Apple Loses Appeal to Pause App Store Changes in Epic Games Case

Apple has lost its appeal to pause a previous court order requiring them to allow developers to include links to external payment options within their iOS apps, circumventing Apple's commission fees. The 9th US Circuit Court of Appeals rejected Apple's request, meaning the changes Apple was compelled to implement in April must remain in place during the appeals process. This stems from the ongoing legal battle between Apple and Epic Games over App Store policies.

• Multiple sources highlight that developers like Spotify, Amazon (Kindle), and Epic Games (Fortnite) have already begun implementing external payment links, allowing users to bypass Apple's in-app purchase system and associated fees.
• The court order also prevents Apple from restricting the appearance or language used in these external payment links.
• Judge Gonzalez Rogers originally found Apple in contempt for not complying with the original 2021 ruling.

Perspective

• Pro-Developer/Epic Games: This perspective views the court's decision as a victory for developers and consumers, increasing competition and choice while eroding Apple's control over the App Store ecosystem. Epic Games CEO Tim Sweeney celebrated the ruling, declaring "the long national nightmare of the Apple tax is ended" New York Post, Cult of Mac, NBC Chicago.
• Apple's Perspective: Apple maintains that the App Store provides a safe and trusted experience for users and a valuable opportunity for developers. They express disappointment with the court's decision and plan to continue arguing their case during the appeals process New York Post, Neowin, Android Headlines. They argue the ruling blocks them from controlling core business operations and forces them to give free access to their services 9to5Mac.
• Financial Analyst Perspective: While acknowledging a potential 2-3% EPS hit for Apple, some analysts believe the impact is smaller than initially feared and that app developers like Spotify, Match, and Bumble stand to gain from increased margins and user growth Benzinga.