Apple loses court battle with Epic Games over App Store commission changes
A federal appeals court on Wednesday rejected Apple‘s request to pause a court order that forces the tech giant to allow app developers to bypass its payment system without paying commissions. The ruling deals a significant blow to Apple’s lucrative App Store business model and marks another victory for Epic Games in their ongoing legal battle.The Ninth Circuit Court of Appeals denied Apple’s emergency appeal, stating the company failed to justify why the changes should be halted while it pursues its case. The decision keeps in place an April ruling by U.S. District Judge Yvonne Gonzalez Rogers that found Apple in contempt of a 2021 injunction for willfully violating previous court orders.
What this means for app users and developers
Under the current order, Apple can no longer charge its standard 15% to 30% commission on transactions when developers direct users to external websites for purchases. The company is also prohibited from controlling how developers design payment links or where they place them within apps.Several major developers have already updated their apps to take advantage of the changes. Amazon’s Kindle app now features an orange “Get Book” button linking directly to Amazon.com, while Spotify and other companies have implemented similar workarounds to avoid Apple’s fees.Epic Games CEO Tim Sweeney celebrated the decision on social media, declaring “the long national nightmare of the Apple tax is ended.” Apple expressed disappointment with the ruling but vowed to continue fighting the case during the appeals process.The legal battle stems from Epic’s 2020 lawsuit challenging Apple’s control over app transactions and distribution. While Apple largely won the original case, the judge ordered the company to allow developers to steer customers to alternative payment methods. The current dispute arose when Apple attempted to maintain revenue through a 27% fee on external transactions, which the court deemed a violation of its earlier injunction.
