Epic Games vs. Apple Judgment Allows App Store Developers to Link to Alternative Payment Methods

A decision was reached today in the high-profile Epic Games v. Apple trial, with U.S. District Judge Yvonne Gonzalez Rogers ruling that Apple's anti-steering conduct is anti-competitive, and ruling in favor of Apple on all other counts.

app store blue banner epic 1
In a 185-page ruling, Judge Rogers said "the Court cannot ultimately conclude that Apple is a monopolist under either federal or state antitrust laws," but she said the trial "did show that Apple is engaging in anticompetitive conduct under California's competition laws." Rogers concluded that "Apple's anti-steering provisions hide critical information from consumers and illegally stifle consumer choice":

Having defined the relevant market as digital mobile gaming transactions, the Court next evaluated Apple's conduct in that market. Given the trial record, the Court cannot ultimately conclude that Apple is a monopolist under either federal or state antitrust laws. While the Court finds that Apple enjoys considerable market share of over 55% and extraordinarily high profit margins, these factors alone do not show antitrust conduct. Success is not illegal. The final trial record did not include evidence of other critical factors, such as barriers to entry and conduct decreasing output or decreasing innovation in the relevant market. The Court does not find that it is impossible; only that Epic Games failed in its burden to demonstrate Apple is an illegal monopolist.

Nonetheless, the trial did show that Apple is engaging in anticompetitive conduct under California's competition laws. The Court concludes that Apple’s anti-steering provisions hide critical information from consumers and illegally stifle consumer choice. When coupled with Apple's incipient antitrust violations, these anti-steering provisions are anticompetitive and a nationwide remedy to eliminate those provisions is warranted.

Judge Rogers thus issued a permanent injunction that requires Apple to let U.S. developers direct customers to payment options other than Apple's in-app purchase system:

Apple Inc. and its officers, agents, servants, employees, and any person in active concert or participation with them ("Apple"), are hereby permanently restrained and enjoined from prohibiting developers from (i) including in their apps and their metadata buttons, external links, or other calls to action that direct customers to purchasing mechanisms, in addition to In-App Purchasing and (ii) communicating with customers through points of contact obtained voluntarily from customers through account registration within the app.

Apple already announced last week that, starting in early 2022, it would allow developers of "reader" apps like Netflix, Spotify, and the Amazon Kindle app to include an in-app link to their website for users to set up or manage an account. If this ruling is upheld, however, Apple will be required to extend this allowance to all types of apps. The ruling also ensures that developers would be able to explicitly mention alternative payment options.

The saga began in August 2020, when Apple removed Fortnite from the App Store after Epic Games introduced a direct payment option in the app, in defiance of the App Store rules. In an orchestrated move, Epic Games promptly filed a lawsuit against Apple, accusing Apple of having a monopoly over the sale of apps and in-app purchases through the App Store. (See our timeline of events surrounding the trial for more details.)

Judge Rogers ruled that Epic Games shall pay damages equal to 30% of the $12,167,719 in revenue that Epic Games collected from users in the Fortnite app on iOS through the direct payment option between August 2020 and October 2020, plus 30% of any such revenue Epic Games collected from November 1, 2020 through the date of judgment, plus interest.

Apple is likely to appeal the decision. We've reached out to the company for comment and we will update this story if we hear back.

Update: Apple has issued the following statement, as shared by Nick Statt:

Today the Court has affirmed what we've known all along: the App Store is not in violation of antitrust law. As the Court recognized 'success is not illegal.' Apple faces rigorous competition in every segment in which we do business, and we believe customers and developers choose us because our products and services are the best in the world. We remain committed to ensuring the App Store is a safe and trusted marketplace that supports a thriving developer community and more than 2.1 million U.S. jobs, and where rules apply equally to everyone.

The court documents associated with the ruling are embedded below.

Popular Stories

iOS 18

iOS 18.4 Coming Next Week With These New Features for Your iPhone

Friday February 14, 2025 6:18 am PST by
The first iOS 18.4 beta for iPhones should be just around the corner, and the update is expected to include many new features and changes. Bloomberg's Mark Gurman expects the iOS 18.4 beta to be released by next week. Below, we outline what to expect from iOS 18.4 so far. Apple Intelligence for Siri Siri is expected to get several enhancements powered by Apple Intelligence on iOS...
iPhone 17 Roundup Feature 2

iPhone Design to Change 'Significantly' This Year

Monday February 17, 2025 7:09 am PST by
Apple is set to "significantly change" the iPhone's design language later this year, according to a Weibo leaker. In a new post, the user known "Digital Chat Station" said that the iPhone's design is "starting to change significantly" this year. The "iPhone 17 Air" reportedly features a "horizontal, bar-shaped" design on the rear, likely referring to an elongated camera bump. On the other...
Apple Maps 2024

