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Apple loses against Epic Games and can no longer charge external commissions

moizzz

4 days ago

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Epic Games achieved a historic victory in its long legal battle against Apple. After nearly five years of dispute, Judge Yvonne Gonzalez Rogers ruled in favor of Epic and forced Apple to allow external payment methods in apps, meaning Apple will no longer be able to apply additional commissions.

Apple "Anticompetitive"

The battle began in 2020, when Epic sued Apple for applying 15% to 30% commissions on in-app purchases and blocking alternative payment methods. This led to Fortnite being removed from the App Store, marking the beginning of a legal confrontation that impacted the entire mobile industry.

In 2021, an initial ruling ordered Apple to allow developers to inform users about alternative payment methods. However, Apple implemented new 27% commissions and visual obstacles to discourage their use. The judge ruled that these practices deliberately violated the previous ruling, labeling them as anticompetitive.

Legal and Economic Consequences

The new 80-page ruling not only forces Apple to remove those barriers but could also have criminal consequences. The case has been referred to the U.S. Attorney's Office for possible contempt charges, and Apple’s Vice President of Finance, Alex Roman, is accused of lying under oath. It was also revealed that Tim Cook ignored internal recommendations aimed at complying with the law without resorting to commissions.

"The Apple Tax is Over"

Epic Games CEO Tim Sweeney celebrated the victory on social media: “The Apple Tax is over.” He emphasized that this ruling makes abusive commissions illegal in both the U.S. and Europe, under the Digital Markets Act. According to Sweeney, it took “4 years, 4 months, and 17 days” since the start of the legal battle.

Fortnite Returns to the App Store

With this ruling, Fortnite will officially return to the iOS App Store in the United States next week, and Epic is proposing a global return if Apple applies the new conditions worldwide. Other developers like Spotify have already begun implementing alternative payments and displaying prices outside Apple’s ecosystem.

What Now?

This precedent could transform how all app stores operate. More developers may challenge the commission model, and users will see new payment options, better prices, and greater transparency. Epic, for its part, has announced that its own store will stop charging commissions on the first million dollars in revenue starting in June.

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