Explained: What Epic Games’ ‘epic’ win means for Apple and the App Store

Apple

A federal judge has ruled that Apple willfully violated a court order aimed at opening up its App Store, handing Epic Games a significant legal and symbolic victory in a years-long battle over digital market power. We explain what the ruling means for Apple, Epic Games and more.

How the case began

The legal clash between Epic Games and Apple traces back to August 2020, when Epic bypassed Apple’s in-app payment system in its blockbuster game Fortnite by introducing a direct payment option. This violated Apple’s strict App Store rules, which mandate the use of its proprietary payment system and levy a 15–30% commission on purchases. Apple responded by removing Fortnite from the App Store, prompting Epic to sue the company for antitrust violations.

Epic claimed Apple’s policies created a monopoly, stifling innovation and locking developers into a restrictive system with no alternatives. Apple countersued, arguing Epic had violated its contract. The case went to trial in 2021, resulting in a mixed ruling. Judge Yvonne Gonzalez Rogers found Apple’s anti-steering provisions — which blocked developers from informing users about alternative payment options — to be anticompetitive under California law. She ordered Apple to let developers include such links. Both sides appealed, but the US Supreme Court declined to hear further appeals in 2024, leaving the ruling in place.

What the ruling means for Apple

Judge Rogers found that Apple had deliberately defied the injunction. While Apple did technically allow developers to link to outside payment methods, it also imposed new conditions — including mandatory approvals and a controversial new 27% fee — effectively neutralizing the spirit of the ruling.

“This is an injunction, not a negotiation,” the judge stated, referring the matter to federal prosecutors for possible criminal contempt charges. Internal Apple communications revealed that some executives recommended full compliance but were overruled by others more concerned with protecting revenue. The judge also called out Apple CEO Tim Cook and said that he “chose poorly” when ‘ignoring’ senior executives’ advice.

The verdict is a major legal setback for Apple. It could expose the company to penalties and erode the legal shield it has relied on to maintain control over the App Store. More broadly, the ruling invites further scrutiny of Apple’s business practices, both in the US and internationally, at a time when regulators across the globe are considering stricter app store and digital market regulations.

What the ruling means for Epic Games

For Epic Games, the ruling validates its long-standing -- and rather hard-fought -- claim that Apple’s control over the App Store is excessive and harmful to competition. Epic CEO Tim Sweeney celebrated the decision as a “landmark step” toward a more open and fair digital economy. The court’s contempt ruling strengthens Epic’s position and may encourage other developers to challenge Apple’s policies — especially those frustrated by the so-called “Apple Tax.”

Epic Games' Fortnite

Though Fortnite remains off the iOS App Store, Epic’s legal pressure has pushed one of the world’s largest tech companies to the brink of regulatory overhaul — a significant feat for any private company.

As regulators in the EU, UK, and other jurisdictions weigh their own digital market rules, it remains to be seen how Apple reacts and what kind of impact it ends up having on App Store rules and policies.