App Store Must Allow External Payments Without Charging Commission

 In a historic turn of events that has the potential to redefine the future of the mobile app economy, Apple has been directed by a U.S. District Court to modify App Store policies in response to a landmark ruling in the long-pending antitrust case filed by Epic Games. According to the latest court order, Apple is now compelled to permit developers to incorporate external links and third-party payment systems within their iOS apps without charging a commission.

This move represents a turning point in the way developers can charge for their apps on the iPhone and iPad and ends Apple's long-standing tradition of charging up to 30% commission a fee that is widely known as the "Apple Tax.".

This courtroom battle started in 2020 when Epic Games, the maker of the hit game Fortnite, publicly defied Apple's App Store guidelines by adding a direct payment system within the iOS version of its game. Apple retaliated by pulling Fortnite from the App Store, and Epic struck back with a lawsuit, alleging that Apple was operating a monopoly and being anti-competitive.

The suit quickly gained prominence in the larger debate regarding the influence that large technology companies exert over developers, and especially in the mobile space. Apple's policy of taking a 27–30% cut from in-app purchases, and refusing to permit alternative payment options, was the main issue at hand.

 After years of legal wrangling, the latest court decision in 2025 delivers a big blow to Apple’s control over in-app payments on iOS. Here’s what the court ordered:

• Apple must allow external links, buttons, and call-to-actions that lead users to third-party payment systems.
• Apple cannot charge any commission (27% or 30%) on purchases made outside of its platform.
• Apple cannot use scare tactics, such as popups or warnings that deter users from using external links.

Essentially, Apple has lost its ability to enforce exclusive control over app purchases and subscriptions made via external payment gateways.

In response to the ruling, Apple revised its App Review Guidelines and issued a public statement affirming that it would adhere to the court's ruling. Apple did, however, make it quite clear that it firmly disagrees with the ruling and will appeal the judgment. 

“We respectfully disagree with the court’s ruling and are planning to appeal. Nonetheless, we are making the required changes to comply with the law while maintaining the best user experience and platform integrity.”

Apple also reiterated that its in-app purchase system is superior in terms of security, privacy, and user trust, and claimed that allowing external payments could compromise those elements. 

The recent court decision signals the start of a new era for iOS developers one that finally puts an end to what many have long referred to as the "Apple Tax." Until now, Apple charged a 30% commission on most in-app purchases and subscriptions through its platform. Even after developers had obeyed an earlier court ruling and implemented external payment choices, Apple continued to charge a 27% commission in certain instances, drawing widespread criticism from developers and digital companies alike.

These fees were frequently seen as not only high, but usurious particularly on smaller developers and startups looking to expand. The new ruling turns the tables. It makes it plain that Apple is not allowed to charge any commission on payments made using external payment systems. In short, if a customer pays outside the App Store framework, Apple does not take a cut.

This is a huge financial gain for app creators. Developers who send users to outside sites or third-party payment systems will now keep 100% of their revenue from those sales. That's more money in creators' pockets, subscription services, fitness apps, education platforms, and many other digital services.  

Maybe the most awaited aspect of this decision is officially permitting external payment links and buttons in apps. Developers were not only discouraged beforehand but were actively forbidden from hosting any external call-to-action in the form of a payment inside an app. Attempting to circumvent Apple's system has historically resulted in app rejection, even outright takedowns within the App Store.

But all that is history now. Developers are now able to add external links, buttons, and prompts within their apps to guide users to websites or third-party payment processors. Apple is no longer able to block, limit, or fine apps for using these features. This is big news for businesses such as Spotify, Netflix, Epic Games, and many others who now have complete autonomy over their checkout process without Apple's system at all.

All in all, this decision is more than an updated policy it's an entirely new paradigm in the app environment. It frees up developers to innovate, price aggressively, and create closer connections with their customers, all without having to pay Apple's commission charges.

The other vital thing about the ruling is that Apple cannot henceforth use popups or warnings to intimidate users from adopting third-party payment options.

Before now, when a user clicked a link to an external payment gateway, Apple would prompt a warning message informing the user that they were "leaving a secure environment." This generated fear and uncertainty in users' minds, which could damage the developer's reputation and conversion rates. The court has now clarified: Apple cannot employ manipulative strategies to push users to its own payment system. 

This historic ruling is a significant win for developers of all shapes and sizes, creating new possibilities for how they monetize their apps and engage with their users. For the first time, developers can entirely avoid Apple's in-app purchase system and add their own payment systems, giving them much more control over their revenue and user experience. 

By cutting Apple out of the payment loop, developers can now enjoy:

💰 Higher profit margins, since they’re no longer handing over up to 30% of their revenue in commission.

🤝 Direct customer relationships, enabling better user data, support, and engagement.

🧾 Freedom in pricing, billing cycles, and custom subscription models tailored to their audience.

🚀 Notable Beneficiaries Include:

• Spotify – Free to offer subscriptions directly through its own website, sidestepping Apple’s cut and rules.
• Netflix – Gains full control over its payment process, user onboarding, and customer lifecycle.
• Epic Games – Sees the culmination of its long legal battle, with the 2021 ruling now being fully enforced.
• Small Developers – Perhaps the biggest silent winners, as they can finally compete without sacrificing a huge portion of their earnings to platform fees. 

While the decision favors developer freedom, Apple has remained vocal about its reservations. The company maintains that its in-app payment system offers:

• 🛡️ Superior user privacy
• 🧠 Advanced fraud protection

• 🎯 A consistent, seamless purchase experience 

Apple maintains that permitting third-party payment systems could invite trouble in the form of phishing scams, uneven refund policies, and insecure transactions. These are valid concerns from the perspective of user safety, yet the court clarified: developers not Apple are free to select the payment system most suitable for their business.

Though the ruling currently applies only within the United States, its global ripple effects could be profound. Governments and regulators around the world are watching closely and many have already begun taking action against Apple’s closed ecosystem.

• 🇰🇷 South Korea has passed a law that mandates support for third-party payments.
• 🇪🇺 The European Union’s Digital Markets Act (DMA) now legally requires large platforms like Apple to allow competition and openness.
• 🇯🇵 Japan and 🇮🇳 India are also examining Apple’s app store and payment practices.

This U.S. court decision could very well become a precedent, inspiring global regulators to push for similar reforms. If so, developers everywhere may soon enjoy the same freedoms and Apple may be forced to adjust its global business model. 

While Apple has revised its App Review Guidelines and assured compliance, the company has also announced that it will appeal. This paves the way for further courtroom battles in the years ahead.

If Apple succeeds in its appeal, some of the changes may be reversed or amended. If it does not succeed, these guidelines could become business as usual going forward not only in the U.S., but globally. 

The court's decision against Apple is a turning point in the development of the app economy, indicating a shift in power from platform providers to developers. For the first time in more than a decade, iOS developers will no longer be compelled to use only Apple's in-app purchase system. Rather, they can use their own payment systems, keep 100% of external transaction revenue, and make more competitive offers to their users all without the threat of app rejection or fines looming in the wings. As Apple persists in its justification on grounds of security for the user and seamless experience, this legal loss serves to affirm unequivocally that the age of unchallenged platform dominance is over. Developers' rights are gaining traction, and the App Store is finally starting to open up not because Apple wants it, but because a court has ordered it.