Court orders Apple to stop collecting fees for purchases made outside the App Store

Judge Yvonne Gonzalez Rogers has ruled that Apple violated her own ruling back in 2021 on the lawsuit Epic Games filed against Apple a year before. Now, it's ordering (PDF) Apple to stop collecting commissions on purchases that weren't paid through the App Store effective immediately. In 2021, Gonzalez Rogers ruled that Apple did not hold an App Store monopoly. However, she also said that the company must allow developers to direct users to other payment systems that would let them bypass the 30 percent commission fee it collects from App Store purchases. 

In a legal filing by Epic Games last year, it accused Apple of non-compliance, since it still took a 27 percent cut for purchases made outside the App Store and even showed users pop-up screens warning them that paying outside its own store may not be secure. For members of the iOS Small Business Program, it took a smaller 12 percent commission. But the judge explained in her new ruling that Apple wasn't supposed to collect any fee at all. "Apple sought to maintain a revenue stream worth billions in direct defiance of this court’s injunction," she said. 

In addition to prohibiting Apple from collecting fees for external purchases, she also barred the company from showing users "scare screens" discouraging them from using third-party payment systems. She prohibited Apple from creating rules that would prevent developers from presenting customers with buttons and links for external payments, as well. Apple said it will pursue an appeal, but that it will comply with the court's orders. "We strongly disagree with the decision. We will comply with the court's order and we will appeal," an Apple spokesperson told The New York Times. 

In her ruling, Rogers said that the documents Apple submitted last year showed that App Store lead Phil Schiller advocated for the company to stop collecting fees on web links during a 2023 meeting. But Apple's former Chief Financial Officer Luca Maestri convinced Tim Cook otherwise. Cook also asked his people to revise the scare screen for web links "to reference the fact that Apple’s privacy and security standards do not apply to purchases made on the web.” Apple knew exactly what it was doing and "at every turn chose the most anticompetitive option," Gonzalez Rogers wrote. Further the company's Vice-President of Finance, Alex Roman, allegedly lied under oath to hide the truth. Thus, the judge has asked the US attorney for the Northern District of California to investigate Apple and Roman for criminal contempt.

In a tweet, Epic Games CEO Tim Sweeney announced that it will bring back Fortnite for iOS in the US next week. He also promised to return Fortnite to the App Store worldwide — and to drop any lawsuit covering the issue — if Apple applies a commission-free tax-free payment framework everywhere.

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