Apple appeals against Epic Games case ruling, could delay changes in App Store for years


Although Apple had called the September ruling in a case filed by Epic Games a “resounding victory” as it had won nine out of the ten claims put forward by the gaming company, it has filed an appeal for the tenth claim that it lost. There is a lot of revenue at stake for the tech giant so it has appealed for a stay so that it can avoid making the necessary changes by December, as it is required to do so.

Epic Games, who had been removed by the App Store for violating its app-store policies, had filed an antitrust case against Apple. It had lost nine claims but won an important one. Judge Gonzalez Rogers said that the company had violated California’s anti-steering rules.

Judge Rogers ordered Apple to make changes in its App Store to let mobile apps developers direct their customers to use not only the App store but also outside payments methods, if they wished to do so. Generally the App Store charges developers to pay a fee between 15 to 30 percent to use the App Store to make payments.

Allowing outside payment gateways, other than the App Store, could make the tech company lose billions in revenue. It might also have to make technical changes. The App Store has reported $53.8 billion in sales last year, at a gross margin of 66 percent. It accounts for roughly 20 percent of the company’s revenue.

The appeal for a stay has several arguments made by the company including security issues. It also says that the implementation of third party payment would cause harm to the company as well as to consumers.

The appeal could be heard in November and if Apple wins a stay, the injunction, currently scheduled to go into effect on December 9, will be delayed until the time when the appeal is heard and a ruling is made and this could potentially take years.

In September, Epic Games had filed an appeal against the ruling earlier in the month as it had been disappointed with the judge’s ruling. Tim Sweeney, CEO tweeted a humorous post on Apple’s appeal on Twitter on October 9.



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