A landmark court ruling has dealt a decisive blow to Apple’s long-standing dominance over its App Store, signaling the end of what critics have dubbed the “Apple Tax.” For years, Apple has required app developers to use its in-app payment system—taking a 15% to 30% commission on every digital purchase. That era is now coming to a close, following a federal appeals court’s refusal to pause sweeping reforms ordered by a U.S. judge.
The U.S. Court of Appeals for the Ninth Circuit rejected Apple’s emergency request to delay new rules that force the company to open its App Store to more competition. This decision stems from the high-profile legal battle with Epic Games, the maker of Fortnite, which began in 2020. Epic challenged Apple’s policy of restricting in-app purchases to its own system and barring developers from steering users to alternative payment options.
Judge Yvonne Gonzalez Rogers previously found Apple in contempt for trying to sidestep a 2021 injunction. Apple’s attempt to impose a new 27% fee on purchases made outside its ecosystem was deemed “malicious compliance.” The court has now ordered Apple to stop collecting any fee on external payments and to allow developers to freely link to their own payment methods within their apps—without interference or scare tactics.
Immediate Impact for Developers and Users
- Developers can now bypass Apple’s commission: Apps like Spotify and Amazon Kindle have already begun adding links for users to pay directly on their own websites, offering transparent pricing and more payment options.
- Consumers get more choice and potentially lower prices: With developers no longer forced to pay Apple’s commission, users may see better deals and more flexible payment methods.
- No more “scare screens” or warnings: Apple is prohibited from discouraging users from choosing third-party payment options.
Spotify, for example, hailed the change as “the opening act of a new era,” now able to display full subscription prices and let users pay on the web—bypassing Apple’s in-app purchase flow entirely.
Why Did the Court Rule Against Apple?
The judge found that Apple’s efforts to maintain its lucrative revenue stream directly defied previous court orders. Apple’s 27% fee on external transactions and its restrictions on app links were viewed as deliberate attempts to undermine competition and preserve its “ill-gotten gains”. The court’s latest ruling enforces the original intent: to give developers and consumers more freedom and choice in how digital goods are bought and sold on iOS devices.
Apple has announced plans to appeal the ruling but must comply with the new rules in the meantime. The company is also facing mounting regulatory scrutiny in Europe and a new class-action lawsuit in the U.S. over its App Store practices. Industry watchers expect a wave of app updates as developers race to cut Apple’s commission from their bottom lines.
This decision marks a pivotal shift in the mobile app economy. The “Apple Tax” that once defined the App Store is effectively over, ushering in a new era of competition, transparency, and consumer choice on iOS.
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