Apple ordered to open App Store to third-party payments, plans to appeal ruling

Apple has announced that it will make changes to its U.S. App Store policies following a ruling from the U.S. District Court for the Northern District of California, which found the company in violation of a 2021 injunction targeting its anti-steering rules.

While Apple says it strongly disagrees with the court’s decision and intends to appeal, it has confirmed that it will comply with the order immediately.

Apple

Judge Yvonne Gonzalez Rogers sharply criticized Apple for what she described as a willful refusal to comply with the original injunction, accusing the tech giant of deliberately creating new anticompetitive barriers to preserve its lucrative App Store revenue.

The ruling stems from the high-profile legal battle initiated by Epic Games, the developer behind Fortnite, which challenged Apple’s policy of requiring developers to use its own payment system and pay commissions of up to 30%. Although the initial 2021 verdict stopped short of labeling Apple a monopoly, the court ruled that its practices stifled consumer choice and violated California’s competition laws.

Under the new order, Apple can no longer prevent developers from adding buttons or links that direct users to external websites for purchases, cannot impose any commission on transactions that happen outside its ecosystem, and cannot interfere with how developers choose to present such options.

The court also explicitly banned Apple from using “scare screens” or pop-ups that discourage users from navigating to third-party payment options and made clear that Apple cannot block certain app categories or restrict developers from using dynamic, logged-in links.

In an unusually forceful statement, Judge Gonzalez Rogers wrote that Apple’s refusal to implement the changes as required amounted to contempt, citing internal documents and executive decisions that contradicted the company’s courtroom testimony. The matter has even been referred to federal prosecutors for potential criminal contempt proceedings.

The broader context of this legal battle points to increasing scrutiny over Apple’s control of the digital ecosystem. For nearly 15 years, Apple has enforced its 30% “Apple tax” on in-app purchases and subscriptions, a system that content providers like Meta and Spotify have long resisted. Both companies have taken steps to direct users away from in-app transactions to avoid fees, often leaving users confused or frustrated by the limitations imposed within iOS apps. In 2022, Spotify even displayed a message in its app saying, “Want to listen? You can’t buy audiobooks in the app. We know, it’s not ideal,” highlighting how Apple’s policies have hindered usability and access.

The court’s decision could pave the way for developers to offer users more flexible and cost-effective purchasing options, particularly in sectors like music, video streaming, and gaming, where subscription revenue is critical. Companies like Spotify may now be able to link to discounted rates and alternative payment methods directly from their apps, bypassing Apple’s commission altogether. Epic Games CEO Tim Sweeney responded to the ruling by saying Fortnite will return to the App Store next week and offered to drop current and future litigation if Apple applies the court’s new framework globally.

This isn’t the only legal trouble facing Apple. The U.S. Department of Justice and 16 states have filed a landmark antitrust lawsuit accusing Apple of using its dominance over the smartphone market to stifle competition and innovation, particularly in industries like entertainment. The complaint argues that Apple’s growing influence in content production, combined with its restrictive ecosystem, presents a serious threat to market fairness.

(via MacRumors)

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About the Author

Asma is an editor at iThinkDifferent with a strong focus on social media, Apple news, streaming services, guides, mobile gaming, app reviews, and more. When not blogging, Asma loves to play with her cat, draw, and binge on Netflix shows.