A US district judge has ruled that Apple can no longer impose taxes on external payment links within App Store apps, following a prolonged legal battle with Epic Games. This decision allows developers to bypass Apple’s payment system without incurring fees and grants them control over how external purchase links appear in their apps. Apple must now comply with this ruling but intends to appeal. The court found that Apple’s VP of Finance lied under oath, which undermined Apple’s position. Both Epic and Spotify expressed satisfaction with the ruling and will promptly update their apps.
A US district judge, Yvonne Gonzalez Rogers, announced today that Apple must immediately cease taxing external payment links in App Store titles and cannot restrict their presentation within the apps.
This decision stems from the protracted legal battle between Apple and Epic Games, which has lasted over four years. While an earlier judgment favored Apple, this recent ruling marks a significant triumph for Epic and all developers aiming to distribute their apps in the US iOS App Store without incurring fees for using Apple’s payment systems.
Under this new ruling, Apple can no longer charge a commission or any fees on purchases made by consumers outside of an app. Additionally, it cannot impose restrictions on developers regarding the style, formatting, or placement of external purchase links, nor can it obstruct the use of buttons or calls to action. Apple also may not interfere with consumers’ ability to exit the app, except for providing a neutral message indicating that users are navigating to a third-party site.
Apple’s situation was further complicated when its VP of Finance, Alex Roman, was found to have lied under oath, and CEO Tim Cook was revealed to have knowingly advocated for defying the court’s original ruling from 2021, contrary to recommendations from Apple Fellow Phil Schiller.
In response to the ruling, Apple stated, “We strongly disagree with the decision. We will comply with the court’s order and we will appeal.”
Historically, Apple mandated that developers using its App Store require all users to utilize Apple’s payment system for in-app purchases. This included a 30% tax on the total purchase amount, which Apple retained. Developers were prohibited from including links to external purchasing pages or even hinting at their existence. After a subsequent ruling restricted this practice, Apple resorted to intimidation tactics whenever users attempted to click on external payment links, with even external payments being subjected to a 27% fee.
Both Epic and Spotify, which has faced similar issues with Apple, expressed satisfaction with the ruling and announced plans to update their apps promptly.
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