The App Store logo is seen next to the Epic Games Store logo on two screens. Epic, maker of the popular game “Fortnite,” wants to sell digital items in its apps without giving a cut of the purchase price to Apple.
Fabian Summer | picture alliance | Getty Images
Apple was dealt a blow in the U.S. Court of Appeals for the Ninth Circuit on Wednesday, as a panel of judges denied the company’s emergency application to halt changes to its App Store that resulted from the company’s legal battle with Epic Games.
Apple “bears the burden of showing that the circumstances justify an exercise of [our] discretion,” according to the order. “After reviewing the relevant factors, we are not persuaded that a stay is appropriate.”
Last month, the iPhone maker asked the appeals court to pause an order from U.S. District Judge Yvonne Gonzalez Rogers that said that Apple could no longer charge a commission on payment links inside its apps nor tell developers how the links should look.
Apple said the ruling from the judge could cost the company “substantial sums.”
The ruling has already shifted the economics of app development in the U.S. Developers including Amazon and Spotify have been able to update their apps to avoid Apple’s 15% to 30% commission and direct customers to their own websites for payment.
Amazon’s iPhone Kindle app now shows an orange “Get Book” button that links to Amazon.com.
The rejection of Apple’s stay signals that recent changes under the order can stay in place. Apple CEO Tim Cook has said that Apple would appeal Rogers’ ruling.
In April, Rogers found that Apple had violated her original court order from the Epic Games trial, which was originally decided in 2021, that forced Apple to make limited changes to its link-out policy. She issued a new, more expansive ruling, that told Apple to immediately stop imposing its commissions.
The judge also alleged that Apple had misled the court.
“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,” an Apple spokesperson said in a statement. “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.”
CNBC has reached out to Epic Games for comment.
