A judge just blew up Apple’s control of the App Store

Epic Games v. Apple judge Yvonne Gonzalez Rogers just ruled that, effective immediately, Apple is no longer allowed to collect fees on purchases made outside apps and blocks the company from restricting how developers can point users to where they can make purchases outside of apps.

The ruling was issued as part of Epic Games’ ongoing legal dispute against Apple, and it’s a major victory for Epic’s arguments. Rogers also says that Apple ā€œwillfullyā€ chose not to comply with her previous injunction from her original 2021 ruling. ā€œThat [Apple] thought this Court would tolerate such insubordination was a gross miscalculation,ā€ Rogers says.

The judge also referred the case to the US attorney to review it for possible criminal contempt proceedings.

As part of the ruling, Judge Yvonne Gonzalez Rogers says that Apple cannot:

  • Impose ā€œany commission or any fee on purchases that consumers make outside an appā€
  • Restrict developers’ style, formatting, or placement of links for purchases outside of an app
  • Block or limit the ā€œuse of buttons or other calls to actionā€
  • Interfere with consumers’ choice to leave an app with anything beyond ā€œa neutral message apprising users that they are going to a third-party siteā€

Epic Games CEO Tim Sweeney says that, following this ruling, the company will bring Fortnite back to the US App Store ā€œnext week.ā€ Sweeney is also offering a ā€œpeace proposalā€ from Epic: ā€œIf Apple extends the court’s friction-free, Apple-tax-free framework worldwide, we’ll return Fortnite to the App Store worldwide and drop current and future litigation on the topic.ā€

In many cases, Apple takes a 30 percent cut of purchases made in its apps, and Rogers’ 2021 ruling forced Apple to allow developers to point to alternative payment options. But Apple instituted a policy that demanded developers pay Apple a 27 percent commission on those purchases, which many companies, including Epic, were unhappy about.

ā€œIn the end, Apple sought to maintain a revenue stream worth billions in direct defiance of this Court’s Injunction,ā€ Rogers says. She notes that, inside Apple, App Store chief Phil Schiller advocated for the company to comply with the injunction, but that CEO Tim Cook ā€œchose poorlyā€ by ignoring Schiller and letting CFO Luca Maestri ā€œconvince him otherwise.ā€

Apple didn’t immediately reply to a request for comment.

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