Latest news with #AppleTax
GSM Arena
4 days ago
- Business
- GSM Arena
Apple loses in court, has to stop charging developers for payments outside of the App Store
Apple's request for a stay on a US court's ruling has been denied, so it has to immediately stop charging developers for payments made outside of the App Store. The company filed an emergency motion last month seeking a stay on a ruling in April, which found Apple in "willful violation" of a 2021 injunction that barred it from forcing anticompetitive pricing. It's also filed an appeal against that ruling, which is yet to be finalized, so things could still change in the future. Apple's stay is denied by the 9th Circuit Court. The long national nightmare of the Apple tax is ended. May next week's WWDC be the Apple-led celebration of freedom that developers and users have long deserved. — Tim Sweeney (@TimSweeneyEpic) June 4, 2025 But for now, Apple needs to stop taking a 27% fee on apps getting paid through non-Apple payment mechanisms, which amazingly it has been doing since it started allowing apps to link out and not handle payments exclusively through Apple. The company also has to eliminate the 'scare screens' it shows users before letting them use third-party payment providers for iOS apps. Spotify and Amazon are already making changes to their apps to reflect the new situation, so now you can pay for your purchases and subscriptions outside of the App Store without any 'Apple Tax'.
TechCrunch
4 days ago
- Business
- TechCrunch
Court denies Apple's request to pause ruling on App Store payment fees
A U.S. court denied Apple a stay on a ruling that requires the company to stop charging developers for payments made outside the App Store through links in apps. This means in the U.S., Apple will no longer be able to charge developers a fee when customers click on a link within their app that takes them outside the App Store for payment, resulting in a potential loss of revenue to the company. 'Apple 'bears the burden of showing that the circumstances justify an exercise of [our] discretion,'' the court said in a filing. 'After reviewing the relevant factors, we are not persuaded that a stay is appropriate,' it added. Epic Games' head Tim Sweeney applauded the court's ruling and said, 'The long national nightmare of Apple tax is ended,' in a post on X. Apple's stay is denied by the 9th Circuit Court. The long national nightmare of the Apple tax is ended. May next week's WWDC be the Apple-led celebration of freedom that developers and users have long deserved. — Tim Sweeney (@TimSweeneyEpic) June 4, 2025 In April, Judge Yvonne Gonzalez Rogers ruled in favor of Epic Games, saying that Apple was in 'willful violation' of a 2021 injunction that barred the company from forcing anticompetitive pricing. This essentially means that Apple must change the App Store rules and allow developers to freely link to their website for purchasing digital goods. In response, Apple filed an emergency motion last month seeking a stay on the court's ruling. The company also filed an appeal against the ruling around the same time. Last year, Apple began allowing other apps to link out and use non-Apple payment mechanisms, but it still took a 27% fee and added what critics called 'scare screens.' With the new ruling, both practices will be eliminated. Large companies are already making changes to their apps, with Spotify and Amazon publishing new updates that let users pay for their subscriptions and purchases outside the App Store. Techcrunch event Save $200+ on your TechCrunch All Stage pass Build smarter. Scale faster. Connect deeper. Join visionaries from Precursor Ventures, NEA, Index Ventures, Underscore VC, and beyond for a day packed with strategies, workshops, and meaningful connections. Save $200+ on your TechCrunch All Stage pass Build smarter. Scale faster. Connect deeper. Join visionaries from Precursor Ventures, NEA, Index Ventures, Underscore VC, and beyond for a day packed with strategies, workshops, and meaningful connections. Boston, MA | REGISTER NOW With the Worldwide Developer Conference (WWDC) slotted for next week, this is a big blow to Apple. Earlier this week, the company published a report saying that it generated $1.3 trillion in billings and sales in 2024. It added 90% of those sales didn't generate commission revenue for Apple.
