• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
TechApple

‘Fortnite’ maker Epic Games to contest Apple’s ‘27% tax’ on outside payments and its ‘bad faith compliance’ with court ruling

By
Leah Nylen
Leah Nylen
,
Greg Stohr
Greg Stohr
,
Mark Gurman
Mark Gurman
, and
Bloomberg
Bloomberg
Down Arrow Button Icon
By
Leah Nylen
Leah Nylen
,
Greg Stohr
Greg Stohr
,
Mark Gurman
Mark Gurman
, and
Bloomberg
Bloomberg
Down Arrow Button Icon
January 17, 2024, 5:44 AM ET
The logo of Epic Games is displayed on a mobile phone screen in front of the logo of Apple
Both Apple and Fortnite maker Epic Games had asked the court to hear an appeal related to the case. The justices turned down the appeals without explanation.Arda Kucukkaya—Anadolu Agency/Getty Images

Apple Inc. is opening its US App Store to allow outside payment options after the Supreme Court refused to consider the company’s appeal in an antitrust suit challenging its practices.

The company plans to let all third-party apps sold in the US include an outside link to a developer website to process payments for in-app purchases. That will bypass Apple’s own payment system, which charges developers a commission of either 15% or 30%. Still, the iPhone maker said it would attempt to collect a 12% or 27% revenue share from developers that opt out of the Apple system.

The Supreme Court decision let stand a 2023 appeals court ruling that found Apple’s business model didn’t violate antitrust laws, but that it did flout California’s Unfair Competition Law by limiting the developers ability to communicate about alternate payment systems that may cost less. 

Both Apple and Fortnite maker Epic Games Inc. had asked the court to hear an appeal related to the case. The justices turned down the appeals without explanation.

Apple shares slid as much as 2.7% after the court’s announcement before paring their decline. The stock was down 1.2% to $183.63 at the close in New York. 

Developers will need to apply for an “entitlement” to be able to use outside payments systems. Apple previously allowed reader apps — a category that includes video streaming and book reading applications — to point users to the web to sign up for subscriptions. Apple will warn customers when they press a link to conduct purchases outside the App Store before letting them proceed.

“As of today, developers can begin exercising their court-established right to tell US customers about better prices on the web,” Epic Chief Executive Officer Tim Sweeney said in a thread on the social media site X, formerly known as Twitter.

But he took issue with Apple’s plan to charge what he called a “27% tax” on web transactions. If app developers have to pay that fee to Apple and a cut of 3% to 6% to third-party payment processors, they can’t afford to offer lower costs to consumers, he said. Sweeney also described Apple’s planned warning to customers as a “scare screen.”

“Epic will contest Apple’s bad-faith compliance plan in District Court,” he said.

Billions of dollars are at stake. In app spending is forecast to reach $182 billion this year and $207 billion in 2025, according to research firm Sensor Tower. And competitors are ready to steal a piece of it: Microsoft Corp. has said that it’s already in talks to launch a mobile app store focused on gaming.

The 9th US Circuit Court of Appeals last year largely affirmed a lower-court judge’s 2021 decision largely rejecting claims by Epic that Apple’s online marketplace policies violated federal antitrust law because they ban third-party app marketplaces on its operating system. The appeals court also upheld a federal judge’s ruling that the iPhone maker’s practices don’t violate federal antitrust law, rejecting the bulk of Epic’s case against Apple’s App Store.

That decision had been on hold while the Supreme Court appeals were pending. The high court’s decision ended a temporary stay in the case.

The Epic case was the first to challenge Apple’s lucrative App Store system, which rakes in billions of dollars each year. In the interim, the company has come under serious pressure around the world, including in Europe where competition enforcers have two antitrust cases pending against the tech giant. EU authorities are expected to fine the company later this year for allegedly using its App Store rules to thwart music-streaming rivals like Spotify Technology SA.

In a separate Epic suit in December, a jury found that Alphabet Inc.’s Google unfairly wields monopoly power in its Android app store. Google has said it plans to appeal, but key legislation in Europe — as well as investigations in the US and UK and an expected wave of follow-on lawsuits — will keep pressure on the tech giants’ app store duopoly.

About the Authors
By Leah Nylen
See full bioRight Arrow Button Icon
By Greg Stohr
See full bioRight Arrow Button Icon
By Mark Gurman
See full bioRight Arrow Button Icon
By Bloomberg
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Man in a white shirt and jacket.
InnovationBrainstorm Tech
Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45
By Amanda GerutJune 9, 2026
6 hours ago
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, US, on Wednesday, June 3, 2026
InvestingWall Street
Wall Street dumped nearly $1 trillion in tech stocks by midday—then clawed it back and bought peanut butter and paint
By Eva RoytburgJune 9, 2026
8 hours ago
AI isn’t replacing Hyatt’s salespeople—it’s freeing up a full day of work every week, according to the CEO
AIBrainstorm Tech
AI isn’t replacing Hyatt’s salespeople—it’s freeing up a full day of work every week, according to the CEO
By Sharon GoldmanJune 9, 2026
9 hours ago
America’s grid is reeling. General Motors offers itself as a distributed utility in disguise
EnergyAutos
America’s grid is reeling. General Motors offers itself as a distributed utility in disguise
By Nick LichtenbergJune 9, 2026
9 hours ago
Tesla cofounder: ‘We should be really worried’ about the U.S. grid as China speeds ahead in the power race
EnergyBrainstorm Tech
Tesla cofounder: ‘We should be really worried’ about the U.S. grid as China speeds ahead in the power race
By Jordan BlumJune 9, 2026
9 hours ago
The AI industry spent years chasing bigger models. Now it’s chasing efficiency
AIBrainstorm Tech
The AI industry spent years chasing bigger models. Now it’s chasing efficiency
By Sharon GoldmanJune 9, 2026
10 hours ago

Most Popular

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
Asia
Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
By Kate O'Keeffe and BloombergJune 8, 2026
1 day ago
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
Economy
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
By Nick LichtenbergJune 9, 2026
13 hours ago
Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
Environment
Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
By Sasha RogelbergJune 8, 2026
1 day ago
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Success
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
By Preston ForeJune 8, 2026
2 days ago
Current price of oil as of June 8, 2026
Personal Finance
Current price of oil as of June 8, 2026
By Joseph HostetlerJune 8, 2026
2 days ago
Gen Zers are arriving at college unable to even read a sentence—professors warn it could lead to a generation of anxious and lonely graduates
Success
Gen Zers are arriving at college unable to even read a sentence—professors warn it could lead to a generation of anxious and lonely graduates
By Preston ForeJune 7, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.