Apple has won an important shift in the long-running battle over App Store rules. As reported by Reuters, the U.S. Court of Appeals has ruled that Apple can collect a reasonable commission on purchases made through external payment links inside iOS apps.
The decision partially reverses earlier sanctions that were imposed after Apple was found to have willfully violated an injunction in the Epic Games case.
What Sparked this Ruling
Since April, developers have been allowed to include links that direct users to purchase options outside the App Store. These links can lead to a developer’s website, where they can offer their own pricing, promotions, or subscription deals. Spotify is one of the many companies that immediately took advantage of this new flexibility.
During this period, Apple was not allowed to collect any commission on these externally linked purchases, and the company consquently filed an appeal on this ruling. The new ruling changes that future outcome. The appeals court says Apple should be permitted to charge a fee that reflects its necessary costs and intellectual property usage.
However, Apple cannot begin charging that commission yet. The matter has been sent back to the district court, which must determine what qualifies as a “reasonable” fee.
Why the Court Intervened
In the ruling cited by Reuters, the appeals court said the previous order functioned more like a punitive measure than a corrective one. By completely banning commissions, the district court overreached its authority and ignored the fact that a non-prohibitive fee could still comply with the spirit of the original injunction.
The appeals court also noted that Apple previously created a non-viable alternative by charging a 27 percent commission on external purchases, pushing most developers away from using the option because the total cost exceeded standard in-app purchase fees.
What is Changing
The court has instructed multiple modifications to ensure fairness and clarity going forward:
- Apple can now charge a reasonable commission: The fee must reflect the costs of coordinating external links and some compensation for intellectual property. Security and privacy costs cannot be included.
- Apple can regulate link design: Developers cannot make external links more visually prominent than in-app purchase buttons. They can place external links in at least the same size, font, and location as Apple’s own purchase options.
- Apple can restrict some link language: This applies only if it aligns with Apple’s general content standards.
- Program-specific exclusions are allowed: Apple is not required to allow external links for all developer programs, such as the News Partner Program or the Volume Purchase Program.
Aside from these adjustments, the rest of the original injunction stays in place. The appeals court reaffirmed that Apple previously made external links unnecessarily difficult to use, which violated the intent of the court’s order.
The entire text of the ruling can be read here.
What Happens Next
Apple cannot charge any commission until the district court finalizes the acceptable fee structure. Both sides have been encouraged to reach an outcome quickly.
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