Federal Judge Rules Apple Must End Anticompetitive App Store Practices
A federal judge ruled that Apple deliberately undermined a 2021 injunction requiring it to loosen control over the App Store. Apple chose the most anticompetitive options, including maintaining high commission fees and restricting developer links, to preserve its revenue. The new ruling demands Apple allow unrestricted links for purchases outside the App Store and prohibits commissions on web sales, marking a significant shift in App Store policies.
In a landmark ruling, federal judge Yvonne Gonzalez Rogers sharply criticized Apple for deliberately choosing the most anticompetitive options in response to a 2021 court order aimed at loosening its App Store control. The judge found that Apple’s attempts to comply were superficial and designed to maintain its lucrative commission revenue streams at the expense of developers.
The original injunction required Apple to allow developers to include links and buttons within their apps that direct users to alternative purchase methods outside the App Store, known as the “anti-steering injunction.” However, the order was vague, allowing Apple to impose conditions that effectively preserved its commission fees on web-based sales.
Internally, Apple debated multiple compliance strategies: eliminating commissions but restricting link placement, charging commissions on web sales, or auditing developers’ external sales. Ultimately, Apple combined charging a commission with restricting where links could appear — a choice the court deemed “the most anticompetitive option.”
Apple’s executives, including CEO Tim Cook, approved a 27% commission rate on web sales, despite knowing this high fee would make the option financially unviable for most developers. The company also designed user interface elements to discourage users from clicking external purchase links, including “scary” full-screen warnings and limiting link styling to plain text.
The court found that Apple’s approach was a deliberate effort to maintain its control and revenue, describing the company’s choices as prioritizing profit over compliance. Judge Gonzalez Rogers concluded that Apple’s CEO “chose poorly” by opting for a strategy that undermined the injunction’s intent.
The new ruling requires Apple to allow developers unrestricted use of links and buttons for directing users to external purchase options and prohibits Apple from charging commissions on those web-based sales. Apple has stated it disagrees with the decision and plans to appeal.
Broader Implications for Developers and the App Economy
This ruling marks a pivotal shift in the app marketplace landscape, potentially reducing Apple’s gatekeeping power and enabling developers to explore alternative monetization strategies without prohibitive fees. It may encourage innovation and competition by allowing direct user engagement for purchases outside the App Store ecosystem.
Developers and businesses should prepare for changes in app store policies and consider how to leverage direct purchase links to optimize revenue and user experience. Monitoring regulatory developments and platform responses will be critical in this evolving environment.
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