Phone Arena
10-05-2025
- Business
- Phone Arena
An "epic" comeback is in the making as Fortnite is returning to the App Store
By including this option with Fortnite, Epic was allowing game players to make in-app purchases at lower prices through Epic. That's because the game developer was able to bypass the 15%-30% "Apple Tax" that the tech giant was collecting from developers for such purchases. Recently, a judge ruled that Apple must stop collecting fees for in-app purchases and subscriptions made outside the App Store. Epic's celebration following this ruling included the announcement of Fortnite's App Store return. Epic also announced that it will not collect a commission from developers on the first $1,000,000 in revenue an app generates each year. Tim Sweeney, Epic's CEO, said that Fortnite will be returned to the App Store worldwide if Apple allows the judge's ruling to take effect around the world. Apple, as you might suspect, has not only filed an appeal but also filed an emergency motion asking the federal appeals court to temporarily hold off on making any changes to the App Store's operations and how it collects payments. Epic responds to Apple's request to pause any changes changing how the App Store collects payments. | Image credit-X Judge Yvonne Gonzalez Rogers issued a contempt order against Apple for failing to follow the order she made during 2021's Epic v. Apple case. That order demanded that Apple stop its anti-competitive actions and pricing and allow App Store users to pay using payment options outside the App Store. Last week, the judge said that Apple is purposely flouting her demands. On Wednesday, Apple told the judge that blocking Apple from charging commission on purchases made outside the App Store "will cost Apple substantial sums annually." Additionally, the tech giant said that restrictions against it are based on conduct that has not been found to be unlawful. The company also said, "A federal court cannot force Apple to permanently give away free access to its products and services, including intellectual property." Epic, on the other hand, said that since Judge Yvonne Gonzalez Rogers issued her contempt ruling, "Apple has faced a surge of genuine competition as developers have updated their apps with better payment methods, better deals, and better consumer choice." Earlier this month, Apple announced that it will allow developers to add links to apps that take consumers outside the App Store to make payments allowing them to skip Apple's payment system thus avoiding the Apple Tax. This is exactly what Judge Gonzalez Rogers wanted with her initial ruling in September 2021. Apple subsequently allowed developers to include a link that would send users out of the App Store to make payments but it still charged developers a 27% commission on those payments. Apple also warned users leaving the App Store that once these users were sent to the web, Apple was no longer responsible for the user's privacy or security. This was considered a tactic by Apple to scare users away from using payment options outside of the App Store.
Forbes
07-05-2025
- Business
- Forbes
Apple's Infamous App Store Tax Is Collapsing
Apple's infamous app store tax is collapsing (Photo by) Getty Images On April 30, 2025, Apple faced a seismic legal setback when U.S. District Judge Yvonne Gonzalez Rogers ruled that the tech giant could no longer impose its notorious "Apple Tax" on developers who direct users to external payment systems. This monumental decision, emerging from the long-fought Epic Games v. Apple battle, significantly shifts power dynamics in digital marketplaces, emboldening developers who have long criticized Apple's 27% commission as unjustified and anti-competitive. Spotify's initial pushback in 2019 against Apple's policies, often dismissed by Apple as self-serving and mislead, turned out to be prophetic. Far from just "sour grapes," Spotify had identified a fundamental issue: Apple was simultaneously competitor and gatekeeper, distorting competition by levying hefty fees on rivals. This ruling confirms what developers have argued for years—that Apple's restrictive policies suppress innovation rather than protect consumers. Global Regulation Catches Up The latest U.S. court ruling is far from an isolated setback to Apple. It's part of a global wave of regulatory scrutiny challenging the dominance of large tech platforms. South Korea led the way in 2022, mandating Apple and Google to allow third-party payment methods in mobile apps. Europe amplified this momentum with the Digital Markets Act (DMA), which took effect in 2024, explicitly classifying Apple as a 'gatekeeper' and compelling it to open its platform to alternative app stores, sideloading, and third-party payments. Such international regulatory alignment signals the end of an era for Apple, whose business model thrived precisely because of fragmented global policies. Apple adeptly leveraged differences between jurisdictions to maintain strict control over its ecosystem, extracting billions in revenue. But regulators worldwide are now converging around the principle that platform control should not equate to monopolistic gatekeeping. China: Apple's Last Fortress? China stands as one of Apple's largest and most lucrative markets, generating approximately 48 billion RMB (around $6.6 billion) from App Store fees alone in 2023. Yet, paradoxically, China endures the harshest implementation of Apple's restrictions—no sideloading, no alternative payments, and the unwavering 30% commission. Tensions peaked in 2024 when Apple threatened to remove hugely popular apps like WeChat and Douyin for bypassing its payment system, sparking widespread outrage across Chinese social media. By early 2025, Beijing responded decisively, summoning Apple for discussions—a significant development indicating the Chinese government may no longer tolerate Apple's inflexible policies. Tim Cook's frequent diplomatic visits to China, over 20 since 1996, with four just last year, highlight how crucial China is to Apple's strategy. His careful cultivation of relationships insulated Apple from much of the