Following a federal court ruling that found the firm in violation of a previous injunction, Apple has revised its App Store payment policies.
Developers in the United States can now include direct links to external payment platforms in their iOS apps, allowing users to make purchases outside of Apple’s system.
The change comes after US District Court Judge Yvonne Gonzalez Rogers found that Apple had “willfully” defied a 2021 order by creating new barriers – like warning screens and additional fees – that discouraged developers from directing users to alternative purchasing methods. The judge ruled Apple’s response undermined the intent of the original injunction, which aimed to give developers more control over their payment options.
Apple says it will comply with the ruling but plans to appeal. In a statement, the company said it “strongly disagrees” with the contempt finding and will seek to overturn it in a higher court.
Spotify was among the first major apps to adopt the new policy. On May 3, the music streaming service said it had released an app update for US users that includes clear pricing details and direct links to external payment pages – bypassing Apple’s in-app payment system.
“The update will finally allow us to freely show clear pricing information and links to purchase,” Spotify said in a post on X. The company called the change a win for “consumers, artists, creators, and authors,” and a sign of a more level playing field for developers.
Epic Games CEO Tim Sweeney, whose company initiated the lawsuit against Apple in 2021, praised Spotify’s move as a breakthrough. “Congratulations to Spotify for being the first major iOS app to exercise its court-mandated right to do digital commerce with customers free of Apple obstruction, interference, and the Apple Tax,” he posted on X.
Epic’s legal battle with Apple began after it challenged the tech company’s tight control over app distribution and in-app purchases on iOS devices. Although Judge Gonzalez Rogers stopped short of declaring Apple a monopoly, she did order the company to allow developers to link to external payment options. Apple’s initial response included a 27% commission on external transactions and required the use of deterrent messaging – measures the court later ruled were non-compliant.
With this latest ruling, Apple must abolish the 27% commission and change its guidelines to comply with the court’s understanding of the injunction. According to reports from Reuters and The Verge, Apple’s revised policy now allows external links without imposing additional fees, although full enforcement details are still unknown.
The shift arrives as Apple prepares to host its annual Worldwide Developers Conference in June, where developer relations will likely take centre stage. Analysts note that this moment comes as Apple works to maintain trust with the developer community while safeguarding a services division that now contributes more than 25% of the company’s total revenue.
“There’s still a lot of revenue coming in from subscriptions, iCloud, and more, so this is not the end of the App Store being a good source of revenue for Apple,” said Carolina Milanesi, an analyst at Creative Strategies. She said that allowing external payments may be a way for Apple to avoid further scrutiny while preserving core income streams.
Sweeney compared the outcome to the European Union’s Digital Markets Act, which went into effect last year and requires companies like Apple to open their platforms to more competition. “Apple’s 15-30% junk fees are now just as dead here in the United States of America as they are in Europe under the Digital Markets Act,” he said.
Despite the rule change, Apple’s platform remains important for smaller developers. Milanesi stated that for companies without the resources of Spotify or Epic Games, the App Store remains one of the most cost-effective ways to reach a global audience.
Most apps on the App Store generate income through advertising or subscriptions. Apple continues to take a share of that revenue, even as policy changes open new monetisation pathways for larger developers.
The outcome of Apple’s pending appeal in the Ninth Circuit Court of Appeals may shape how far the company must go in relaxing its control over app distribution and transactions. In the meantime, developers have more room to experiment with alternative business models, and Apple faces increased pressure to show that its ecosystem can support both user choice and business growth.
(Photo by Unsplash)
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