- The Supreme Court allowed an order against Apple’s iPhone app store to proceed.
- The ruling stems partly from Epic Games’ antitrust lawsuit attempting to avoid Apple’s 30% cut by adding direct payment links.
- Mandated changes in policy and payments threaten billions in Apple’s annual app store revenue.
The U.S. Supreme Court declined Apple’s appeal Tuesday, allowing a lower court order to proceed that may loosen the tech giant’s control and commissions over its highly lucrative iOS app store.
The ruling stems from Epic Games’ broader antitrust lawsuit against supposed app store monopolies.
Epic wanted to elude Apple’s 30% commission
While Apple defeated Epic’s claims it violated federal antitrust laws, the Supreme Court permitted California state rulings that certain iPhone app store restrictions constitute unfair competition to move forward. This lifts a hold on requiring Apple to allow alternative in-app payment links beyond its system.
Epic attempted to circumvent Apple’s up to 30% commission fees in 2018 through customized payment options, leading to the removal of its Fortnite app. But the court order could now make it easier for developers to avoid Apple’s cut, which generated estimated billions annually.
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Court’s decision shows partial victory for Epic
The Supreme Court’s refusal to hear Apple’s appeal serves as a partial victory for Epic in its parallel battles against mobile app store dominance. Last month, Epic separately won a trial against Google’s Android Play Store, mandating changes there also.
Commissions and competition in mobile app marketplaces face increasing scrutiny. The ruling compels Apple to contend with major policy shifts in its services ecosystem moving forward.
Details remain pending, and third-party payment links clearly threaten its double-digit billions in annual App Store revenue.
