Apple faced harsh criticism from Judge Yvonne Gonzalez Rogers this week for violating a 2021 injunction in the Epic Games case. Judge Rogers has presided over multiple lawsuits against Apple by Epic Games, challenging Apple’s control of the App Store. In her 2021 ruling, she mostly sided with Apple but acknowledged the anticompetitive nature of Apple’s anti-steering rule.
This rule prevents developers from mentioning alternative payment methods outside of Apple’s control, forcing apps like Netflix and Spotify to either pay a significant cut of their revenue to Apple or provide users with confusing sign-in screens. Judge Rogers deemed this rule anticompetitive under California law in her 2021 ruling.
Despite the delay, the injunction against Apple’s anti-steering rules finally came into effect in 2024 after the Supreme Court declined to hear Apple’s final appeal. In response, Apple introduced a 27% commission on external purchases, requiring developers to seek permission from Apple to use non-Apple payment methods.
This move was met with criticism, with some calling it greedy and damaging to Apple’s reputation. Epic Games CEO Tim Sweeney denounced it as “malicious compliance” and launched another lawsuit against Apple. Judge Rogers reinforced the injunction in a recent ruling, accusing Apple of deception and imposing new restrictions to prevent further anticompetitive practices.
Implications for the App Store
The updated injunction prohibits Apple from charging commissions on external purchases and tracking such transactions. However, it does not mandate allowing developers to implement their own in-app purchasing solutions. Apple has announced its compliance with the injunction but plans to appeal it.
The changes primarily affect apps on the US storefront, allowing them to include external links without Apple’s permission. The revised guidelines require these links to open in the default browser and prohibit Apple from discouraging users from using external payment methods. Apps may still need to offer in-app purchases corresponding to their external offerings.
