June 4 (Reuters) - Apple ( AAPL ) has failed to persuade
a U.S. appeals court to pause key parts of a federal judge's
order requiring the iPhone maker to immediately open its
lucrative App Store to more competition.
The 9th U.S. Circuit Court of Appeals on Wednesday rejected
Apple's ( AAPL ) request to put the provisions on hold as the tech giant
appeals the judge's order, which came in a long-running
antitrust lawsuit brought by "Fortnite" maker Epic Games.
U.S. District Judge Yvonne Gonzalez Rogers in April found
Apple ( AAPL ) in contempt of an earlier injunction order she
issued in the Epic Games case.
The judge on April 30 ordered Apple ( AAPL ) to end several practices
that she said were designed to circumvent the injunction,
including a new 27% fee Apple ( AAPL ) imposed on app developers when its
customers complete an app purchase outside the App Store.
The court also prohibited Apple ( AAPL ) from restricting where
developers place links to make purchases outside of an app.
In its emergency appeal, Apple ( AAPL ) said the ruling blocked the
company from "exercising control over core aspects of its
business operations" and forced it to give away free access to
its services.
Epic Games countered that Apple ( AAPL ) was trying to continue
evading competition and collecting fees that the judge had
barred.
Apple ( AAPL ) has faced a "surge of genuine competition" since
Gonzalez Rogers issued her April injunction, as developers
updated apps with "better payment methods, better deals, and
better consumer choice," Epic said.
Epic Games sued Apple ( AAPL ) in 2020 to loosen its control over
transactions in applications that use its iOS operating system
and how apps are distributed to consumers.
Apple ( AAPL ) mostly won the case, but Gonzalez Rogers in 2021 said
Apple ( AAPL ) must allow developers to more easily steer consumers to
potentially cheaper non-Apple ( AAPL ) payment options.
Apple ( AAPL ) defied that court order to maintain a revenue stream
worth billions of dollars, Gonzalez Rogers wrote in April.
She also said Apple ( AAPL ) had misled the court about its efforts
to comply with her injunction and referred the company and one
of its executives to federal prosecutors for a possible criminal
contempt investigation.