Court Rejects Apple's Emergency Motion to Pause App Store Rule Changes
Apple will not be able to walk back the anti-steering App Store changes it was ordered to implement in May while the legal process plays out, the U.S. Court of Appeals for the Ninth Circuit said today. That means Epic Games, Spotify, Patreon, and others will be able to continue to direct customers to web purchase options that are available outside of the App Store, and Apple won't be able to collect fees on those web purchases.
Shortly after being forced to update its U.S. App Store rules to support external purchase links, Apple filed an emergency motion with the appeals court. Apple wanted to be able to hold off on implementing the new rules until it was able to mount a full appeal, but the appeals court denied the motion.
To be granted a stay, Apple needed to prove that its appeal is likely to succeed and that it would be irreparably injured without a stay, while the court also needed to consider whether the stay would injure other parties and where public interest lies. The court said that after "reviewing the relevant factors" it has not been persuaded that a stay is appropriate.
Apple argued that the original order was "extraordinary" and forced it to "give away free access" to Apple products and services, including intellectual property. Apple said that it should be able to collect commission on external purchase links and control the way those links look, both of which are currently prohibited. Apple claimed that keeping the App Store rules as is will cost it "hundreds of millions to billions" of dollars annually.
The App Store changes that Apple implemented in the U.S. are a result of the ongoing Apple vs. Epic Games legal battle that started in 2020. The judge overseeing the case originally ordered Apple to tweak the App Store rules to allow developers to direct customers to web purchase options instead of using in-app purchases. Apple complied after a multi-year appeals process, but levied 12 to 27 percent fees on developers who opted to do so and implemented strict rules around link styling.
Epic Games protested Apple's implementation, and the judge sided with Epic. In a scathing ruling, Apple was ordered to immediately change its U.S. App Store rules. As of now, Apple is not allowed to charge any fee on purchases that consumers make outside of an app, nor is it allowed to restrict the language or design that developers use for buttons or links to web purchase options.
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