A federal judge on Wednesday permanently barred Apple from charging a fee on purchases made outside its App Store, finding the company willfully disregarded a previous court order in a long-running legal dispute initiated by Epic Games. The ruling also removes restrictions Apple had placed on developers communicating lower prices to customers through links.
The decision comes in the ongoing antitrust case brought by Epic Games over Apple's App Store practices, specifically the 30% commission Apple charges on in-app purchases. A 2021 injunction had required Apple to allow developers to include links in their apps directing users to alternative purchasing options on the web.
The court found Apple failed to comply with that order, instead imposing a 27% fee on transactions conducted via external links and implementing various restrictions on how developers could inform users.
Federal District Judge Yvonne Gonzalez Rogers stated that Apple sought to maintain a revenue stream worth billions in direct defiance of her injunction. The judge’s order took effect immediately, even as Apple plans to appeal.
Judge Gonzalez Rogers also sent a criminal referral to the U.S. Attorney in Northern California for Apple and its Vice President of Finance, Alex Roman, for contempt of court.
Developers and platforms catering to the creator economy have reacted positively to the ruling. Companies like Patreon, Passes, Kajabi, and Mighty Networks see the decision as a win for creative individuals and businesses that rely on subscriptions and digital sales.
A Patreon spokesperson said the ruling allows creators to get paid without giving Apple 30%. Patreon is preparing an app update to enable payment options outside the App Store, aiming to allow creators to keep more money.
Lucy Guo, founder and CEO of Passes, stated that the ruling would put more money in creators' pockets because companies previously had to charge more due to Apple's commissions. Gina Bianchini, CEO of Mighty Networks, said her company was celebrating.
The ruling could impact Apple's App Store revenue, a source of income for the company. Apple has expressed disagreement with the court's decision and plans to appeal, according to comments made by CEO Tim Cook.
The ruling is seen by some as a shift toward a more equitable digital marketplace for creators by removing barriers imposed by a dominant platform. Companies are already adapting; Epic Games recently announced updates for its store benefiting developers who use external purchasing. Payment processors like Stripe are also establishing tools to support off-app purchases. David Heinemeier Hansson, an app entrepreneur, described the ruling as the biggest usability leap forward for the iPhone engineered by a judge.
Matt Stoller, research director at the American Economic Liberties Project, noted that developers can now offer lower prices, invest in better products, and innovate without fear of retaliation.