In a strategic move to safeguard its financial interests, a prominent technology company is attempting to postpone a recent court ruling that mandates it to allow app developers on its platform to direct users to alternative payment systems, thereby bypassing the company’s commission fees.
The firm submitted an urgent request to an appellate court, seeking a temporary suspension of a prior decision that could significantly alter its revenue model.
Last week, a U.S. court ruled in favor of a well-known gaming company in a protracted legal battle, with the presiding judge determining that the tech giant had failed to adhere to a previous order issued in 2021.
This latest ruling compels the company to permit applications on its U.S. platform to incorporate functionalities that redirect users to external payment options, cease collecting commissions on these transactions, and eliminate warning messages that caution users about the risks associated with making purchases outside the company’s ecosystem.
The tech giant is now requesting a stay on the restrictions regarding its ability to charge fees on transactions made through external payment links, as well as any stipulations concerning the wording or positioning of these links.
The company contends that the new ruling is excessive, asserting that it significantly expands the scope of the earlier injunction, which did not originally prohibit the firm from charging fees on non-company payment systems.
It claims to have complied with the court’s 2021 order by allowing developers to link to external payment systems, although it had previously charged a substantial fee on those transactions while also displaying the aforementioned warning messages.
The company argues that the new order would lead to considerable financial losses, stating that these restrictions, which could cost it a significant amount annually, are based on actions that have not been deemed unlawful. Instead, they were imposed as a punitive measure for alleged non-compliance with an earlier injunction that the company believes is invalid.
Without a stay, the company warns that these unprecedented intrusions into its business operations could result in severe and irreparable damage.
The gaming company responded to the tech giant’s motion, labeling it a desperate attempt to stifle competition and impose excessive fees that ultimately harm consumers and developers alike.
Earlier this week, the tech giant filed an appeal against the court’s decision, asserting that it has already begun to comply with the ruling by allowing developers to link users to complete transactions outside of its app ecosystem. Various companies have already updated their applications to facilitate this new payment process.
This article has been updated to include the gaming company’s response.