US Court Bars Apple from Collecting Fees on External App Purchases

A significant legal victory has been secured by Epic Games against Apple, as a US court has imposed an injunction preventing the tech giant from charging fees on app purchases made outside of its ecosystem. This development comes as a result of a longstanding dispute between the two companies. The court's ruling, which takes immediate effect, also prohibits Apple from restricting developers' ability to inform users about alternative payment methods that bypass the App Store. Consequently, Fortnite is expected to be reinstated on the App Store in the US within the next week, according to a statement made by Epic's Tim Sweeney on Twitter. The court order explicitly states that Apple is no longer permitted to impose commissions on off-app purchases or hinder developers' communication with users. Furthermore, the ruling refers Apple and one of its vice presidents to the US attorney's office for potential investigation into criminal contempt. Reports indicate that Apple intends to appeal the decision. The original injunction stemmed from a 2021 trial, which deemed Apple's 30% commission 'anticompetitive' and mandated the company to allow developers to direct users to alternative payment options. However, Apple subsequently introduced a 27% commission on 'off-app' purchases, prompting the latest ruling. The court criticized Apple's tactics, including the use of 'scare screens' to discourage users from making payments outside of the App Store, describing these actions as an attempt to 'dissuade customer usage of alternative purchase opportunities' and maintain its revenue stream. While the ruling currently only applies to the US, Epic's CEO has proposed a global compromise, suggesting that if Apple extends the 'friction-free, Apple-tax-free framework' worldwide, Fortnite will be reinstated on the App Store globally, and all related litigation will be dropped. This development comes on the heels of Apple being fined $568 million by the EU last month for deterring third-party payment methods that circumvent the App Store.