Court denies Apple’s request to pause ruling on App Store payment fees

In a significant legal setback for Apple, a U.S. court has rejected the company's request to delay a ruling that mandates it cease charging developers for transactions made through external links within their apps. This ruling means that Apple can no longer impose fees on developers when users opt to pay outside the App Store, leading to a potential decrease in Apple's revenue streams. The court stated, "Apple bears the burden of showing that the circumstances justify an exercise of our discretion," emphasizing that they were not convinced a stay was warranted. Epic Games' CEO Tim Sweeney celebrated the ruling, declaring that the 'Apple tax' era has come to an end. The decision was issued by the 9th Circuit Court, coinciding with the upcoming Worldwide Developer Conference (WWDC), where many anticipate Apple will address these changes. Last April, Judge Yvonne Gonzalez Rogers ruled against Apple, indicating that the company was violating a previous injunction prohibiting anticompetitive practices. As a result, Apple is now required to modify its App Store policies to allow developers to link to their own websites for purchases. Although Apple had previously permitted some external links, it continued to take a 27% commission and implemented what critics described as 'scare screens' for developers. The new ruling eliminates these practices, prompting major companies like Spotify and Amazon to update their apps to facilitate payments outside the App Store. Recently, Apple reported $1.3 trillion in billings and sales for 2024, noting that a staggering 90% of these transactions did not generate commission revenue for the company.