Apple secures partial win in Epic Games feud: Court allows 'fair' commission on outside payments

Apple's Partial Victory in Epic Games Battle: Court Allows "Fair" Commission on Third-Party Payments

In a significant development following years of legal wrangling, Apple has achieved a partial triumph in its protracted dispute with Epic Games. A U.S. appeals court has largely sided with a lower court's ruling, partially reinstating Apple's ability to collect commissions on purchases made through external payment systems. This marks a crucial, albeit nuanced, shift in the ongoing saga that began in 2020.

The Genesis of the App Store Wars

The conflict ignited when Epic Games, the creator of Fortnite, challenged Apple's strict App Store policies. Developers chafed under the standard 30% commission fee for in-app purchases and, crucially, the prohibition of using third-party payment gateways. While a 2021 ruling mandated Apple to permit links to external payment options, it did not declare the tech giant a monopoly. This led Apple to revise its guidelines, which, in turn, reignited the legal firestorm.

Apple's Tactics Under Scrutiny

By May 2025, Judge Yvonne Gonzalez Rogers found Apple in violation of the previous court order, concluding the company had actively "sabotaged" compliance. Apple had introduced a hefty 27% commission for transactions occurring outside the App Store within seven days of a user clicking an external link. Furthermore, they limited these links to plain text and implemented full-screen user warnings, actions the court deemed designed to deter both developers and consumers from opting for alternative payment methods. As the court eloquently put it, Apple "paid lip service to compliance but effectively created roadblocks to its implementation."

A Compromise on Commissions

The appeals court, while largely agreeing with the lower court's assessment of Apple's obstructive behavior, found a complete ban on all commissions to be overly drastic. The judges acknowledged Apple's right to a "reasonable fee" to cover the operational costs associated with facilitating external transactions. Consequently, the case has been remanded back to Judge Rogers to determine an equitable commission rate. This decision, therefore, doesn't grant Epic Games a complete win regarding commission-free transactions, but it does prevent Apple from implementing punitive fees.

New Rules of Engagement for Developers

Beyond the commission ruling, Apple has also secured some concessions. The company can now enforce rules that prevent third-party payment buttons or links from being more visually prominent than Apple's own interface elements. This means developers cannot use larger fonts, brighter colors, or bigger sizes to draw attention to their external payment options. However, Apple is still prohibited from compelling developers to make their alternative payment choices less appealing or accessible.

Epic Games Declares Victory Amidst Uncertainty

Tim Sweeney, CEO of Epic Games, wasted no time in heralding the decision as a significant win, proclaiming that the court "banned Apple from imposing giant junk fees." He expressed strong conviction that these changes will ultimately benefit the entire industry and its users. "After years of Apple stonewalling, we are finally seeing widespread change," Sweeney stated with evident enthusiasm. Apple, meanwhile, has remained tight-lipped, offering no public statements on the matter. Intriguingly, Fortnite has already made its return to iOS this spring, and is once again accessible on Android, a welcome development for many gamers since the commencement of this legal battle.