Core Viewpoint - Apple has failed to secure a pause on a court order that mandates the company to allow app developers to direct users to web-based purchases without paying commissions, marking a significant setback in its ongoing legal battle with Epic Games over the dominance in the smartphone software market [1]. Group 1 - The request for a pause on the court order was denied by a federal appeals court in San Francisco [1]. - The court ruling requires Apple to change its App Store policies, impacting how developers can monetize their applications [1]. - This legal decision represents the latest challenge for Apple in its long-standing dispute with Epic Games regarding app store practices [1].

Core Viewpoint - Epic Games' Fortnite is unable to submit its iOS version to the App Store due to Apple's restrictions, leading to a global removal of the game until the issue is resolved [1] Group 1 - Epic Games announced that Apple has blocked the submission of Fortnite, preventing its release on the US App Store and the Epic Games Store in the EU [1] - The iOS version of Fortnite will be taken down globally until Apple lifts the restrictions [1]

Core Points - The U.S. Northern District Court of California ruled against Apple in the Epic Games lawsuit, stating that Apple violated a 2021 order prohibiting anti-competitive pricing practices, requiring Apple to stop restricting developer and user communications and not charge commissions on external purchases [1][3] - Following the ruling, the U.S. App Store opened up to third-party payment options, allowing developers to add buttons and links to direct users to external payment channels without additional authorization [1][3] - The ongoing legal battle, which began in August 2020, has significant implications for developers and the App Store's business model, with a more open App Store era on the horizon [3][4] Legal Background - The dispute began when Apple removed the popular game Fortnite from the App Store after Epic Games introduced a direct purchase option to bypass Apple's 30% commission [4][8] - Epic Games accused Apple of monopolistic practices that harm developers, estimating that Apple's App Store profits reached nearly 80%, which they claimed created an unfair competitive advantage [7][8] - In the initial ruling in September 2021, the court sided with Apple on most counts but found that Apple's restrictions on directing users to external payment options violated California law [8] Recent Developments - The court's recent ruling indicates a crack in the "Apple tax," but it did not mandate a reduction in the 30% commission rate, which Epic Games had hoped to change [8][9] - Apple has been found to intentionally defy the court's orders regarding the anti-steering provisions, leading to a new, stricter injunction against the company [9][10] - Epic Games views the latest ruling as a significant victory, allowing them to reapply for Fortnite's return to the App Store after its removal in 2020 [9][10] Global Context - The "Apple tax" has faced scrutiny globally, with various countries and regions challenging Apple's App Store rules [10][11] - The European Union is actively legislating against platform monopolies through the Digital Markets Act, which will require Apple to allow third-party app stores and payment systems [10][11] - In South Korea, legislation has already been passed to allow third-party payment systems, with Apple complying but still imposing a reduced commission of 26% [13][14] Implications for Developers - The ongoing legal battles and regulatory changes may lead to a more favorable environment for developers, as the traditional 30% commission model faces increasing scrutiny [15][20] - Developers in China have expressed mixed feelings about the "Apple tax," with some viewing the 30% fee as reasonable compared to historical rates in the industry [19][20] - The evolving landscape suggests that rules governing app distribution and payment processing are not fixed and may continue to change as developers advocate for more equitable practices [20][21]