Apple App Store Ruling: Court Denies Pause on Payment Fees

Apple's Appeal Denied in App Store Payment Dispute

A United States court has rejected Apple’s request for a stay, upholding a previous ruling. This ruling mandates that Apple cease charging developers fees on transactions completed outside the App Store via in-app links.

Impact on Apple's Revenue

Consequently, Apple will no longer be permitted to levy a charge when users click links within applications that direct them to external payment platforms. This decision potentially represents a significant revenue loss for the technology giant.

The court stated that Apple did not demonstrate sufficient justification for a stay. It affirmed that Apple “bears the burden of showing that the circumstances justify an exercise of [our] discretion,” and found the arguments presented unpersuasive.

Industry Reaction

Tim Sweeney, CEO of Epic Games, publicly celebrated the court’s decision. He proclaimed on X (formerly Twitter) that “The long national nightmare of Apple tax is ended.”

Apple expressed its disappointment with the court’s decision in an official statement. The company intends to continue its legal challenge through the appeals process.

Background of the Ruling

Apple maintains its position that the App Store provides a valuable platform for both developers and users. A spokesperson stated their goal is to “ensure the App Store remains an incredible opportunity for developers and a safe and trusted experience for our users.”

In April, Judge Yvonne Gonzalez Rogers sided with Epic Games, determining that Apple had deliberately violated a 2021 injunction. This injunction prohibited Apple from enforcing anti-competitive pricing practices.

Changes to App Store Policies

This means Apple is now required to modify its App Store rules. Developers are to be allowed to freely link to their websites for the purpose of purchasing digital goods.

Apple initially allowed external linking and alternative payment methods last year. However, it continued to impose a 27% fee and utilized what critics described as cautionary “scare screens.” The current ruling eliminates both of these practices.

Developer Responses

Several major companies have already begun adapting their applications. Spotify and Amazon have released updates enabling users to complete payments for subscriptions and purchases outside of the App Store.

Timing and Financial Implications

This ruling arrives shortly before Apple’s Worldwide Developers Conference (WWDC). Apple recently reported generating $1.3 trillion in billings and sales in 2024. The company noted that 90% of these sales did not incur commission revenue for Apple.

This article has been updated to include Apple’s official response.