This is the end of the App Store as we knew it: Apple has lost justice

Apple wins billions of dollars with the App Store, but income related to the application store could decrease sharply in the coming months. Already forced to authorize alternative methods of distribution in the European Union, under Digital Markets Act, the Californian brand saw its economic model take a serious blow on April 30, by decision of American justice.

As part of the Epic Games trial c. Apple, which the creator of the iPhone overall won in 2021, Apple received the obligation to authorize developers to include links in their applications referring to external payment systems. The brand has done so, but has established a commission of 27 %, versus 30 % on the App Store. A dissuasive system for developers, who earned him a challenge by Epic Games.

For judge Yvonne Gonzalez Rogers, Apple a “Deliberately violated” the injunction issued in 2021. American justice qualifies this tax as 27 % of a « insubordination » And accuses Apple’s management of having lied under oath, which could cause new proceedings for the brand. Apple now has the obligation to authorize payments outside the App Store with 0 % commission.

Spotify, Netflix et Fortnite will throw oneself at the opportunity

Strategically speaking, Apple may have gone too far. With its 27 %tax, the brand did not meet the requirement for the opening of American justice, which had nevertheless decided in its favor despite the many requests from the studio. This excess could cost him dearly.

As of today, Apple has the obligation to make these changes on the App Store in the United States (and possibly elsewhere, since the EU already has a different policy for example):

• Apple is prohibited from imposing a commission or costs on purchases made by consumers outside of an application.
• Apple can no longer restrict the style, formatting or placement of the links of developers leading to external purchase options (the brand forced a dissuasive display today).
• Apple should not block or limit “the use of buttons or other calls for action” inciting users to use these links.
• Apple can no longer dissuade consumers from leaving the application via warning screens.

Concretely, with the changes required by American justice, a giant like Spotify can display on the home page “ Subscribe with a promotion from spotify.com, without giving any Euro to Apple, click here to access the offer ». Apple no longer has the right to control the link or take money from Spotify: he must let him do what he wants. Otherwise, Spotify will be able to seize justice. The streaming giant has already published an update operating its new rights. He ends 17 years of Apple’s absolute control over his store.

In response to American justice, Apple has updated its conditions of use. The brand now allows developers to add external links and encourage users to click on it in the United States.

Tim Sweeney, the boss of Epic Games, was strongly welcomed for this victory, whom he considers as his (remember that Epic lost the majority of his requests against Apple). He announced the return of Fortnite On the American app Store in early May, with integrated purchases outside the Apple store. It is the biggest victory in the company since 2020.

A change only in the United States for the moment

For Apple, this defeat represents an important setback. The whole model of the App Store could capsize if the developers set up a system to subscribe from Paypal or Apple Pay, without giving money to Apple. Billions of dollars are threatened, even if Apple said during the trial that he could not specifically quantify the income from the App Store.

Unsurprisingly, Apple therefore reserves these changes in the United States At first, which will therefore ironically benefit from a more open App Store than in Europe (with us, developers must choose between the old strict conditions and more open news, but with commissions of 10-20 %). A way to continue to control the application store, since developers will have to keep integrated purchases for other countries. Some also wonder about the legality of this decision: as an American company, does Apple have the right to apply an American court decision only where it wishes?

In any case, Epic Games’ victory is very bad news for Apple, which had previously been very well out in this thorny file. The App Store is finally open to bypassing the 30 %tax, with already first major applications ready to take advantage of it.

American justice reproaches the brand for having been too stingy by refusing to apply the rules from 2021. Apple could technically have preserved the control of the App Store while making a gesture for the developers, but its decision to establish a tax of 27 % led it to this conviction to increase to 0 %.