Court Reverses Stay on Epic Games Ruling Against Apple

The U.S. Court of Appeals for the Ninth Circuit has reversed its earlier decision to pause enforcement of a ruling that requires Apple to loosen certain App Store rules. The reversal comes as Apple seeks Supreme Court review of the underlying decision. Earlier this month, the appeals court had granted Apple a stay of the mandate, temporarily halting the requirement while the company pursued further appeal. Epic Games filed two motions in response, arguing that Apple’s request was a delay tactic and that the company had not shown sufficient cause for the stay. In its decision reversing the stay, the court said it was persuaded by Epic’s arguments that Apple had not demonstrated the Supreme Court was likely to take up the case or overturn the ruling. The court also agreed with Epic that Apple had failed to show good cause to sustain the prior stay order under Federal Rule of Appellate Procedure 41(d). The rule requires that a party seeking to stay a mandate pending a petition for certiorari must show that the petition would present a substantial question and that there is good cause for a stay. The court noted that even if the Supreme Court agrees with Apple, further proceedings on remand would still be necessary, particularly regarding the question of commission rates. Epic Games CEO Tim Sweeney posted on X following the decision, repeating the company’s claim that Apple’s fees on purchases outside the App Store hurt consumers and developers. The ruling marks the latest development in the prolonged legal battle between the two companies over App Store payment policies.