Apple Challenges Judge’s Ruling Over App Store Restrictions, Says It Could Lose Big

Apple is asking a higher court to stop a recent ruling by a US judge that could seriously impact how the company runs its App Store.

The issue goes back to a case brought by Epic Games, the creator of Fortnite. In 2021, Judge Yvonne Gonzalez Rogers told Apple to stop blocking app developers from offering cheaper payment options outside the App Store. But last week, she ruled that Apple didn’t follow that order and was still limiting competition, BBC reported. 

Apple disagreed strongly, calling the ruling “extraordinary” and saying it unfairly forces the company to give away access to its services and intellectual property. Apple also claimed that the court should not be allowed to take control of how it runs its business.

The original legal battle started in 2020 when Epic Games accused Apple of having too much control over the App Store and charging high fees — 15 percent to 30 percent — on in-app purchases. While the judge didn’t agree Apple had a monopoly, she did find the company was violating California’s competition laws by stopping developers from offering outside payment options.

In response to the 2021 ruling, Apple made changes, but Epic claimed they didn’t go far enough. The company said Apple simply introduced new fees in a different form, making it just as hard for developers to avoid App Store charges.

Judge Gonzalez Rogers agreed with Epic last week, saying Apple knowingly avoided following her order. She said internal emails showed Apple executives, including CEO Tim Cook, chose to ignore suggestions to comply with the court’s demand.

Now, Apple wants the appeals court to step in and pause the ruling. It argues that stopping them from charging developers for purchases made outside the App Store could cost the company a lot of money, even though their actions weren’t proven illegal.

Although Apple has said it will follow the judge’s latest order while it appeals, the company insists the court went too far in trying to change its business operations.