Apple Faces Major Shift in App Store Payment Policies After Court Ruling

A recent court ruling has upended the situation for Apple Inc. Now, they won’t be able to charge developers for payment processing through their App Store. Judge Yvonne Gonzalez Rogers subsequently issued a contempt decision finding that Apple had willfully violated a 2021 injunction. First, among other things, this injunction barred the company from enforcing…

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Apple Faces Major Shift in App Store Payment Policies After Court Ruling

A recent court ruling has upended the situation for Apple Inc. Now, they won’t be able to charge developers for payment processing through their App Store. Judge Yvonne Gonzalez Rogers subsequently issued a contempt decision finding that Apple had willfully violated a 2021 injunction. First, among other things, this injunction barred the company from enforcing anticompetitive minimum resale price schedules. As a result, developers will no longer incur fees when directing customers to alternative payment methods outside of the App Store.

This latest ruling follows an extended court battle primarily between Apple and Epic Games, that started in 2020. The court’s decision has significant implications. Business Insider Apple would take an enormous $5-9 billion revenue hit as a result of this change. With a $1.3 trillion dollar top line in billings and sales, in 2024 the tech behemoth continues to fantasize. What’s extraordinary is that nearly 90% of these transactions didn’t generate a dime of commission revenue for the firm.

Tim Sweeney, CEO of Epic Games, weighed in on the ruling via a tweet on June 4, 2025, declaring, “The long national nightmare of Apple tax is ended.” He added a link to a photo that showed exactly what the mood was like leading up to the decision. This settlement is a watershed moment in the fight between the pro-competitive, anti-App Store policy opinions, and all of the pro-developer policy rights arguments.

The court emphasized that “Apple bears the burden of showing that the circumstances justify an exercise of [our] discretion” regarding its pricing practices. Ultimately, the judges concluded, “After reviewing the relevant factors, we are not persuaded that a stay is appropriate,” effectively allowing the ruling to take immediate effect.

Apple’s previous practices had drawn criticism for creating an environment where developers were often forced to utilize Apple’s payment system, which included hefty fees. The 2021 injunction opened a path toward a less monopolistic marketplace. This most recent ruling deepens our resolve to encourage and lead the way toward more equitable practices.

Apple is considering its financial options given the cost of this decision. Industry analysts like those at SmartBrief are watching closely to see how this shift will affect its revenue streams moving forward. The company has not published an official response to the ruling at this time. It has publicly touted the supposed value of its App Store as essential for both app discovery and security.