The mobile software industry experienced a major shift last Wednesday when U.S. District Judge Yvonne Gonzalez Rogers issued a ruling against Apple in the long-standing legal case brought by Epic Games. The most immediate consequence of the decision was Apple’s update to its developer guidelines, which now allows app developers based in the United States to link users from within their apps to external, web-based digital storefronts. This change enables developers to bypass Apple’s standard commission fees on in-app purchases, a move that could significantly alter how apps are monetized.

Epic vs Apple Ruling to Reshape Mobile App Monetization

Spotify Responds with Immediate Action

Spotify was the first major company to act on the new policy. Within a day of the ruling, the music streaming service submitted an update to its iOS app that included the ability for users to view subscription prices and be directed to Spotify’s own website to complete purchases. The update was approved by Apple the following day. Spotify also indicated plans for future features that would expand direct-to-consumer purchasing within the app, suggesting broader possibilities for buying digital content such as audiobooks directly from the company’s platform.

Epic Games Positions for Expanded Developer Access

Epic Games, which initiated the legal challenge against Apple, also moved quickly in response to the decision. The company announced it would allow developers to create their own “webshops” on the Epic Games Store. These storefronts would be free of platform fees on the first $1 million in annual revenue per app. According to Leo Rees, Epic’s Director of Global Public Policy, the implications of the ruling extend beyond commission structures.

Rees stated that developers now have more freedom to build relationships with their customers, offering tailored discounts, bundles, and other incentives that were previously difficult to implement under Apple’s restrictions. While it remains uncertain whether this will lead to the return of Fortnite to the App Store, Epic has expressed a desire to bring the game back, noting that the process is still ongoing and dependent on several external factors.

Epic vs Apple Ruling to Reshape Mobile App Monetization

Developer Reactions Highlight New Revenue Potential

The decision has been welcomed by mobile developers, particularly those operating in digital commerce and game development. Chris Faught, CEO of Neon, a company that builds direct-to-consumer webshops for mobile games, sees significant opportunity in the shift. Faught notes that while some studios have already adopted external purchasing channels, they were previously limited by the inability to link directly from their apps. With those restrictions lifted, developers can now retain more of their revenue and offer users better deals through loyalty programs or discounts, potentially increasing the share of purchases handled off-platform to as much as 50 percent.

Constantin Andry, co-founder of Aghanim, a company that provides integrated payments and community engagement tools for mobile games, describes the court ruling as a rare chance for game studios to build independence from traditional app stores. He emphasizes that beyond payment systems, the ruling allows studios to engage directly with players by creating web-based community hubs. These platforms can offer players exclusive content, rewards, and game-independent achievements, helping studios build long-term user engagement without relying on app store intermediaries.

Epic vs Apple Ruling to Reshape Mobile App Monetization

Legal and Legislative Landscape Remains Uncertain

Despite the current opening for developers, the situation remains fluid. Apple has filed an appeal, and if the decision is overturned, developers may be forced to reverse recent changes. At the same time, new legislation could expand or reinforce the ruling’s effects. The Open App Markets Act, a proposed U.S. law aimed at increasing competition among mobile app platforms, may be reintroduced in Congress soon. Senator Richard Blumenthal has signaled intent to advance the bill alongside Senator Marsha Blackburn. Additionally, Representative Kat Cammack recently introduced the App Store Freedom Act in the House of Representatives, which also targets restrictions in the mobile app marketplace.

Meanwhile, similar legal pressures are emerging in Europe. The European Commission has cited both Apple and Meta for violations of the Digital Markets Act. Epic Games is hopeful that these international regulatory developments will create a more sustainable and developer-friendly business environment, especially in regions where the Epic Games Store already operates under existing restrictions.

The Path Ahead for Mobile Developers

While the recent court ruling has already triggered changes in how developers can manage transactions and user engagement, the long-term outcomes are not yet settled. Developers have a window of opportunity to experiment with new models, but they must also prepare for the possibility of future reversals depending on the results of Apple’s appeal and the progress of pending legislation. For now, companies in the mobile ecosystem are navigating a period of transition, where flexibility and strategic planning will be key to adapting to whatever rules may ultimately take hold.

Source: a16z