Today : May 02, 2025
Technology
02 May 2025

Judge Rules Apple Must Stop Charging App Fees

Epic Games set to return Fortnite to iOS App Store following court decision

In a landmark ruling on April 30, 2025, Judge Yvonne Gonzalez Rogers declared that Apple can no longer impose a 27% commission on purchases made outside of its iOS App Store. This decision marks a significant victory for Epic Games, which has been embroiled in a legal battle with Apple since 2020 over what it describes as exorbitant fees and restrictive practices that hinder competition.

The judge's ruling comes after a permanent injunction issued in 2021 that forbade Apple from blocking third-party payment options. In her latest ruling, Gonzalez Rogers found that Apple was in "willful violation" of this injunction, having continued to collect fees on transactions made outside of the iOS Store. "Apple’s continued attempts to interfere with competition will not be tolerated," she stated, emphasizing the seriousness of the violation.

As a consequence of the ruling, Epic Games announced that it plans to return its popular game Fortnite to the U.S. iOS App Store next week, specifically during the week of May 5, 2025. Epic Games CEO Tim Sweeney expressed optimism about the future, stating that if Apple removes the third-party payment fee globally, the company would not only reinstate Fortnite on the iOS App Store worldwide but also drop all current and future litigation regarding the matter.

Fortnite has been unavailable on the iOS App Store since 2020, following Epic Games' attempt to circumvent Apple's payment system. This move led Apple to block the game, igniting a legal dispute that has drawn significant attention in the tech industry.

In a twist to the saga, Epic Games has introduced a new character skin called the Pine Patron, which symbolizes the potential reconciliation between the two companies. Sweeney remarked, "If we’re able to reach resolution with Apple, then it might be possible for our players to have the ability to earn the Pine Patron outfit." This follows the earlier introduction of the Tart Tycoon skin, a character representing Epic's ongoing battle against Apple's policies.

However, Apple is not taking the ruling lightly. The company has stated that it strongly disagrees with the decision and intends to appeal while complying with the court's order. Apple has been instructed to stop imposing fees, restrict or block how developers communicate with customers, and eliminate any practices that discourage users from purchasing through third-party sites.

In a parallel development, Spotify announced on May 1, 2025, that it has submitted a new app update to Apple, made possible by the recent court ruling. This update will allow U.S. consumers to see subscription pricing details, promotional information, and to click links for purchasing subscriptions directly within the Spotify app. The ruling requires Apple to stop restricting developers' ability to communicate with their customers free of charge, thus enhancing user experience and competition.

Spotify's spokesperson highlighted the absurdity of the previous restrictions, stating, "The fact that we haven’t been able to deliver these basic services, which were permitted by the judge’s order four years ago, is absurd." The update signifies a shift in the app ecosystem, allowing developers to utilize alternative payment methods beyond Apple’s payment system.

The implications of Gonzalez Rogers' ruling extend beyond just Epic Games and Spotify. Other app developers are likely to benefit from the loosening of Apple's grip on its App Store, paving the way for a more competitive landscape in the mobile app market. Gonzalez Rogers noted that Apple's actions amounted to "insubordination," and warned that there are no second chances for companies that willfully disregard court orders.

In light of the ruling, Gonzalez Rogers has recommended that federal prosecutors consider pursuing criminal contempt proceedings against Apple for its violations. This suggests that the legal ramifications for Apple could escalate, further complicating its ongoing battle with regulatory bodies.

Apple has faced scrutiny not only in the U.S. but also internationally. The company was recently fined a combined $800 million alongside Meta for violating the Digital Markets Act, which included restrictions on third-party purchasing options. Furthermore, Apple lost an antitrust case against Spotify in the European Union in 2024, which further underscores the mounting pressure on the tech giant regarding its App Store practices.

The legal tussle between Epic Games and Apple is not an isolated incident; it reflects a broader movement in the tech industry where developers are increasingly challenging the dominance of major platforms. Epic Games, in particular, has a history of pursuing legal action against app distributors, having previously waged similar battles against Google regarding its Play Store policies.

As the dust settles from this recent ruling, the future of app distribution on Apple devices remains uncertain. While Epic Games prepares to reintroduce Fortnite to the iOS App Store, the potential for further legal disputes looms large. Sweeney's comments reveal a cautious optimism, but the reality is that Apple could still reject Epic's submission for Fortnite, citing compliance with rules. "We just have to see what Apple does," Sweeney noted. "Apple could arbitrarily reject Epic from the App Store despite us following all of the rules. But, you know, they would have to deal with various consequences of that."

In summary, the recent court ruling against Apple marks a pivotal moment in the ongoing debate over app store policies and developer rights. With potential criminal contempt proceedings on the horizon and the prospect of more competition in the app market, the outcome of this legal saga could reshape the landscape for developers and consumers alike.