In a significant setback for Apple, a three-judge panel of the appeals court has declined the company’s bid to delay an injunction issued on April 30. This order prohibits Apple from collecting fees on in-app purchases made through iPhone transactions that bypass its previously exclusive payment system. This decision, announced in a brief ruling on Thursday, may redirect substantial revenue away from Apple as it seeks to challenge the initial judgment that curtails its lucrative commissions on in-app purchases.
Apple’s attempt to stay the ruling followed an earlier determination by U.S. District Judge Yvonne Gonzalez-Rogers. In her pronounced reprimand, she also held Apple in civil contempt and suggested further investigation to ascertain if one of its executives had lied under oath in court proceedings held in Oakland, California. This development marks a continuation of the legal clash that began nearly five years ago, instigated by Epic Games. It centered on allegations that Apple monopolized the pricing within the iPhone’s app store, focusing on the 15% to 30% commissions Apple earns from internal app transactions by restricting alternative payment methods.
While Apple is still devising a strategy to overturn Gonzalez-Rogers’ ruling in the Ninth Circuit Court of Appeals, the injunction halting Apple’s collection of some in-app fees remains in effect, potentially impacting its earnings. Epic Games CEO Tim Sweeney reacted optimistically, declaring on social media, “The long national nightmare of the Apple tax is ended,” following the decision to deny Apple’s motion.
In response, Apple expressed its disappointment over the appeals court’s refusal to grant their stay request. The company remains committed to pursuing its appeal, emphasizing their dedication to maintaining the app store as a vibrant platform for developers while ensuring it continues to provide a secure and trusted user experience.
Despite largely ruling in Apple’s favor in 2021, Judge Gonzalez-Rogers had decreed the company must allow apps to present users with links to alternate payment systems—a directive that eventually survived multiple appeals, including a Supreme Court review in 2024. In compliance, Apple instituted new commission rates ranging between 12% and 27%. Unsettled by this development, Epic Games successfully petitioned Gonzalez-Rogers to consider Apple in contempt over these modifications.
Following extensive hearings that spanned over nine months, culminating this year, Judge Gonzalez-Rogers delivered yet another blow to Apple’s legal stance, upholding her stringent measures against the tech giant.