Core Viewpoint - Apple is seeking to pause a federal appeals court ruling that requires the company to open its App Store to competitors, claiming it could result in "billions" of dollars in annual losses if enforced [1][3]. Group 1: Legal Proceedings - A federal judge found Apple in contempt of a 2021 injunction related to a lawsuit from Epic Games, suggesting potential criminal charges against the company and its executives [1][10]. - The judge's ruling includes a requirement for Apple to cease practices aimed at evading the injunction, such as imposing a new 27% fee on rivals directing customers to make purchases outside the App Store [2][6]. - Apple argues that the court-ordered changes could cost the company "hundreds of millions to billions" of dollars annually, depending on how developers implement them and consumer adoption rates [3]. Group 2: Business Model Impact - The ruling threatens to disrupt Apple's profitable App Store model by allowing competitors like Epic Games, Spotify, and Amazon to direct customers to their own websites for purchases, thereby avoiding Apple's in-app commissions [3][7]. - Apple contends that the judge's order would force the company to provide free access to its products and services, including intellectual property, which it argues is unreasonable [6]. Group 3: Executive Accountability - The judge accused Apple CEO Tim Cook of attempting to circumvent the 2021 injunction and stated that the vice president of finance, Alex Roman, had lied under oath regarding the implementation of the 27% fee [1][10]. - Former Apple senior vice president Phil Schiller had advised against charging a commission on web links, but the current leadership proceeded with the plan [11].
Apple seeks pause on Epic Games contempt ruling that could cost App Store ‘billions'