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A court has recently denied Apple’s application for a stay of execution against it. Recall that an Apple App Store ruling requires the company to stop charging developers for payments made outside the App Store through links in apps.
By implication, in the U.S., Apple will no longer be able to charge developers a “strange” fee. This fee applies when customers click on an in-app link leading to a third party outside the Apple Store for payment. Moreover, this counts as a potential loss of revenue to the company.
According to the U.S. court ruling, “Apple bears the burden of showing that the circumstances justify an exercise of discretion.” The verdict added that after reviewing the relevant factors, Apple failed to persuade that a stay was appropriate.
Apple App Store Ruling: Developer Freedom Affirmed in App Store Link Policy
While reacting to the ruling, Epic Games, through their head, Tim Sweeney, applauded the court’s ruling. His post on X reads: “The long national nightmare of Apple tax has ended.”
An Apple spokesperson said, “We are disappointed with the decision not to stay the district court’s order.” Additionally, we’ll continue to argue about the Apple App Store ruling during the appeals process. As we’ve said before, we strongly disagree with the district court’s opinion. Apple wishes that the App Store remains an incredible opportunity for developers. The company also hopes to have a safe and trusted user experience.
In April, Judge Yvonne Gonzalez Rogers ruled in favour of Epic Games, saying that Apple was in “willful violation” of a 2021 injunction. This injunction barred Apple from forcing anti-competitive pricing. Essentially, Apple has to change the App Store rules and allow developers to freely link to their website. This continued affirmation of the Apple App Store ruling in favour of Epic Games consequently enables users to purchase digital goods.
Apple Faces Legal Heat and Developer Pushback Ahead of WWDC
However, Apple responded by filing an emergency motion in May seeking a stay on the Apple App Store ruling. As if that wasn’t enough, Apple also filed an appeal against the verdict around the same period. In the same vein, Apple refused to comply with the court ruling; hence, sparked EU backlash. Additionally, judge Yvonne got infuriated following Apple’s refusal to comply with the court’s order.
Meanwhile, it’s noteworthy that Apple began allowing other apps to link out and use non-Apple payment mechanisms last year. But the company still demanded a 27% fee, adding what critics called “scare screens.” Interestingly, the new Apple App Store ruling has eliminated both practices.
Additionally, large companies are changing their apps, with Spotify and Amazon publishing new updates. These updates allow users to pay for their subscriptions and purchases outside the App Store.
With the Worldwide Developers Conference (WWDC) slotted for next week, this is a big blow to Apple. A few days ago, the company published a report saying that it generated $1.3 trillion in billings and sales in 2024. It added that 90% of those sales didn’t generate commission revenue for Apple.
