A U.S. federal court has rejected Apple’s request to temporarily halt a key ruling that compels the tech giant to cease charging developers fees for payments made via links directing consumers outside the App Store. This critical judicial decision effectively bars Apple from continuing its longstanding practice of taking commissions on in-app transactions whenever users opt to use external payment platforms through embedded links.
In April, Judge Yvonne Gonzalez Rogers determined that Apple had deliberately violated a 2021 injunction prohibiting specific anti-competitive practices. This ruling mandated Apple to modify policies concerning external payment options, allowing app developers greater freedom to direct users to their own channels for digital purchases and subscriptions.
Immediately following this judgment, Apple sought to secure a stay and filed an appeal, citing potential significant disruptions to its App Store revenue model. However, the Ninth Circuit Court of Appeals dismissed the company’s request, stating explicitly that Apple had failed to demonstrate sufficient justification for delaying enforcement of the ruling.
Epic Games CEO Tim Sweeney, whose company’s lawsuit was central to this legal contest, heralded the court’s decision on social media, declaring, “The long national nightmare of the Apple tax is ended.” He expressed optimism that the forthcoming Worldwide Developers Conference (WWDC), scheduled for next week, would serve as a landmark moment celebrating increased developer freedom and choice.
Previously, Apple had allowed limited external payment options under certain conditions, but continued imposing a 27% fee while displaying warnings and disclaimers, criticized by many as intended to dissuade users from leaving the App Store ecosystem. With the latest court ruling, this tone and approach will no longer be permissible.
Leading developers including Spotify and Amazon have already begun to update their apps accordingly, giving users direct ways to purchase digital goods and subscriptions outside the App Store framework. The decision represents a significant setback for Apple, coming on the heels of the company’s recent announcement that the App Store generated approximately $1.3 trillion in transactions during 2024. Apple also noted in their report that roughly 90% of this volume did not result in direct commission revenue for the company.
As the technology industry awaits Apple’s upcoming WWDC, this landmark court ruling is poised to redefine the revenue landscape for developers on the iOS ecosystem and reshape the relationship between Apple and countless app publishers.
