Apple has officially lost its legal battle to continue charging developers a hefty 27% fee for payments made outside of its App Store. The 9th Circuit Court has denied Apple’s request for a stay on the prior ruling that found the tech giant in ‘willful violation’ of a 2021 injunction meant to curb its anticompetitive practices.
Effective immediately, Apple must cease its so-called ‘Apple Tax’ on alternative payment systems.
The court’s decision marks a huge win for both developers and users, who have long criticized Apple’s control over in-app payments and the accompanying scare tactics. Until now, Apple required iOS developers to use its own payment system or face steep fees-even when merely linking out to a third-party payment provider. It also employed ‘scare screens’ to warn users about the ‘risks’ of external payments, which now must be removed.
Major platforms like Spotify and Amazon have already begun updating their apps to comply with the new regulations, enabling users to bypass the App Store for subscriptions and purchases. This could lead to broader changes in the app ecosystem as developers gain more freedom to monetize their products without fear of punitive fees.
While Apple has filed an appeal, the current ruling stands, signaling a shift in how tech monopolies are treated in the marketplace. Some users express concern that Apple might try to shift the financial burden to consumers, perhaps through higher device prices or new service fees. But for now, the end of the Apple Tax is a celebratory moment for fair competition, transparency, and consumer rights.
This ruling not only sends a message to Apple but could ripple through the entire mobile software industry, influencing how smaller app stores operate and how governments around the world regulate digital markets. Whether it sets a new standard or sparks new loopholes remains to be seen-but one thing is clear: the walls around Apple’s walled garden are starting to crack.