Apple updates app store policy, permitting third-party payments 'without tax' following court loss

Apple updates App Store rules, cutting its fee for US third-party payments.

: Apple has modified its App Store policies to allow third-party payments without the typical 'Apple Tax' following a legal defeat. This change impacts US Store apps only, granting app developers the ability to direct users to external payment options without incurring fees. Spotify celebrated this as a consumer victory, immediately implementing an app update reflecting the new policy. Despite compliance, Apple plans to appeal the judicial decision condemning its previous practices.

Apple has revised its U.S. App Store policies to allow developers to include external payment links in their apps. This change follows a key court ruling in the Epic Games v. Apple case, which mandated that Apple must permit alternative payment methods outside the App Store. This effectively bypasses Apple's traditional 30% commission fee, promoting a more competitive and open digital marketplace.

Previously, Apple attempted to comply with the 2021 injunction by adding a 27% fee on external transactions and showing deterrent warnings to users. However, U.S. District Judge Yvonne Gonzalez Rogers ruled that these tactics violated the injunction. She found Apple in willful contempt of court and referred the company to federal prosecutors for potential criminal contempt charges.

This legal development benefits app developers and content creators who have long pushed for more autonomy and reduced platform fees. Companies like Spotify have already been approved to update their apps with external payment methods. Epic Games also announced intentions to bring Fortnite back to iOS, pending Apple's full compliance with the ruling.

Although Apple states it will comply, the company also plans to appeal the decision. The case’s outcome could have major implications on the future of app store regulations and digital commerce. If upheld, the ruling might significantly reduce Apple’s App Store commission revenue and force changes across other tech platforms as well.

This moment represents a turning point in the broader debate over app store monopolies and developer rights. Developers, regulators, and tech companies worldwide are watching closely as the ruling shapes the balance of power in digital marketplaces.

Sources: AP News, NY Post, Polygon, Reuters

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