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Apple loses in court: App Store changes necessary

by Milan
May 1, 2025
in News
Apple Epic Games

Image: Shutterstock / mundissima

Apple is forced to adapt its App Store model under pressure from a US court. The dispute with Epic Games, which has been ongoing since 2020, is now bringing about profound changes – and could be a turning point in Apple's digital business model. The rules of the game in the App Store are changing significantly for developers and users.

For years, Apple has been criticized for its App Store fee policy. The accusation is that Apple earns a disproportionate share of its revenue from apps by charging up to 30 percent for each transaction. Epic Games, known for Fortnite, has publicly opposed this so-called "Apple Tax" – and ultimately pursued legal action. The outcome is now clear: Apple must change its behavior. Immediately.

How it all began: Epic vs. Apple

In August 2020, Epic integrated its own payment function into Fortnite – bypassing Apple's system and without the usual commission. Apple reacted promptly: Fortnite was removed from the App Store. Epic filed a lawsuit that same day. The central allegation was that Apple was behaving like a monopolist and abusing its market position.

First ruling in 2021: No monopoly, but with conditions

In 2021, the court ruled that Cupertino was not legally a monopolist. Nevertheless, Apple was required to allow developers to integrate external links or buttons to their own payment pages into their apps. This would allow users to pay outside of the App Store in the future. This fundamentally called into question Apple's revenue model.

Apple's implementation: formally correct, content controversial

Cupertino implemented this requirement, but on its own terms. Developers were allowed to integrate external links, but still had to pay a 27 percent share of the revenue – even if the sale took place outside the App Store. Apple also introduced a complex audit system that allowed developers to be extensively monitored to ensure they adhered to the rules. It also implemented so-called "scare screens" – warnings designed to discourage users from clicking on external links. These measures resulted in few developers taking advantage of the new option.

New ruling: Apple deliberately circumvented regulations

Epic filed an appeal against this implementation. Judge Yvonne Gonzalez-Rogers ruled in Epic's favor on all counts. She argued that Apple had deliberately undermined the initial ruling. The warnings, hidden costs, and complicated terms were deliberately designed to discourage external payment methods.

The new requirements: Immediately and without appeal

The judge gave Apple clear instructions that must be implemented immediately. Apple may:

  • do not demand a share of sales made through external links
  • not conduct audits to verify compliance with this rule
  • do not specify the design, language or wording of external links and buttons
  • do not exclude any developers or apps from using external links
  • only display neutral and factual information when a link leads to an external page
  • Do not prohibit the use of dynamic links where the user, for example, lands directly logged in to the developer's website

Possible criminal consequences for Apple

Particularly controversial: The judge is referring the case to the California prosecutor's office. She suspects that Cupertino deliberately lied when implementing the initial ruling. The focus is on Alex Roman, Apple's head of finance. According to court documents, Roman made false statements under oath to defend the implementation. Internal emails and statements from other employees are said to prove that Apple deliberately attempted to block external links. A criminal investigation is now being considered – and it cannot be ruled out that Roman may face personal consequences.

Apple's reaction: Implementation yes, but with resistance

Apple has declared that it will comply with the ruling – partly because there is no room for delay. At the same time, the company has announced that it will appeal. It is expected that Cupertino will nevertheless seek ways to protect its own business model. The focus is likely to be on the US market for the time being, as the ruling only applies there. Global implementation is not currently planned.

Apple: New rules in the App Store – but the final word hasn’t been spoken yet

The current ruling forces Apple to make significant changes, particularly in its handling of external payment methods. This opens up new opportunities for developers to make their offerings more flexible. At the same time, Apple's response demonstrates that the company is willing to implement the legal requirements – even if not all decisions are met with approval. It will be exciting to see how Apple implements the new regulations in practice and whether this might even lead to new, innovative solutions for developers and users. One thing is certain: The App Store will remain a central location for high-quality apps – even under changed conditions. The best accessories in one place: Our Amazon Storefront offers you top products, including for your HomeKit! (Image: Shutterstock / mundissima)

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