US Court Blocks Apple From Charging Developers on External Payments

In a landmark decision, a U.S. court has denied Apple’s request to pause a ruling that prohibits the company from charging developers fees on payments made outside the App Store through links embedded in apps. This ruling effectively ends Apple’s long-standing practice of collecting commissions on digital purchases routed through its platform.

The court emphasized that Apple failed to justify the need for a stay, stating, “Apple ‘bears the burden of showing that the circumstances justify an exercise of [our] discretion,’” and ultimately found no grounds to halt the enforcement of the ruling. This decision follows a 2024 injunction where Apple was found to be in “willful violation” of antitrust regulations by forcing anticompetitive pricing on developers.

Epic Games’ CEO Tim Sweeney hailed the ruling as the end of the “Apple tax,” celebrating the newfound freedom for developers to link users to external payment options without incurring Apple’s 27% commission. This change is already prompting major companies like Spotify and Amazon to update their apps, allowing users to pay for subscriptions and purchases outside the App Store ecosystem.

Previously, Apple had allowed external links but still imposed fees and displayed warning screens to discourage their use. With this ruling, both practices will cease, signaling a major shift in how digital transactions are handled on iOS devices. This development could reshape the app economy by reducing costs for developers and potentially lowering prices for consumers.

Apple’s recent report highlighted that it generated $1.3 trillion in billings and sales in 2024, with 90% of those sales not producing commission revenue. Despite this, the ruling poses a significant challenge to Apple’s revenue model, especially as the company prepares for its Worldwide Developer Conference (WWDC), where this topic is likely to be a focal point.

For developers and businesses, this ruling opens new opportunities to innovate payment flows and reduce dependency on Apple’s ecosystem fees. It also raises questions about how Apple will adapt its App Store policies and user experience moving forward. Will this lead to more competitive pricing and diversified payment options in the app market? The landscape is poised for transformation.