Apple Maps Might Start Showing Ads

Sunday February 16, 2025 7:22 am PST by
Apple is "exploring" the idea of showing search ads in the Apple Maps app, according to Bloomberg's Mark Gurman. Back in 2022, Gurman said software engineering was "already underway" to display ads in the Apple Maps app, but Apple did not move forward with the idea at the time. Today, he said Apple is "giving this notion more thought" again. This time around, he said Apple has yet to...
Tim Cook Apple Park

10+ Announcements Apple Could Have Rolled Into a February Event

Saturday February 15, 2025 8:00 am PST by
Apple appears to have enough upcoming product announcements to justify a full event this month, yet all signs indicate these reveals will be handled through a series of press releases instead. There are a multitude of rumors from reliable sources about specific announcements in the coming weeks, so here's everything that Apple could have feasibly included in a hypothetical February event: ...
apple launch feb 2025 alt

What to Expect From the 'Apple Launch' Next Week

Thursday February 13, 2025 11:48 am PST by
Apple has yet to announce any new devices this year, but that could change starting next week. Apple CEO Tim Cook today said to "get ready" for a "launch" on Wednesday, February 19. "Get ready to meet the newest member of the family," said Cook, in a social media post. The post includes an #AppleLaunch hashtag, along with a short video featuring an animated Apple logo inside of a circle....
iPhone 17 Pro Render Front Page Tech

iPhone 17 Pro With All-New Camera Bar Design Allegedly Revealed

Thursday February 13, 2025 5:49 pm PST by
Apple's next-generation iPhone 17 Pro will feature three rear cameras arranged in a familiar triangular layout, but the cameras will be housed in an all-new rectangular camera bar with rounded corners, according to YouTube channel Front Page Tech. iPhone 17 Pro camera design render created by Asher for Front Page Tech In a video uploaded today, Front Page Tech host Jon Prosser said the camera ...
maxresdefault

The MacRumors Show: Apple Teases Its Next Major Product Launch

Friday February 14, 2025 9:38 am PST by
On this week's episode of The MacRumors Show, we discuss the imminent Apple product "launch" that is widely expected to be the fourth-generation iPhone SE. Subscribe to The MacRumors Show YouTube channel for more videos In a social media post on Thursday, Apple CEO Tim Cook teased an upcoming "launch" of some kind scheduled for Wednesday, February 19. "Get ready to meet the newest member of...
Apple 2025 Thumb 1

Two of Apple's Oldest Products Are Finally Getting Updated This Year

Friday February 14, 2025 6:03 am PST by
Apple released the HomePod mini in November 2020, followed by the AirTag in May 2021, and both still remain first-generation products. Fortunately, rumors suggest that both the HomePod mini and the AirTag will finally be updated at some point this year. Below, we recap rumors about the HomePod mini 2 and AirTag 2. HomePod mini 2 In January 2025, Bloomberg's Mark Gurman said Apple is ...

Top Rated Comments

JPack Avatar
45 months ago
Common sense decision by judge.

But there are far too many Stockholm syndrome posters here trying to defend Apple.
Score: 53 Votes (Like | Disagree)
mrat93 Avatar
45 months ago
Apple: *loses for the third time this month*

MR users: hahaha Epic is so pathetic. can’t wait for Apple to CRUSH them
Score: 45 Votes (Like | Disagree)
GizmoDVD Avatar
45 months ago
Really bad outcome for Epic. They wanted to be able to add their own store and collect 100% off everything and now they get...nothing.

To buy an app or iAP, its a tap of the button through Apple. This new way means for Epic, people would have to click a link, get re-directed to a website, enter in their credit card info (setup an account?) all for maybe a small discount

Epic wanted it side-by-side.

Huge massive blow to Epic, who also now owes millions to Apple.
Score: 44 Votes (Like | Disagree)
B-Mc-C Avatar
45 months ago
Surprised nobody is reporting that Apple is permitted to terminate Epic’s primary and subsidiary developer accounts. No more Fortnite on the App Store, no more development of Unreal Engine. Love it! See page 180 of the ruling, attached here.

Attachment Image
Score: 29 Votes (Like | Disagree)
Khalmoon Avatar
45 months ago
Apple should put a game in the epic game store, and then demand that Apple pay be an option for payment on that game.
Score: 23 Votes (Like | Disagree)
ugahairydawgs Avatar
45 months ago
Seems like the obvious middle ground. No alternate app stores (and the security issues that come with them), but instead a way to link out for payments that will likely only benefit the big fish (Amazon, Netflix, Disney, etc). For most users and small developers I don't know if this will change a lot.
Score: 19 Votes (Like | Disagree)