Apple loses appeal to pause app store competition order in Epic Games case

Apple on Wednesday lost a bid to pause key parts of a judge’s order that requires the company to allow more competition in its App Store.

A U.S. appeals court declined Apple’s request to delay the ruling as it continues to appeal.

The order came in an antitrust lawsuit filed by Epic Games, the maker of “Fortnite.” U.S. District Judge Yvonne Gonzalez Rogers had found Apple in contempt of an earlier order from the same case.

The judge said Apple tried to avoid following her instructions by setting new rules, including a 27% fee on developers for purchases made outside the App Store.

In April, the judge ordered Apple to stop practices that limited where developers could direct users to buy products outside their apps. She also said Apple had misled the court and referred the company and one of its executives to federal prosecutors for possible criminal contempt.

Apple said it was disappointed with the appeals court decision and would keep pressing its case. The company argued in its emergency appeal that the ruling restricted its ability to manage its own business and forced it to give away services for free.

Epic Games said Apple was trying to avoid competition and keep collecting fees that were no longer allowed. It said that since the court’s April order, developers had begun offering more payment options and better deals for consumers.

Epic sued Apple in 2020 over how the company handles in-app purchases and distributes apps on iPhones. While Apple won most parts of the case, the judge ruled in 2021 that it must let developers guide users to outside payment methods.

The appeals court decision means Apple must now comply with the order while the broader case continues.