Apple Appeals Court-Mandated App Store Payment Rule Changes

As promised, Apple is appealing the contempt of court decision it was hit with last week in its ongoing legal fight with Epic Games. Apple today filed a notice of appeal with the U.S. District Court in Northern California, in the hopes that the Cupertino company might be able to walk back changes that have required it to allow developers to add links to external payment methods to apps.

Last Wednesday, Apple was handed a scathing order to immediately walk back all of its anti-steering policies in the United States. Apple was found to be in violation of a 2021 injunction that required it to let developers direct customers to third-party purchase options outside of apps.

The order initially came from the Apple vs. ‌Epic Games‌ lawsuit that primarily went in Apple's favor. Apple was found not to have a monopoly and largely won the case, but part of the ruling forced Apple to change some of its App Store rules. Apple did make updates, but it only allowed developers a single link to an external website in apps, and Apple also collected a 12 to 27 percent fee from purchases made on a website through an app.

The judge was not at all happy with how Apple decided to comply with the order, and in her ruling, she said that Apple picked the most anticompetitive option at every turn. As a result, she provided Apple with a detailed list of tweaks to make, and ordered Apple to implement them immediately. "Apple's continued attempts to interfere with competition will not be tolerated," read the order.

Apple changed its App Store rules last Thursday. Apple cannot prevent developers from adding links or buttons that direct customers to make purchases outside of the ‌App Store‌, nor can it dictate how those buttons or links look. Apple also can't collect any fees for purchases made using external links in apps.

In a statement, Apple said that it strongly disagrees with the decision, but Apple was not able to hold off on implementing the new rules during the appeals process, so U.S. developers are able to direct customers to websites to make purchases as of now.

Spotify, Patreon, and others have already submitted app updates with links to make purchases on the web.

Except for confirming Apple's plan to appeal, the notice contains little info, so it's not yet clear what arguments Apple will present to try to convince the appeals court that the judge overseeing the case made a mistake. Apple will need to submit a brief with its legal argument, then ‌Epic Games‌ will have a chance to respond, after which Apple will be able to file a second brief. There could also be oral arguments, so we are looking at several more months before a final decision is made.