Court rejects Apple's appeal against Epic victory in the USA
Since May, Apple has had to allow App Store applications to set free sales links. An attempt to stop this initially failed.
App store icon against a cloudy background.
(Image: Tada Images / Shutterstock)
Apple's attempts to stop a court ruling in the USA that gives developers in the App Store the right to earn money commission-free outside the iPhone company's infrastructure have failed for now. The so-called anti-steering measures must be maintained while the proceedings are still ongoing. An emergency motion filed by Apple was rejected by the US Court of Appeals for the Ninth Circuit on Wednesday.
“Fortnite”, Spotify and other apps now earn via the web
At the end of April, Judge Yvonne Gonzalez Rogers ruled that Apple could not prohibit Epic Games and other app providers from placing links on the web to offer in-app purchases. The company recently wanted up to 27 percent commission for this as well. Instead, Apple has to release the links and is not allowed to send warning dialogs in advance. As a result, Spotify and Epic Games themselves submitted their apps with corresponding payment links. Spotify did so immediately, while Epic Games' “Fortnite” only did so after a further – rather rude – request from the court.
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Apple appealed against the decision and wanted the Court of Appeal to suspend Gonzalez Rogers' decision for now, as the company was threatened with high revenue losses. However, the judges did not see this as necessary. In order for the order to remain stayed until the end of the proceedings, Apple would have had to prove that the appeal was likely to succeed – and that the company would suffer irreparable harm as a result of the decision. After reviewing the relevant factors, the Court of Appeal did not see it that way.
Apple sees billions in costs, court does not follow
Apple claims, among other things, that the decision could cost the company “several hundred million to billions of US dollars annually”. It therefore represents “irreparable harm” (Epic Games v. Apple, United States Court of Appeals for the Ninth Circuit, case no. 25-2935). The injunctions were also unlawful: Apple could not be prohibited from charging a commission on linked purchases on the web – as such a requirement was not part of the original injunction. Furthermore, the company saw its rights to freedom of expression violated.
“Statements by competing developers” now had to be disseminated, i.e., links with any text in the submitted iPhone apps. This violates the First Amendment of the US Constitution. For example, Apple would have to tolerate app providers writing “derogatory statements” about Apple's long-prescribed in-app purchase interface in their apps. The proceedings are now continuing, while Apple must tolerate the link option.
An Apple spokesperson told Mac & i that the company was "disappointed with the decision not to stay the district court’s order". Apple will now "continue to argue our case" during the appeals process, they stated. "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."
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