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Chronicles

The story behind the story

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Epic ruling is a win for Apple as it costs the company just a few billion annually and doesn't force Apple to change its fees or let 3rd-party app stores on iOS

one of the linchpins of the internet economy — may be ending.” https://www.nytimes.com/... Steven Sinofsky / @stevesi : Great summary/quotes. Look beyond the (one) headline. #epicvapple It is very rare to see so many points of substance go the opposite direction of headline. Also unusual to see so much doubt cast on expert witnesses. https://twitter.com/... Dare Obasanjo / @carnage4life : As I've said before, Stripe is the big winner here. Why give Apple 30% when you can give Stripe 3% instead? A lot of public companies from Match group to Roblox just got a whole lot more valuable overnight. https://www.theverge.com/... Will Oremus / @willoremus : Crucial nuance here: I've seen some folks saying Apple has been found to *not* be a monopolist in the Epic Games verdict. That's not quite right. The judge said Epic failed to *prove* Apple a monopolist—but she was careful to leave open the possibility that it is. https://twitter.com/... Eriq Gardner / @eriqgardner : NYT: “A Win for App Developers” Ars Technica: “Major Win for Epic Games” BBC: “Apple Dealt Major Blow” Politico: “Apple Wins Epic Antitrust Suit.” (I went with “Mixed Ruling,” but largely agree with Politico this was a favorable development for Apple.) Rebecca / @rebeccaslatkin : Last thing: I was part of the team that interviewed several PCI 3rd party providers who bid on our account. You can do all the due diligence in the world (we did) but there are incompetent wolves in sheep's clothing with fake uptime stats every where you look. Rebecca / @rebeccaslatkin : And if these tweets don't change your mind, now would be the time to start walking on nails and LEGO barefoot. That will prepare you for working with credit card iFrames. Rebecca / @rebeccaslatkin : I might not know much but after spending nearly a year working on a team of 50+ to get an e-commerce giant PCI compliant (including a terrifying audit&interrogation/a very bumpy Black Friday), I would cling to the App Store Payment System instead of taking that on internally. Rami Ismail / @tha_rami : I think the legal system is broken in a million ways, but you have to admit that listening to two game corporations arguing about the definition of “game” and the judge deciding that “you're both full of shit” feels like a pretty just outcome. https://www.theverge.com/... Rami Ismail / @tha_rami : Potential soon news: Unreal Engine announces fully integrated mobile payment solution with a 12% cut for iOS projects only. Literally just one click to enable it - extremely user-friendly. I mean, I could see them do it. Quinn Nelson / @snazzyq : Apple: “Waaaaaaaa” Epic: “Waaaaaaaa” Gerrit De Vynck / @gerritd : Judge: even if you have the best product, hiding other options from your customers is anti-competitive. Seems significant for other Big Tech antitrust cases https://twitter.com/... Goblin / @thegoblinnn : this is fucking huge news, apps can now start accepting crypto as payment and still be listed on the app store - lets gooo https://twitter.com/... Alex Stamos / @alexstamos : Agreed. I think this is a smart ruling. The judge understood the security benefits of the app store monopoly while also stopping that monopoly from being used to bilk consumers and independent developers. Apple should be fine with the profit margin on $799 phones. https://twitter.com/... Ben Bajarin / @benbajarin : Most consumers will still use IAP. Only a handful of apps or brands can successfully, at scale, get normal consumers to use an alternate payment system. The issue, I see, is the impact to the user experience when developers start hassling you to use their own payments. https://twitter.com/... Sebastiaan de With / @sdw : Today's ruling on Epic v. Apple is good for everyone involved. We probably won't use it for @halidecamera, but I applaud it. It does boggle my mind that Apple is conceding through lawsuits instead of changing App Store policy proactively to avoid anti-trust scrutiny. https://twitter.com/... Mark Gurman / @markgurman : My GUESS is that Fortnite returns to the App Store sometime early next year — better for Apple, Epic, and consumers. Epic could build a website for buying V-Bucks on the web and implement a button in Fortnite and comply with other App Store rules that led to its removal. Stephen Warwick / @stephenwarwick9 : To sum up Epic games has won after being defeated in court, and Apple will be forced to make massive sweeping yet very minor changes that will change absolutely everything and yet nothing for developers and will cost the company it's huge App Store cash cow that is actually tiny Mark Gurman / @markgurman : New story: Apple is being forced to make the most significant change ever to the App Store, but it will only cost them a few billion dollars annually, or about 1% of revenue. This is a loss for Epic, but a win for Apple and many developers. https://www.bloomberg.com/... Mark Gurman / @markgurman : Question is: did Apple's decisions over the past few weeks... steer (sorry) the Judge's ruling? Or did Apple determine those were the two most likely decisions from the Judge and make a calculated bet to preempt her? I'd bet on the latter. Benedict Evans / @benedictevans : Reminder - App Store commission was about $15 billion last year (6% of Apple revenue) and 80 to 90% games. The interesting question is whether Apple's rules have stopped things other than games from working. Has Apple gerrymandered the store?

