Adapted by:
Javier Lacort
Senior WriterI write long-form content at Xataka about the intersection between technology, business and society. I also host the daily Spanish podcast Loop infinito (Infinite Loop), where we analyze Apple news and put it into perspective.
Alba Mora
WriterAn established tech journalist, I entered the world of consumer tech by chance in 2018. In my writing and translating career, I've also covered a diverse range of topics, including entertainment, travel, science, and the economy.
In her Wednesday ruling, Federal Judge Yvonne Gonzalez Rogers accused Apple of lying under oath. She also ruled that the company must eliminate fees for external payments, potentially leading to significant changes in the app market.
Why it matters. The judge ordered Apple to stop charging fees on external purchases. Additionally, Gonzalez Rogers lifted restrictions on how developers can guide users toward alternative payment methods. This decision could mark a pivotal moment in the app industry and significantly reduce Apple’s annual revenue by billions.
The ruling dismantles Apple’s strategy. The company sought to bypass a 2021 court order by imposing a 27% fee on external purchases. The judge also accused Apple of showing “scare screens” to discourage users from opting for alternatives outside its ecosystem.
Behind the scenes. Gonzalez Rogers said Luca Maestri, Apple’s VP of finance at the time, had “outright lied under oath.” She referred the case to the U.S. Attorney for the Northern District of California for a possible investigation into criminal contempt. Court documents reveal that Apple was fully aware of its actions and “at every turn chose the most anticompetitive option.”
The judge also disclosed that Cook ignored the advice of Phil Schiller, an Apple executive who oversees the App Store, who recommended complying with the original order without charging fees. “Cook chose poorly,” the judge said in her ruling.
Context. The conflict began in 2020 when Epic Games implemented its own payment system in Fortnite, resulting in its immediate removal from the App Store. Apple won most aspects of the initial litigation. However, the judge determined that the company was restricting competition by preventing developers from informing users about alternative payment options.
The recent ruling comes after years of legal battles. More importantly, it undermines the business model that generates a significant portion of Apple’s nearly $100 billion annual revenue from its Services division.
What’s happening? Epic Games has announced that Fortnite will return to the U.S. App Store “next week.” CEO Tim Sweeney has put forward a “peace proposal.” He said, “If Apple extends the court’s framework worldwide, we’ll return Fortnite to the App Store worldwide and drop current and future litigation on the topic.”
In the meantime, Spotify has already released an update to its app that allows U.S. users to view subscription prices. The update also enables them to access external purchase links and switch between different plans without using Apple’s payment system.
Spotify describes this ruling as “the most consequential action to date” against Apple’s anti-competitive practices.
The big question. Will this ruling change how all app stores operate? Epic is positioning itself with an attractive offer. Starting in June, developers will pay no commissions on the first $1 million in revenue generated through Epic’s store.
The Epic Games v. Apple case could mark a turning point, especially as it adds to the regulatory pressure Apple already faces in other countries. For users, this means more payment options, potential discounts, and a more transparent experience when purchasing digital content.
Image | James Yarema
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