Apple App Store overhaul

Photo Credit: James Yarema

Apple has requested the US District Court in Northern California pause enforcement of the new App Store rules after its recent loss to Epic Games.

Apple has asked for a stay on the court’s injunction, in an emergency motion filed on Wednesday. That injunction requires the company to allow developers to link to alternative payments methods in their apps. The court’s decision and Apple’s subsequent request are the latest in an ongoing legal battle between the tech giant and Epic Games, stemming from the Fortnite developer challenging the App Store business model alongside Spotify.

Notably, the court sided with Apple on a number of issues, but it ruled that the company’s “anti-steering provisions” violate California’s Unfair Competition Law. Those provisions prevent developers from directing users to alternate, cheaper methods of payment outside the App Store.

Apple said it would comply with injunction, but would still appeal the decision; that appeal was filed earlier in the week. Should the court agree to stay the injunction, Apple would be permitted to maintain the current App Store policy until the court rules on the company’s appeal. Notably, both Epic Games and Spotify have prepped app updates to take advantage of this court ruling.

The company is specifically looking to delay two key mandates: a ban on charging commissions for purchases made through links to external payment methods, and a ban on setting conditions for the style, language, or placement of those links within apps. Ideally for Apple, third-party payment links would be well-hidden over its App Store payments method.

Apple argues these provisions are “punitive,” opening a new legal can of worms and would cause “irreparable” damage by costing the company “hundreds of millions to billions” of dollars annually. Further, Apple claims the district court did not follow due process, improperly engaging in price-setting, in violation of both California law and the US Constitution.

Apple believes it will succeed on appeal and that a stay is necessary to prevent any damage to its business model.

Meanwhile, Epic Games called the motion to stay “a last ditch effort to block competition and extract massive junk fees at the expense of consumers and developers.” The gaming company adds it is “full speed ahead” to bring Fortnite to iPhones and iPads in the US this week.

Other companies to have already adapted their apps to take advantage of the ability to link to out-of-app payment methods since the court’s ruling include Kindle, Patreon, and Spotify.