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News

Antitrust & Trade Reg.,
Civil Litigation,
Technology

Oct. 11, 2021

Apple seeks to appeal order hitting its core App Store business

The appeal is in response to a federal judge’s order in a high profile legal battle waged by Epic Games, creator of the online game Fortnite. U.S. District Judge Yvonne Gonzalez Rogers found that Apple is not a monopolist but ordered it to loosen its control over the App Store.

Apple seeks to appeal order hitting its core App Store business

Apple moved for a federal appeals court to toss a ruling forcing it to change its App Store policies for developers by allowing them to direct users to avenues that allow them to bypass a commission on sales.

The appeal is in response to a federal judge's order in a high profile legal battle waged by Epic Games, creator of the online game Fortnite. U.S. District Judge Yvonne Gonzalez Rogers found that Apple is not a monopolist but ordered it to loosen its control over the App Store.

The tech giant asked Gonzalez Rogers to delay the ruling until after its appeal is heard by the 9th U.S. Circuit Court of Appeals.

Rushing to implement the court order will "upset the careful balance between developers and customers provided by the App Store, and would irreparably harm both Apple and consumers," wrote Apple attorney Mark A. Perry, a partner at Gibson, Dunn & Crutcher LLP.

"The requested stay will allow Apple to protect consumers and safeguard its platform while the company works through the complex and rapidly evolving legal, technological, and economic issues that any revisions to this guideline would implicate."

The court decision, which presented companies a way to avoid giving Apple a cut of up to 30% on all transactions, was a major blow to one of Apple's core businesses.

Gonzalez Rogers concluded that Apple engaged in anticompetitive conduct by prohibiting developers from pointing users to ways to pay for services and subscriptions outside of the App Store.

Epic Games has already appealed the decision in its antitrust lawsuit.

-- Winston Cho

#364598

Winston Cho

Daily Journal Staff Writer
winston_cho@dailyjournal.com

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