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Apple says Epic Games contempt ruling could cost 'substantial sums'
CNBC· 2025-05-08 02:32
Core Viewpoint - Apple is seeking a court stay on a recent ruling that impacts its ability to charge commissions on in-app transactions, which could significantly affect its revenue model and the economics of app development [1][3]. Group 1: Legal Developments - A U.S. District Judge ruled that Apple must stop imposing commissions on purchases made through web links in its apps, which is a more expansive interpretation of previous court orders [2]. - Apple is appealing the ruling and claims that the required changes could cost the company "hundreds of millions to billions" of dollars annually [3][4]. - The judge has made a criminal referral, stating that Apple misled the court regarding its commission policies, with accusations that a company vice president "outright lied" about the decision-making process [6]. Group 2: Impact on App Developers - The ruling allows developers like Amazon and Spotify to update their apps to bypass Apple's commissions by directing customers to their own websites for payments [4]. - Epic Games plans to introduce new software to facilitate app developers linking to their websites for payments, which is seen as a move to increase competition against Apple [5]. Group 3: Apple's Response - Apple argues that the ruling is punitive and that civil contempt sanctions should only compel compliance, not punish non-compliance [7]. - The company maintains that it has complied with the court's orders and intends to appeal the contempt ruling [7].