In a significant legal development, the U.S. 9th Circuit Court of Appeals has denied Apple’s request to pause the enforcement of a federal court order mandating substantial changes to its App Store operations. This decision stems from the ongoing antitrust litigation initiated by Epic Games, the creator of Fortnite, challenging Apple’s control over app distribution and in-app purchases.
Background of the Legal Dispute
The conflict between Apple and Epic Games began in 2020 when Epic introduced a direct payment system within its Fortnite app, circumventing Apple’s in-app purchase mechanism, which typically garners a 30% commission. Apple responded by removing Fortnite from the App Store, prompting Epic to file a lawsuit alleging that Apple’s practices violated antitrust laws by monopolizing app distribution and payment processes on iOS devices.
In 2021, U.S. District Judge Yvonne Gonzalez Rogers ruled that while Apple’s App Store policies did not constitute a monopoly under federal antitrust laws, the company was in violation of California’s Unfair Competition Law. The court ordered Apple to allow developers to inform users about alternative payment methods and to include links directing users outside the App Store for purchases.
Apple’s Non-Compliance and Subsequent Contempt Ruling
Despite the court’s directive, Apple implemented measures that were perceived as attempts to circumvent the order. Notably, the company introduced a 27% fee on purchases made outside the App Store and imposed restrictions on how developers could communicate alternative payment options to users. These actions led Judge Gonzalez Rogers to find Apple in contempt of court in April 2025, stating that the company had thwarted the injunction’s goals by continuing to impose barriers that stifled competition.
The judge’s ruling emphasized that Apple’s practices, including the new fee structure and communication restrictions, were designed to maintain its control over the app ecosystem and its associated revenue streams. As a result, the court mandated that Apple cease these practices and referred the matter to federal prosecutors for potential criminal contempt proceedings, highlighting the severity of the company’s non-compliance.
Apple’s Appeal and the Court’s Denial
In response to the contempt ruling, Apple filed an emergency appeal with the 9th Circuit Court of Appeals, seeking to delay the enforcement of the mandated changes while the appeal was pending. Apple argued that the injunction interfered with its ability to manage core aspects of its business operations and would result in significant financial losses. The company contended that complying with the order would force it to provide free access to its services and undermine the security and privacy of its users.
However, the appeals court rejected Apple’s request, allowing the lower court’s order to remain in effect during the appeal process. This decision means that Apple must immediately implement the required changes, including allowing developers to direct users to external payment methods without imposing additional fees or restrictions.
Implications for Developers and the App Ecosystem
The court’s decision is a victory for developers who have long criticized Apple’s App Store policies as restrictive and monopolistic. By enabling developers to inform users about and link to alternative payment options, the ruling promotes greater competition and could lead to more favorable pricing for consumers.
Epic Games CEO Tim Sweeney celebrated the decision, stating that it marked the end of the so-called Apple tax. He emphasized that the ruling would foster a more open and competitive app marketplace, benefiting both developers and users.
Apple’s Response and Future Actions
Apple expressed disappointment with the court’s decision and indicated plans to continue its legal battle. The company maintains that its App Store policies are designed to ensure a safe and trusted experience for users and that the imposed changes could compromise these standards. Apple has stated that it will comply with the court’s order while pursuing further appeals to overturn the ruling.
Broader Context and Industry Impact
This legal battle is part of a broader scrutiny of app store practices by major tech companies. Regulators and lawmakers worldwide are examining the control exerted by companies like Apple and Google over app distribution and in-app purchases. The outcome of this case could set a precedent for how digital marketplaces operate and influence future regulations aimed at promoting competition and consumer choice.
Conclusion
The denial of Apple’s appeal to delay the enforcement of App Store reforms represents a pivotal moment in the ongoing debate over the control and fairness of digital marketplaces. As Apple navigates the legal challenges ahead, the tech industry and consumers alike will be watching closely to see how these developments shape the future of app distribution and in-app commerce.
