Apple has announced a significant change to its App Store pricing policy, eliminating fees on external transactions for users in the United States. This move, resulting from a long-standing legal battle with Epic Games, could lead to lower subscription prices and increased payment flexibility for users. However, the long-term implications for developers and the global app market remain uncertain.
A person holding the Apple iPhone 16e.
The changes stem from a 2021 court order requiring Apple to allow alternative payment options within apps. This decision was a key development in the ongoing antitrust lawsuit filed by Epic Games, the publisher of Fortnite.
The dispute began in 2020 when Epic offered Fortnite players alternative ways to purchase in-game currency, bypassing Apple’s payment system. Apple retaliated by blocking Epic’s developer account and removing Fortnite from the App Store. This sparked a protracted legal battle, culminating in a court ruling that forced Apple to allow external payment methods.
Initially, Apple still charged a commission on these external transactions, albeit slightly lower than its standard 30% fee. This approach, coupled with additional requirements and warnings for users choosing external payment options, was seen as anti-competitive.
Siri being shown on an iPhone 15 Pro on iOS 18.
In April 2025, a California court ruled against Apple, finding its practices anti-competitive. Apple responded by eliminating fees on external transactions for U.S. users.
Lower Prices and More Payment Options: What Users Can Expect
Apple iOS App iPhone scary screen warning for payments.
This ruling eliminates Apple’s commission on external payments in the U.S., potentially leading to lower subscription prices. Developers now have more flexibility to offer various payment options without incurring extra charges. While developers are not obligated to reduce prices, companies like Epic, Spotify, and Netflix may face pressure to do so.
The court ruling also mandates a more seamless payment process, removing warning screens and allowing developers to promote external payment options. Users can potentially access a wider range of payment methods, including credit cards, bank transfers, payment services like PayPal and Venmo, and even cryptocurrencies.
A Victory with Caveats: Expert Perspectives
App Store screenshot on iPhone.
While the ruling benefits users, experts highlight potential complexities. Nathan Hudson, CEO of Perceptycs, sees this as positive for developers globally, especially those serving U.S. customers. Lauren Henkin, CEO of The Humane Space, emphasizes the increased freedom for developers to choose optimal payment methods.
Cost Benefits and Challenges for Developers
External payments for Spotify premium subscription.
Companies like Zumba, which utilize a web-to-app sales funnel, stand to gain significantly. Lucy Levy, Zumba’s chief consumer officer, foresees cost savings and potential for increased user lifetime value.
However, smaller developers may face challenges implementing and maintaining new payment systems, including tax compliance and handling chargebacks. These complexities could offset the cost savings from reduced App Store fees.
payment options on an iPhone
Redirecting users outside the app for payment could also lead to user drop-off. Developers will need to optimize the checkout process to maintain user engagement.
The Future of App Store Fees: Global Implications and Apple’s Response
App payment screen on iOS app.
The current ruling is limited to the U.S., but similar regulations are being considered in other regions, including South Korea. While the EU has mandated alternative app stores, Apple’s App Store fees remain in effect.
Apple iOS App Store logo on iPhone 2
Apple has stated its intention to appeal the U.S. court ruling. The outcome of this appeal and its potential impact on the global app market remains to be seen. The upcoming WWDC 2025 conference may shed light on Apple’s future plans.
