Overview

• The Ninth Circuit refused to stay an April order that held Apple in contempt for violating a 2021 injunction by imposing a 27% fee on out-of-App Store transactions.
• The order bars Apple from charging commissions on purchases made through external links and from dictating how developers design or place those links.
• Epic Games, Amazon, Spotify and other major developers have promptly added web-based payment options to their apps to bypass the App Store’s 15% to 30% fees.
• Epic CEO Tim Sweeney hailed the verdict as the end of the ‘Apple tax,’ while Apple said it will press its case further in the appeals process.
• Analysts warn that complying with the order could trim Apple’s services revenue growth by up to 200 basis points, creating a 2–3% earnings-per-share headwind and enhancing margins for alternative app makers.