Apple is urging a US appeals court to halt a recent ruling by District Judge Yvonne Gonzalez Rogers in a case that could reshape the future of its multi-billion dollar App Store.
Last week, Judge Rogers determined that Apple had willfully violated a 2021 court order stemming from its legal battle with Epic Games, the creator of Fortnite. That original order required Apple to curb anti-competitive practices and allow alternative payment methods within the App Store ecosystem.
In a sharply worded response, Apple called the judge’s latest finding “extraordinary,” arguing in court filings that the ruling unlawfully restricts the company’s ability to manage its own platform.
“A federal court cannot mandate that Apple provide indefinite free access to its products and services, including its proprietary technologies,” Apple’s legal team stated.
The iPhone maker contends that the court’s order compromises its control over essential aspects of its business model and App Store operations.
#1Case Origins
Both rulings by Judge Yvonne Gonzalez Rogers originate from an antitrust lawsuit filed by Epic Games.
In 2020, Epic alleged that Apple held an illegal monopoly through its App Store, which charged developers commissions ranging from 15% to 30% on in-app purchases.
While the judge dismissed the monopoly accusation, she concluded that Apple violated California competition laws by preventing developers from offering alternative payment options to users.
She ordered Apple to implement changes that would allow developers to guide users toward lower-cost payment methods outside the Apple ecosystem.
However, in 2023, Epic claimed Apple had not complied, accusing the company of introducing a new fee structure for developers instead.
In a contempt order issued last week, Judge Gonzalez Rogers ruled that Apple continued to restrict competition. She pointed to internal Apple documents as evidence that the company had intentionally defied her 2021 injunction.
#2Substantial Sums
On Wednesday, Apple urged an appeals court to intervene, including by lifting a restriction that currently prevents it from charging developers fees on purchases made outside the App Store.
Apple argued that such restrictions “will cost Apple substantial sums annually” and are based on conduct that has not been legally determined to be unlawful.
"Instead, they were imposed as punishment for Apple’s alleged non-compliance with a prior state-law injunction, which Apple contends is invalid," the company wrote.
Epic Games responded by asserting that Judge Gonzalez Rogers' recent contempt order is already benefiting consumers.
“Apple is now facing real competition as developers roll out updated apps featuring better payment options, improved pricing, and expanded consumer choice,” Epic stated in a post on X.
Epic dismissed Apple’s appeal as “a last-ditch effort to suppress competition and impose excessive junk fees on both consumers and developers.”
Epic also noted that it is actively preparing to relaunch Fortnite on iPhones and iPads.
Apple originally removed Fortnite from the App Store in 2020 after Epic integrated its own in-app payment system—sparking the ongoing legal battle.
Apple’s court filing did not directly address Judge Gonzalez Rogers' recent pointed criticisms of company leadership.
In her latest order, the judge noted that CEO Tim Cook disregarded executive Phillip Schiller’s recommendation to comply with the injunction, and instead followed advice from then-CFO Luca Maestri not to do so.
“Cook chose poorly,” she wrote.
According to the judge, internal Apple communications revealed “that Apple knew exactly what it was doing, and at every turn, selected the most anticompetitive course of action.”
Judge Gonzalez Rogers also stated that she would refer the case to the U.S. Attorney for the Northern District of California to consider whether a criminal contempt proceeding against Apple is warranted.
Apple said last week that it would comply with the court’s order while pursuing its appeal.
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