regulatory pressure other U.S. tech giants have faced there. But this protective layer appears thinner than ever. As judge Yvonne Gonzalez Rogers writes that finance VP Alex Roman's testimony was 'replete with misdirection and outright lies' on the question of 'when' Apple decided to impose a 27% commission on outbound transactions. Apparently, Apple angered the US judge and the regulation behind it. It's also a wake-up call for other national regulators around the world who have trusted Apple. As the global consensus against Apple's policies solidifies, China could soon pivot from being Apple's most compliant market to its biggest regulatory headache. The Unraveling of Apple's Global Strategy Apple's business model has depended on carefully navigating geopolitical landscapes. By positioning itself as a key economic player in both the U.S. and China, Apple avoided meaningful scrutiny for years. However, the April 2025 U.S. ruling and similar regulations in Europe and South Korea have disrupted this delicate balance. The DMA represents nothing short of a regime change. Europe's classification of Apple as a "gatekeeper" carries significant weight, enforcing substantial penalties—up to 10% of global revenue—for non-compliance. This legal landscape leaves Apple little room to maneuver. No longer can it claim the protective mantle of user security or experience as justification for its stringent controls. The End of a Rent-Seeking Era Initially, Apple's rigorous controls were defensible. The nascent App Store provided a secure and standardized experience in a burgeoning market. Over time, however, what began as protection evolved into profit extraction. The App Store morphed into a digital toll booth, where developers faced a stark choice: pay hefty commissions or lose access to Apple's vast user base. This transformation from innovation facilitator to rent-seeker has become increasingly transparent. The recent legal and regulatory actions signify a broader shift in perception among policymakers, developers, and consumers. Apple's defenses—privacy, security, and user experience—are losing credibility as regulators recognize these arguments often mask monopolistic tendencies rather than genuine consumer protection. What Comes Next? Apple's grip won't vanish overnight. Its App Store remains incredibly profitable, deeply integrated into billions of devices worldwide. However, the assumptions underpinning Apple's dominance—primarily that no one could successfully challenge its practices—are fundamentally undermined. With major markets like the U.S., EU, South Korea and Japan already enforcing changes, and China signaling potential moves, Apple faces unprecedented pressure. The question now isn't whether Apple will adapt, but how quickly and how drastically it must change. This moment represents not merely a loss of commissions but a broader power shift, determining who controls digital infrastructure and who profits from it. Apple's resistance will likely continue, driven by financial imperative and institutional inertia. Yet, the writing is on the wall. Developers globally, encouraged by recent successes, are increasingly vocal, challenging Apple's narratives about safety and quality control. Regulators are emboldened, no longer willing to allow unchecked corporate control over digital marketplaces. Ultimately, Apple's infamous "tax" on developers appears unsustainable. As global regulatory landscapes align against monopolistic behaviors, Apple must reconsider its business strategies fundamentally. The era of unchecked digital toll gates is ending, leaving Apple with fewer safe havens to enforce its stringent policies. The "Apple Tax" is running out of places to hide.
Time of India
05-05-2025
- Business
- Time of India
Apple files appeal after court order on App Store fees in Epic Games case: Report
Apple has filed a notice of appeal to the Ninth Circuit after a major setback in its legal fight with Epic Games, reports The Verge. The appeal challenges a ruling from last week that bars the iPhone maker from arguing developers fees on purchases made outside the App Store. Ruling in favour of Epic Games, Judge Yvonne Gonzalez Rogers said that Apple's actions breached the earlier court order. She also criticized Apple's conduct during the case, saying that Alex Roman, Apple's Vice President of Finance, lied under oath. In addition, Judge Rogers sanctioned Apple for delaying the case by misusing attorney-client privilege claims. Apple's latest appeal aims to overturn these rulings and defend its current App Store practices. Apple vs Epic Games: The background by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Start Here - 2025 Top Trend Local network access control Esseps Learn More Undo The legal battle between Epic Games and Apple began in 2020 when Epic Games tried to bypass Apple's in-app payment system in its popular game Fortnite. Epic Games then introduced a direct payment option inside the app, which allowed users to pay Epic Games directly — avoiding Apple's 30% commission on App Store purchases. Apple responded by removing Fortnite from the App Store, leading Epic Games to sue Apple. Epic argued that Apple was running a monopoly by forcing developers to use its payment system and by restricting app distribution to only the App Store on iPhones. In 2021, U.S. District Judge Yvonne Gonzalez Rogers ruled that Apple must allow developers to direct users to external payment methods, effectively banning Apple's "anti-steering" rules. However, the court did not find Apple to be a monopoly under federal antitrust law, and Epic was ordered to pay damages for breaching its contract with Apple. Last week, judge Gonzalez Rogers ruled that Apple must immediately stop charging commissions on purchases made outside its App Store, dealing a major blow to the tech giant's control over its lucrative app ecosystem. Epic Games CEO Tim Sweeney then celebrated the decision, declaring on social media: "NO FEES on web transactions. Game over for the Apple Tax. Apple's 15-30% junk fees are now just as dead here in the United States of America as they are in Europe."
