A US judge has ruled against Apple, banning the company from taxing or restricting external payment links in iOS apps, effective immediately. This victory for Epic Games and developers, part of a four-year legal battle, frees US App Store apps from Apple’s 30% in-app payment fees, shaking up the iPhone ecosystem.

Apple can no longer charge fees on external purchases

Apple can no longer charge fees like its 27-30% cut on external purchases, block developers from styling or placing payment links, or limit buttons and calls-to-action. The company is also barred from using scare tactics—such as warning pop-ups—to discourage users from leaving an app to make purchases elsewhere. Developers can now guide users to third-party payment sites with only neutral warnings, a win for Epic and Spotify, who’ve clashed with Apple over similar issues.

The ruling, tied to the Epic vs. Apple saga since 2020, wasn’t helped by Apple VP Alex Roman’s false testimony or CEO Tim Cook’s push to defy a 2021 ruling, despite Phil Schiller’s caution, per TechCrunch. Previously, Apple forced developers to use its payment system, pocketing 30% of in-app purchases and banning external links or hints of alternatives, later using scare tactics for external payments.

Apple, vowing to appeal while complying, faces a shift as developers like Epic and Spotify plan immediate app updates. The table below sums up the details. This could lower costs for users and boost developer profits, especially for free-to-play games like Fortnite, but only in the US for now. With Google’s Play Store facing similar scrutiny, the ruling might ripple across platforms. Will Apple’s appeal overturn this, or is this a new era for app freedom? Only time will tell.

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In a significant turn of events in the ongoing legal battle between Epic Games and Apple, the tech giant has reinstated Epic Games’ developer account. This decision by Apple comes after a swift intervention by the European Commission, marking a breakthrough in the dispute that has been ongoing since 2020.

Since 2020, Epic and Apple have been entangled in a legal dispute. Epic Games accused Apple of breaching U.S. antitrust regulations by imposing fees of up to 30% on in-app purchases made on its iOS devices. Despite Epic’s efforts to challenge Apple’s policies, the court ruled against them. Epic’s deliberate violation of Apple’s regulations resulted in the gaming company being barred from Apple’s devices.

Recent developments saw Apple initially blocking Epic Games from launching its online marketplace and bringing back Fortnite in Europe. However, pressure from European regulators, coupled with the enforcement of the European Union’s Digital Markets Act (DMA), prompted Apple to backtrack on its decision.

The DMA, which bans Apple and Google from controlling which apps are distributed on devices with iOS and Android operating systems, played a crucial role in Apple’s compliance. The European Commission’s involvement led to Apple’s decision to reinstate Epic’s developer account, allowing them to operate their game store in Europe and bring Fortnite back to iOS devices in the region.

The reinstatement has broader implications, signaling a shift in Apple’s App Store business model and highlighting the effectiveness of regulatory bodies like the European Commission in holding tech giants accountable. Both Epic Games and the EU’s industry chief, Thierry Breton, have expressed satisfaction with Apple’s decision, emphasizing the importance of enforcing DMA policies.

Epic Games CEO, Tim Sweeney, welcomed the reinstatement of the developer account, viewing it as a positive message to developers regarding the enforcement of DMA. Apple, in confirming the decision, stated that Epic has committed to following DMA policies, leading to the restoration of their developer agreement.

Looking ahead, Epic Games is set to proceed with its plans to launch the Epic Games Store and Fortnite on iOS devices in Europe, marking a significant step forward in resolving the dispute between the two companies.

The reinstatement of Epic Games’ developer account by Apple following EU intervention represents a milestone in the ongoing legal saga, underscoring the impact of regulatory oversight in the tech industry.

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