Apple has been forced to change its App Store rules following a U.S. court decision that strikes a blow to the company’s grip on digital transactions.
The court ruling mandates that Apple allow apps to link users to external websites where they can make purchases, bypassing Apple’s App Store fees. The decision comes after years of court cases, notably with Epic Games, which brought the issue to light in 2020.
In a recent update, Apple confirmed it was complying with the court’s orders, acknowledging the legal changes in its App Review Guidelines.
“The App Review Guidelines have been updated for compliance with a United States court decision regarding buttons, external links, and other calls to action in apps,” Apple stated in a blog post.
This change follows a ruling that requires Apple to stop interfering with apps’ abilities to direct users to external payment systems, a move that will disrupt Apple’s longstanding 30% commission fee.
This case began when Epic Games challenged Apple’s monopoly on in-app transactions. In 2021, Epic won a key injunction, compelling Apple to open up its platform by allowing developers to link to external sites where users could complete purchases.
Apple fought back with appeals, and although it allowed limited external links last year, it still imposed a 27% commission and added what critics called “scare screens” to deter users from using external payment methods.
Now, however, with this week’s ruling, those scare tactics are gone. Apple has been instructed to stop displaying any warnings designed to dissuade users from using external payment systems.
This includes removing guidelines on how links and buttons should be presented. It’s a massive blow to Apple’s control over digital transactions, especially since it now faces the challenge of finding ways to compete on an even playing field with other payment services.
Spotify, another company embroiled in a similar battle with Apple, has already acted on the new ruling. The music streaming service has submitted a version of its app that includes links allowing users to purchase subscriptions directly from Spotify’s website, bypassing Apple’s commission.
Despite the ruling, Apple is not satisfied. “We strongly disagree with the decision. We will comply with the court’s order and we will appeal,” the company said in a statement, making it clear that it will continue its fight in court.
However, this ruling could have far-reaching consequences for Apple’s dominance in the app market. Epic Games CEO Tim Sweeney called the decision “a significant win for developers and consumers” and celebrated the return of Fortnite to iOS for the first time in over four years.
With this ruling, Apple’s monopoly on in-app payments has been broken, and the playing field has changed, allowing developers more freedom.
