A US federal court has imposed severe penalties on Apple for its monopolistic practices in the iOS App Store, sending shockwaves through the tech industry. In a landmark ruling, Judge Yvonne Gonzalez Rogers permanently barred Apple from imposing any fee on off-app purchases, lifted restrictions on app developer communications with customers, and banned scare screens that warned users of external websites.
The decision stems from an antitrust case filed by Epic Games against Apple in 2021. Epic sought to challenge Apple’s 30% tax on app sales, which it claimed was a blatant attempt to stifle competition and restrict consumer choice. Apple appealed the initial ruling but ultimately lost when the Supreme Court declined to hear the case.
In response to the court’s decision, Epic Games launched its own app store in the European Union and introduced new features that allow developers to offer off-app purchases at lower rates. Stripe also established a simple payment mechanism to support developers for these types of transactions.
The ruling marks a significant victory for competition and consumer rights, allowing developers to create more affordable and innovative apps without fear of retaliation from Apple. It also highlights the importance of government-imposed rules in regulating monopolistic behavior and promoting market fairness.
“This is a huge win for consumers,” said Matt Stoller, co-host of the Organized Money podcast. “Developers can now offer lower prices, invest in better products, and innovate without fear of retaliation.” The ruling demonstrates that private antitrust litigation can be an effective tool in holding companies accountable for their behavior and promoting competition in dominant markets.
Source: https://prospect.org/justice/2025-05-02-apples-monopoly-finally-held-accountable