye on the ongoing legal proceedings to see if this ruling will change the dynamic between platform owners and developers, which will ultimately affect how we access and purchase apps.

Epic Games founder and chief executive Tim Sweeney said in a post on X after the appeals court ruling that the “long national nightmare of the Apple tax has ended.”

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In its emergency appeal, Apple said the ruling blocked the company from “exercising control over core aspects of its business operations” and forced it to give free access to its services.

Epic Games countered that Apple was trying to continue evading competition

Epic Games countered that Apple was trying to continue evading competition and collecting fees that the judge had barred.

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Apple has faced a “surge of genuine competition” since Gonzalez Rogers issued her April injunction, as developers updated apps with “better payment methods, better deals, and better consumer choice,” Epic said.

Epic Games sued Apple in 2020 to loosen its control over transactions in applications that use its iOS operating system and how apps are distributed to consumers.

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