Apple Inc. AAPL has expressed apprehension over the potential financial consequences of a contempt ruling in favor of Epic Games. The tech giant has warned that this ruling could lead to “substantial” financial losses.
What Happened: Apple is concerned about the financial implications of the recent court ruling, hence, it is seeking a stay on the order. The company stated that the ruling could cost it "hundreds of millions to billions" of dollars on an annual basis, CNBC reported.
Judge Rogers’ new ruling broadens earlier decisions by ordering the Tim Cook-led company to immediately stop charging commissions on iPhone app purchases made through web links within apps, along with other changes.
In reaction to the contempt ruling, Epic Games CEO Tim Sweeney suggested a peace deal. He stated that Epic Games would reintroduce Fortnite to the App Store and abandon all litigation if Apple relaxed its App Store rules.
On Wednesday, Sweeney stated that battling Apple over the past five years cost the company over $1 billion — but he believes it was worth it, reported Business Insider.
Why It Matters: The ruling came in the wake of a U.S. court order that found Apple Inc. in violation of an injunction against anti-steering practices. Following this, Epic Games, backed by Tencent Holdings TCEHY, proposed to bring Fortnite back to the App Store, provided Apple met certain conditions.
Furthermore, a federal court’s decision to slash Apple Inc.’s 27% commission on alternative in-app payments was seen as a significant victory for Epic and a rare moment of leverage for developers.
This ruling is a critical juncture in the ongoing legal feud between Apple and Epic Games. The potential financial impact on Apple underscores the gravity of the situation and the possible implications for the company’s profitability.
Besides, the reintroduction of Fortnite to the App Store could also have significant implications for the gaming industry and mobile app market.
Price Action: Apple shares have declined 19.52% year-to-date in 2025 but are still up 7.39% over the past 12 months. On Wednesday, the stock slipped 1.14%, closing at $196.25, according to Benzinga Pro.
In Benzinga Edge’s Stock Rankings, Apple earns a growth score of 66.38% and a momentum score of 46.48%. Click here to see how it compares to other top tech stocks.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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