Apple is facing major consequences after a federal court ruling ordered the tech giant to overhaul some of its App Store practices. Judge Yvonne Gonzalez Rogers ruled that Apple can no longer collect fees from purchases made outside its own platform and must remove any tactics that steer users away from alternative payment methods.
The decision wraps up a lengthy five-year legal dispute with Epic Games, the developer behind Fortnite, and strikes at the heart of Apple’s massive services revenue — which reportedly rakes in nearly $100 billion annually.
The case, which began in 2020, culminated in a dramatic judgment. Judge Gonzalez Rogers openly criticized Apple for violating her prior 2021 order and accused company leaders of giving false testimony under oath. Her decision even includes a referral to the U.S. Department of Justice to explore potential criminal contempt charges, as noted by The New York Times.
Instead of complying with the original order to allow developers to link to external payment systems, Apple introduced a workaround: a 27% commission on outside transactions — barely less than the 30% in-app fee — while inserting warning screens that discouraged users from leaving Apple’s ecosystem.
In her ruling, the judge called out Apple’s tactics as a blatant attempt to retain billions in revenue despite a standing injunction. “Apple sought to maintain a revenue stream worth billions in direct defiance of this court’s order,” she wrote.
Internal Apple emails made public during the case revealed that App Store head Phil Schiller had once suggested eliminating commissions entirely, but CEO Tim Cook ultimately sided with CFO Luca Maestri to preserve profits. The judge criticized this decision, saying plainly: “Cook chose poorly.”
The ruling is expected to ripple through the tech world, potentially reshaping how developers and users interact with the App Store. Epic Games CEO Tim Sweeney welcomed the outcome, calling it “a wonderful day for everybody” and sharing that Fortnite would return to iOS soon. Epic also recently won a similar antitrust case against Google’s Play Store.
Spotify was quick to react as well. The streaming giant said it would submit an updated version of its app to reflect the changes, with spokesperson Jeanne Moran calling the verdict “a victory for developers everywhere.”
Apple’s legal defeat also made an impact on Wall Street, with shares dipping 1.5% in after-hours trading after the news broke. In a statement, Apple spokesperson Olivia Dalton confirmed the company will comply with the ruling but intends to appeal the decision.
Under the new rules, Apple must stop charging external purchase fees, cannot limit the design of outbound payment links, and must stick to “neutral” messaging if users leave an app to pay elsewhere. For consumers, this could translate to more payment freedom and possibly lower prices, as developers avoid Apple’s usual commission.
The changes are taking effect immediately. Judge Gonzalez Rogers rejected any delays, citing Apple’s history of stalling and the seriousness of its non-compliance. For those interested, the full court order is available online, courtesy of The Verge.