In a blow to Apple, a three-judge appeals panel rejected the tech giant’s request to delay an April 30th court ruling that forbids the company from levying fees on in-app iPhone transactions processed outside its once-exclusive payment system.
The decision, issued late Thursday in a two-page ruling, threatens to redirect billions of dollars in revenue away from Apple as it seeks to overturn the order restricting its e-commerce commissions within iPhone apps.
The big picture: The setback comes as U.S. District Judge Yvonne Gonzalez-Rogers handed down the order, which also held Apple in civil contempt and suggested a possible criminal investigation into one of its executives accused of perjury during testimony in her Oakland courtroom.
- The ruling stems from an ongoing legal battle initiated by video game maker Epic Games nearly five years ago, alleging Apple had established a monopolistic scheme in its App Store.
- Central to the antitrust case were the 15 to 30 percent commissions Apple collected from in-app transactions under a system that prohibited app developers from offering alternative payment methods.
- Despite Apple’s efforts to challenge Gonzalez-Rogers’ ruling in the Ninth Circuit Court of Appeals, the order blocking Apple’s commissions on certain in-app transactions will remain in effect, impacting the company’s profits.
Flashback: Gonzalez-Rogers, who initially sided with Apple in a 2021 ruling, later mandated the company to allow apps to include links to alternative payment systems. Apple complied by imposing commissions ranging from 12 to 27 percent, prompting Epic to seek a contempt ruling against Apple.
