Apple warns court ruling in App Store case may cost 'substantial sums annually'

Apple requested that a federal appeals court temporarily pause a district judge's ruling requiring it to allow more competition in the Apple App Store, arguing it will suffer irreparable harm if the decision isn't paused.

A district court judge ordered Apple to ease restrictions on app developers after holding Apple in contempt of an order issued in a 2020 antitrust lawsuit that was brought by Epic Games, the creator of the video game Fortnite. 

Among those was a 27% fee that Apple assessed on app developers when customers make a purchase outside the App Store, as well as restricting the location of where developers can display links for users to make purchases outside the app.

The tech giant said in a Wednesday filing with the Ninth Circuit Court of Appeals that the district court's order "permanently precludes Apple from exercising control over core aspects of its business operations, including charging for use of its property and protecting the integrity of its platforms and in-app purchase mechanisms."

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"These restrictions, which will cost Apple substantial sums annually, are based on conduct that has never been adjudicated to be (and is not) unlawful; rather, they were imposed to punish Apple for purported non-compliance with an earlier state-law Injunction that is itself invalid," the company argued in the filing.

Epic Games said in a statement that Apple's motion is a "last ditch effort to block competition and extract massive junk fees at the expense of consumers and developers."

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"Since the contempt of court decision was issued by the District Court, Apple has faced a surge of genuine competition as developers have updated their apps with better payment methods, better deals, and better consumer choice – all benefiting U.S. consumers as the 2021 injunction originally intended," the Epic Games statement continued. "We are full speed ahead to bring Fortnite to iPhones and iPads in the U.S. this week."

U.S. District Judge Yvonne Gonzalez Rogers said in her ruling that "Apple sought to maintain a revenue stream worth billions in direct defiance of this court's injunctions."

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She added that Apple misled the court about its efforts to comply with her injunction and referred the company and one of its executives to federal prosecutors for a possible criminal contempt investigation.

Reuters contributed to this report.