The top brass over at Apple might be fuming after the company was handed a crushing blow in court. A federal judge, Yvonne Gonzalez Rogers, ruled yesterday that the tech giant must stop collecting fees on purchases made outside its ecosystem and remove barriers that discourage users from paying elsewhere.
The ruling ends a five-year legal battle with Epic Games, creator of Fortnite, and deals a major hit to Apple’s nearly $100 billion annual services revenue stream.
This case has been ongoing since 2020, and honestly, the outcome feels seismic. Judge Gonzalez Rogers didn’t mince words, accusing Apple executives of “outright lying under oath” and deliberately defying her previous 2021 injunction. Her ruling even referred Apple to the U.S. attorney for possible criminal contempt proceedings, as highlighted by The New York Times.
Rather than comply with the original order to allow developers to direct users to alternative payment methods, Apple created a new system demanding a 27% commission on external purchases – just 3% less than their in-app cut – while adding deterrent “scare screens” warning users about security risks.
“Apple sought to maintain a revenue stream worth billions in direct defiance of this court’s injunction,” Judge Gonzalez Rogers wrote.
Internal documents revealed that App Store chief Phil Schiller had advocated for dropping commissions entirely, but CEO Tim Cook sided with then-CFO Luca Maestri to preserve revenue. “Cook chose poorly,” the judge noted in her scathing 78-page order.
The impact could be enormous for developers and consumers alike. Epic CEO Tim Sweeney called it “a wonderful day for everybody” and announced plans to return Fortnite to the App Store next week. P.S. Epic was also recently favored in a lawsuit against Google over its Play Store policies.
Furthermore, Spotify quickly promised to “move quickly to submit an app update,” with spokesperson Jeanne Moran telling The Verge this represents “a victory for developers everywhere.”
Adding to Apple’s loss is the fact that its shares dipped 1.5% in after-hours trading following the announcement. “We strongly disagree with the decision. We will comply with the court’s order, and we will appeal,” Apple spokesperson Olivia Dalton said in a statement.’
The new restrictions prevent Apple from imposing fees on external purchases, restricting link styles or button placements, and displaying anything beyond “neutral messages” when users leave the app for payments. For consumers, this likely means more payment options and potentially lower prices as developers pass on savings from avoiding Apple’s commission.
The ruling takes effect immediately, with the judge refusing to consider any stay requests, citing Apple’s “repeated delays and the severity of its conduct.” You can read the whole court order here (h/t The Verge).
Dwayne Cubbins
986 Posts
For nearly a decade, I've been deciphering the complexities of the tech world, with a particular passion for helping users navigate the ever-changing tech landscape. From crafting in-depth guides that unlock your phone's hidden potential to uncovering and explaining the latest bugs and glitches, I make sure you get the most out of your devices. And yes, you might occasionally find me ranting about some truly frustrating tech mishaps.
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