Apple has been in an ongoing battle for the commissions on payments for apps on iPhones. The situation all started with Epic Games, and it's been ongoing for quite a while now. The latest development in the saga is that the federal appeals court has now allowed Cupertino to collect commissions on outside payments once again.
Court is siding once again with Apple on the Epic vs Apple fight
Back in April, Judge Gonzalez Rogers found that Apple was in violation of a 2021 injunction. The injunction required Apple to remove barriers to third-party payments for apps. Well, that pretty much meant that Cupertino was no longer allowed to charge any commission, not just its previous 27%.
Then, on Thursday, the court did maintain the position that Apple had violated the anti-steering injunction with its steep commission fees. However, the court also sided with the Cupertino tech giant, agreeing that the ban on all commissions was going too far.
The higher court said that even though Apple disagreed, most of the rules the lower court added do match the original injunction, just in a way that's a bit too broad. However, the part that bans commissions isn't a proper penalty for contempt.
Because of that, the court is overturning the key parts of the April 30 decision and sending the case back to the lower court to correct them. The rest of the April 30 decision stays in place.
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Obviously, that doesn't mean that Apple's entirely in the clear. The court wants Apple and Epic to sit down and negotiate a reasonable rate. Of course, the court can also do that for them, if needed.
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Until that happens, the Cupertino tech giant is not going to earn a commission from any sales that Epic Games or another third-party payment system makes.
There is another important change that went in Apple's favor, though. Apple is now allowed to stop developers from making their own buttons or links bigger, bolder, more noticeable, or more numerous than Apple's own.
Before, Apple was told it had to allow "plain buttons", which often looked like simple text links and were easy to overlook. The new decision creates a middle ground: developers can use real buttons, but they can't make them more eye-catching than Apple's.
Epic vs Apple: the background
The legal battle between Epic Games and Apple has been going on for several years and revolves around how app payments work on iPhones. It all started in 2020 when Epic tried to let players in Fortnite pay for in-game items directly, bypassing Apple's App Store fees. Apple responded by removing Fortnite from the App Store, and Epic sued, claiming that Apple's control over app payments was unfair.
In 2021, a court ruled mostly in Apple's favor but also said developers should be allowed to show links to alternative payment options. Over the next few years, appeals and legal battles continued. The courts generally sided with Apple on the bigger points, while Epic won smaller victories around allowing outside payment links. The U.S. Supreme Court declined to hear the case in 2024, leaving the previous rulings in place.
In short, the fight isn't over yet, but the appeals court ruling allows Apple to maintain some control over its App Store and its commissions, while still requiring negotiations with developers to ensure fair practices.
Epic vs Apple: a tug of war that's far from over
On one hand, Apple has every right to protect its platform and earn commissions on its store. On the other hand, developers want more freedom to offer alternative payment options and make their apps stand out. The latest ruling strikes a balance, allowing Apple to charge commissions while preventing developers from outshining Apple's own buttons and links.
Personally, it feels like the courts are trying to find a middle ground, but the system still heavily favors Apple. While Epic scored small victories, the larger picture is that Apple keeps most of its power over how apps make money.
Izzy, a tech enthusiast and a key part of the PhoneArena team, specializes in delivering the latest mobile tech news and finding the best tech deals. Her interests extend to cybersecurity, phone design innovations, and camera capabilities. Outside her professional life, Izzy, a literature master's degree holder, enjoys reading, painting, and learning languages. She's also a personal growth advocate, believing in the power of experience and gratitude. Whether it's walking her Chihuahua or singing her heart out, Izzy embraces life with passion and curiosity.
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