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Apple loses bid to pause court order letting apps bypass App Store fees
By Josh Sisco and Mark Gurman
Apple Inc. lost its request to pause a court order requiring it to let App Store developers steer users to the web to purchase in-app items without paying a commission.
The ruling Wednesday by a San Francisco-based federal appeals court is the latest setback for the iPhone maker in a long-running fight with Fortnite maker Epic Games Inc. over the dominance of the smartphone software market with its App Store.
Apple sought the pause while it appeals a judge's April ruling that it must comply with a 2021 injunction she issued after finding the company engaged in anticompetitive conduct in violation of California law.
An Apple spokesperson said the company is disappointed with the ruling.
'We'll continue to argue our case during the appeals process,' the spokesperson said. 'As we've said before, we strongly disagree with the district court's opinion. Our goal is to ensure the App Store remains an incredible opportunity for developers and a safe and trusted experience for our users.'
Epic's chief executive officer, Tim Sweeney, hailed the ruling in a social media post on X.
Apple's stay is denied by the 9th Circuit Court. The long national nightmare of the Apple tax is ended. May next week's WWDC be the Apple-led celebration of freedom that developers and users have long deserved. pic.twitter.com/f0A3IAVKNC
— Tim Sweeney (@TimSweeneyEpic) June 4, 2025
The April ruling takes a bite out of the lucrative revenue the App Store generates for Apple. It blocks the company from charging commissions on transactions linked outside the App Store and from controlling the language and app design that developers use to steer their customers to their own websites to make payments.
Apple argued to the appeals court that the ruling by US District Judge Yvonne Gonzalez Rogers in Oakland, California, is causing the company 'grave irreparable harm.' The iPhone maker also contends Gonzalez Rogers erred in concluding it didn't comply with her 2021 injunction.
Following a trial in 2021, Gonzalez Rogers largely sided with Apple, saying that its App Store policies didn't violate federal antitrust law. However, she ordered the company to let developers bypass its in-app payment tool to avoid a commission of up to 30 per cent. The ruling was ultimately upheld by the US Supreme Court last year when it declined to hear appeals in the case.
In response to the 2021 injunction, Apple allowed developers to point users to the web to complete transactions for in-app purchases, but required developers to pay the company a 27 per cent cut of whatever revenue they generated.
Epic and other developers complained about both the new commission as well as a host of restrictions Apple placed on their ability to link out of the App Store, including the design and placement of buttons. Epic accused Apple of flouting the 2021 injunction, leading to the April ruling.
After several weeks of hearings last year and this year, Gonzalez Rogers concluded that Apple 'willfully' violated her injunction four years ago. She also referred the company to federal prosecutors for a possible criminal probe of contempt of court.
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