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Apple Seeks Stay on Ruling in Case Against Epic Games Over In-App Payment Commissions

BusinessApple Seeks Stay on Ruling in Case Against Epic Games Over In-App Payment Commissions

Apple is requesting a court to pause a recent ruling in its ongoing case against Epic Games, which would prevent Apple from charging commissions on in-app transactions that link out for external payments. The case stems from a previous decision in 2021, where U.S. District Judge Yvonne Gonzalez Rogers ordered Apple to make adjustments to its linking policies under California law. In her latest ruling, Judge Rogers found that Apple violated the court’s original decision and ordered Apple to stop imposing commissions on purchases made via web links within apps, among other restrictions.

Apple has filed an emergency motion for a stay, seeking to halt these changes, which it argues would result in substantial financial losses. The company is also asking the court to suspend another part of the ruling that prohibits Apple from restricting how developers place or phrase these external payment links. Apple claims that the changes would cost it billions annually, citing the potential loss of revenue from its App Store.

The motion to pause the ruling is part of Apple’s ongoing legal battle with Epic Games, which has used antitrust arguments to challenge the App Store’s payment policies. Since the ruling, developers such as Amazon and Spotify have begun updating their apps to bypass Apple’s commissions, directing users to make payments on their own websites. For example, Amazon’s Kindle app now features a “Get Book” button that links directly to its website for purchases.

Epic Games has been vocal about its stance, with CEO Tim Sweeney stating that the ruling is what the company sought all along, aiming to force Apple to compete. Epic also plans to roll out new software that would allow app developers to more easily link to external payment systems, bypassing Apple’s platform fees.

Apple’s legal filing contends that developers are already taking advantage of the ruling to bypass in-app payments, potentially reducing consumer choice and harming Apple’s business. Additionally, the court’s decision includes a criminal referral for Apple, accusing the company of misleading the court about its rationale for charging external payment fees. While Apple disputes these claims, it is preparing to appeal the contempt ruling.

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