Apple wins delay in Monopoly case, allowing App Store rules to remain in place for now

As part of an antitrust dispute between a technology company and Epic Games Inc, Apple Inc. won a grace from the US Court of Appeals on Wednesday by making changes to the App Store ordered by a federal judge.  The US Ninth Court of Appeals has ordered iPhone makers to postpone the implementation of a federal order that allows developers to communicate with users in the app using alternative payment methods outside the app store.

The order means Apple could be delayed perhaps for years, making the most significant change to the way it manages a lucrative app store as the company and Epic seek broader appeal.  “Apple claims that Epic Games, Inc. The court of appeals said in its ruling that “it failed to prove that Apple’s actions violated antitrust laws, but it showed that the same actions violated California’s unfair competition laws.”

In late November, Apple argued in an appeals court that immediate compliance with the original ruling of US District Judge Yvonne Gonzalez Rogers would harm “millions of contributors on both sides of the app store.”

In early November, Judge Gonzalez Rogers rejected Apple’s request to delay the injunction. The case occurred in August 2020, when Epic sued Apple, alleging that the iPhone maker had an unfair monopoly over the distribution of software on its devices and forced developers to use an in-app payment system that charged a 30% fee. On appeal, Judge Gonzalez Rogers said the proposed suspension would delay the implementation of the changes by several years. Apple had faced a Dec. 9 deadline to implement the changes. In the initial case, Judge Gonzalez Rogers ruled mostly in favor of Apple, except for an injunction against the anti-government provisions of the App Store Rules.

Apple said, “We are continuing to evolve the App Store to further improve the App Store for our users and our very talented community of iOS developers.” “We are concerned that these changes will create new privacy and security risks and disrupt what customers like about the App Store. We would like to thank the Court for granting us an extension while the appeals process is ongoing.”