US ruling: Apple is not entitled to a share of web purchases from apps

Last Wednesday, the US judge who ruled in favor of Apple in 2021 changed her mind: The company is not entitled to a share of the revenue generated by developers via apps that were obtained from Apple's App Store. The ruling marks a new turning point in the legal dispute between Epic Games and Apple, which has been ongoing since 2020.

Four years ago, Judge Yvonne Gonzalez Rogers ruled that Apple was allowed to charge fees to third-party developers even if their apps complete transactions via other channels – such as a browser –. In other words, in a very subtle sense, these are not in-app purchases because the transaction is not processed via the app itself or its payment mechanisms. In this case, Apple has so far charged a rate of 27 percent, whereas the rate for direct in-app purchases is usually 30 percent.

Judge: "Apple lied to me"

Previously, the judge wrote in her 80-page reasoning (PDF), Apple had not demanded a share for these so-called off-app purchases. The new proceedings undermine the purpose of the 2021 agreement, and Rogers also states that he was simply lied to in court at hearings in the 2024 case. Apple's Chief Financial Officer Alex Roman had stated at the time that he had not examined the costs of alternative payment options, but the 27 percent commission was proof that this had been done.

According to Rogers, the aim was not for Apple to allow off-app purchases, but then take what it loses through in-app fees in other ways. Off-app commissions were also controversial within Apple – and were apparently considered legally risky from the outset. The judge now also wants to initiate criminal proceedings against Apple. She writes: "In stark contrast to Apple's initial testimony in court, recent business documents show that Apple knew exactly what it was doing and chose the most anti-competitive option at every opportunity." This accusation goes even further than the "malicious compliance" allegation made by the EU last year regarding the practices of the App Store.

Fortnite is coming back to the US app store

As Bloomberg reports, Apple intends to comply with the new order for now and appeal. The company has yet to make a public statement. Not so for the other side: Epic co-founder Tim Sweeney celebrated the ruling on X and announced his intention to distribute the game "Fortnite" via Apple's App Store in the USA in the coming week.

Sweeney also literally made Apple a "peace offer": if the iPhone company implements the court's new ruling worldwide, Epic wants to bring Fortnite back to all app stores and refrain from further legal disputes. Apple and Epic are fighting over the same issue in the EU and Brazil, among other countries. Incidentally, Epic is a direct competitor of Apple, which has been selling software itself via its Epic Games Store since 2018. Fortnite is the most important revenue driver for Epic, driven primarily by purchases via the app.

(nie)