Apple is seeking an emergency pause on a recent court order that could force major changes to its App Store business, warning that the mandated overhaul could cost the company "hundreds of millions to billions" of dollars annually. The move comes after U.S. District Judge Yvonne Gonzalez Rogers held Apple in contempt for violating a 2021 injunction in its legal battle with Epic Games.
In a filing late Wednesday, Apple asked the Ninth Circuit Court of Appeals for a stay of the ruling, which compels the iPhone maker to stop charging commissions on transactions completed via external links embedded within iOS apps. The court also barred Apple from setting conditions on how developers design or place those links, a shift Apple claims "dramatically expands" the scope of the original judgment.
"This is the latest chapter in Epic's largely unsuccessful effort to use competition law to change how Apple runs the App Store," the company said. Apple argues that the ruling imposes "extraordinary intrusions" on its business and is "punitive" in nature. Apple's lawyers say civil contempt sanctions cannot be used to punish but only to coerce compliance.
The underlying case began in 2020 when Epic challenged Apple's control over in-app purchases and its 30% commission fee. In 2021, Judge Rogers ruled that Apple must allow developers to direct users to external payment options. Apple initially responded by allowing links but introduced new fees - charging a 27% commission - and deployed pop-up warnings known as "scare screens" that discouraged users from using non-Apple systems.
Last month, Judge Rogers found Apple had not complied in good faith and referred the company for potential criminal contempt, stating that a vice president "outright lied" in court about when and why Apple decided to impose the 27% fee. The judge cited internal discussions involving CEO Tim Cook as evidence of deliberate intent.
Apple's emergency motion seeks to halt enforcement of the new order while its appeal proceeds. The company insists that allowing developers like Spotify and Amazon to bypass its payment systems entirely will inflict "grave irreparable harm." Both firms have already updated their apps to include external payment links. Amazon's Kindle app, for example, now features a "Get Book" button that redirects to the company's website.
Epic Games, which plans to release tools to help developers implement external payment options, has hailed the ruling as a victory. "This forces Apple to compete," said Epic CEO Tim Sweeney. "This is what we wanted all along."
Judge Rogers' order prohibits Apple from charging any fee on purchases made outside its platform and limits how it can influence users' behavior through app design. Apple said this type of restriction has never before been deemed unlawful and warned it sets a troubling precedent.
Apple has already filed a formal appeal and, according to CEO Tim Cook, is in compliance with the current ruling. "We've complied with the court's order and we're going to appeal," Cook told investors during last week's earnings call.
