'Apple Tax is Dead in the USA'

The Ninth Circuit Court of Appeals has almost entirely upheld a scathing April ruling that found Apple in willful violation of a 2021 injunction meant to open up iOS App Store payments in its long-running legal battle against Epic Games. A three-judge panel affirmed that Apple's 27% fee for developers using outside payment options had a "prohibitive effect" and that the company's design restrictions on external payment links were overly broad.

The appeals court also agreed that Apple acted in "bad faith" by rejecting viable, compliant alternatives in internal discussions. One divergence from the lower court: the appeals court ruled that Apple should still be able to charge a "reasonable fee" based on its actual costs to ensure user security and privacy, rather than charging nothing at all. What qualifies as "reasonable" remains to be determined.

Epic CEO Tim Sweeney told reporters he believes those fees should be "super super minor," on the order of "tens or hundreds of dollars" every time an iOS app update goes through Apple for review. "The Apple Tax is dead in the USA," he wrote on social media. Sweeney also alleged that a widespread "fear of retaliation" has kept many developers paying Apple's default 30% fees, claiming the company can effectively "ghost" apps by delaying reviews or burying them in search results.

Read more of this story at Slashdot.