Jun 6, 2025, 2:07 PM
Jun 5, 2025, 4:43 PM

Apple faces setback as court denies request to halt app store fee ruling

Highlights
  • A three-judge appeals panel denied Apple's request to postpone an April 30 ruling.
  • This ruling prohibits Apple from charging fees on in-app transactions not processed via its payment system.
  • The decision threatens substantial financial implications for Apple as it contests the ruling.
Story

In the United States, a three-judge appeals panel recently rejected Apple's plea to suspend an April 30 order that forbids the company from charging fees on in-app transactions conducted outside its payment system. This ruling poses financial risks for Apple, which has relied heavily on revenue from commissions on app-based commerce. The legal struggle began nearly five years ago, instigated by Epic Games, a prominent video game developer, which accused Apple of monopolistic practices in its App Store, particularly regarding high commissions that can reach up to 30%. Following a series of legal battles and resistant rulings, Apple's compliance to allow alternative payment methods in its App Store was one key focus. The outcome of this recent appeal threatens to significantly impact Apple's business model and revenue streams in the mobile app sector. Meanwhile, Epic Games' CEO Tim Sweeney declared the appeal's rejection as the end of what he termed the 'Apple tax,' reflecting growing sentiment against Apple's fee structures. Apple expressed disappointment over the ruling and affirmed its commitment to continue appealing the decision in order to maintain what it considers a valuable platform for developers, assuring a secure experience for users. As the legal confrontation continues, it raises ongoing discussions about the balance between revenue generation, developer rights, and consumer interests within digital marketplaces.

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