Apple's App Store Shake-Up: Court Rejects Pause on Epic Games Payment Ruling

SAN FRANCISCO, California, June 5, 2025 - The 9th U.S. Circuit Court of Appeals has denied Apple's emergency motion to pause a court-ordered reform of its App Store policies, compelling the tech giant to allow developers to direct users to alternative payment methods outside its platform. This ruling, issued on June 4, 2025, marks a pivotal moment in the ongoing legal saga between Apple and Epic Games, which began in 2020 over App Store commission practices.

The decision reinforces a 2021 anti-steering injunction, enabling developers like Epic Games, Spotify, and Amazon to bypass Apple's 15-30% commission fees, potentially reshaping the app economy.

Anti-Steering Ruling and Apple's Defiance

In April 2025, Judge Yvonne Gonzalez Rogers ruled that Apple willfully violated a 2021 injunction by imposing new restrictions and a 27% fee on developers using external payment links, actions deemed "anticompetitive" and designed to circumvent the court’s order. The injunction, stemming from the Epic Games lawsuit, prohibits Apple from preventing developers from informing users about alternative payment options.

Apple's attempt to maintain revenue through these fees was struck down, with the judge referring the company's conduct to federal prosecutors for potential criminal contempt charges. The 9th Circuit's rejection of Apple's motion to pause these changes ensures developers can continue linking to external payment systems without Apple’s oversight or commissions.

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Supreme Court’s Role and Legal Timeline

The legal battle reached a critical juncture in January 2024, when the U.S. Supreme Court declined to hear appeals from both Apple and Epic Games. The decision upheld the 2021 district court ruling, which largely favored Apple but enforced the anti-steering provision. This lifted a stay on the injunction, forcing Apple to allow external payment links. Epic Games, while disappointed with the dismissal of its broader antitrust claims, celebrated the ruling as a victory for developers’ rights to direct customers to cost-effective web-based payment options.

The ongoing dispute saw further tension in May 2025, when Apple initially delayed approving Epic’s attempt to relaunch Fortnite on the App Store, prompting additional legal motions.

Did You Know?
The Epic Games v. Apple lawsuit has influenced global app store policies, with countries like South Korea and the EU enacting laws to curb restrictive payment practices since 2021.

Impact on Apple’s App Store Revenue

Apple’s App Store commission structure, traditionally set at 30% for app transactions and subscriptions (dropping to 15% for subscription renewals after the first year), generated over $10 billion in U.S. revenue in 2024, per industry estimates. The Small Business Program offers a 15% rate for developers earning under $1 million annually, while EU regulations under the Digital Markets Act impose a 17% commission plus a €0.50 per-installation fee after the first million.

The court’s ruling, by allowing developers to bypass these fees, threatens Apple’s revenue stream, with the company estimating potential losses of “hundreds of millions to billions” annually. Developers like Amazon have already updated apps, such as the Kindle app’s new “Get Book” button linking to Amazon.com, to leverage this change.