Bloomberg Mark Gurman

Context & Ripple Effects

The court preserved Apple’s core App Store structure while striking its anti-steering restrictions: developers can point users to external payment options, but Apple was not found to be a monopolist. Epic also lost its bid to regain its App Store account and was ordered to pay damages over direct in-app payments.

The decision established the dispute’s central trade-off—payment choice without alternative iOS stores or a mandated fee cut. That narrow remedy later survived when the Supreme Court let the developer-steering ruling take effect, leaving compliance terms, rather than the store’s existence, as the main battleground.

First-order effects

  • Apple keeps control of iOS app distribution and its stated App Store fee structure, while absorbing the ruling’s projected annual revenue impact.
  • Developers gain a lawful route to link customers to external payment methods; Epic remains outside the App Store after the ruling denying restoration of its account.

Second-order effects

  • Payment providers such as Stripe have an opening to process purchases developers can direct outside Apple’s checkout, putting pressure on Apple’s payment economics rather than its distribution control.
  • Apple’s compliance choices become consequential: its later defense of a 27% fee for purchases made outside the App Store shows the fight shifts to the value and cost of steering rather than a simple commission ban.

Third-order effects

  • The case points to a regulated-platform model in which courts can limit gatekeeper conduct while leaving the gatekeeper’s store, rules, and commercial terms largely intact.
  • If enforcement continues to focus on anti-steering, app-market competition will center on off-platform transaction terms and developer access to customers, not on opening iOS to competing app stores.

The trend: App-store regulation is increasingly targeting payment steering and platform take rates while preserving incumbent control over software distribution.

Discussion

  • @skupor Scott Kupor on x
    Everything you need to know - or at least I what I thought was interesting - in <100 tweets about the Apple/Epic lawsuit verdict today.
  • @saraheneedleman Sarah E. Needleman on x
    Apple scored a partial victory in a landmark antitrust case, but its fight with opponents of the App Store is far from over $aapl https://www.wsj.com/...
  • @ezraklein Ezra Klein on x
    The Apple decision seems very good for anyone who uses Apple products. An example of courts making it harder for a company to mistreat its own customers.
  • @markgurman Mark Gurman on x
    Quite frankly, whole strategy is a total head scratcher. Epic PR should be positioning this as a win for themselves because they got a judge to make the biggest business model change to the App Store in its history. Instead of they are calling it a loss. https://twitter.com/...
  • @paulg Paul Graham on x
    “Together, the legal setbacks and the tighter regulatory controls indicate that Apple's long run of calling all the shots on the App Store — one of the linchpins of the internet economy — may be ending.” https://www.nytimes.com/...
  • @markgurman Mark Gurman on x
    Agree. Epic is positioning this as a loss - but it is actually mostly a win for many developers. Ironic they are calling it a loss when they entered the trial saying they were doing this for the developer community, not for themselves. https://twitter.com/...
  • @stevesi Steven Sinofsky on x
    Great summary/quotes. Look beyond the (one) headline. #epicvapple It is very rare to see so many points of substance go the opposite direction of headline. Also unusual to see so much doubt cast on expert witnesses. https://twitter.com/...
  • @rebeccaslatkin Rebecca on x
    Last thing: I was part of the team that interviewed several PCI 3rd party providers who bid on our account. You can do all the due diligence in the world (we did) but there are incompetent wolves in sheep's clothing with fake uptime stats every where you look.
  • @rebeccaslatkin Rebecca on x
    And if these tweets don't change your mind, now would be the time to start walking on nails and LEGO barefoot. That will prepare you for working with credit card iFrames.
  • @rebeccaslatkin Rebecca on x
    I might not know much but after spending nearly a year working on a team of 50+ to get an e-commerce giant PCI compliant (including a terrifying audit&interrogation/a very bumpy Black Friday), I would cling to the App Store Payment System instead of taking that on internally.
  • @tha_rami Rami Ismail on x
    I think the legal system is broken in a million ways, but you have to admit that listening to two game corporations arguing about the definition of “game” and the judge deciding that “you're both full of shit” feels like a pretty just outcome. https://www.theverge.com/...
  • @tha_rami Rami Ismail on x
    Potential soon news: Unreal Engine announces fully integrated mobile payment solution with a 12% cut for iOS projects only. Literally just one click to enable it - extremely user-friendly. I mean, I could see them do it.
  • @snazzyq Quinn Nelson on x
    Apple: “Waaaaaaaa” Epic: “Waaaaaaaa”
  • @gruber John Gruber on x
    @reckless No, that's not at all what they're saying on background. They're saying the ruling is unambiguous that Apple is allowed to mandate that (lowercase) in-app purchases must use Apple's (uppercase) In-App Purchase processing. Pages 149-150 of the ruling.
  • @thegoblinnn Goblin on x
    this is fucking huge news, apps can now start accepting crypto as payment and still be listed on the app store - lets gooo https://twitter.com/...
  • @markgurman Mark Gurman on x
    My GUESS is that Fortnite returns to the App Store sometime early next year — better for Apple, Epic, and consumers. Epic could build a website for buying V-Bucks on the web and implement a button in Fortnite and comply with other App Store rules that led to its removal.
  • @stephenwarwick9 Stephen Warwick on x
    To sum up Epic games has won after being defeated in court, and Apple will be forced to make massive sweeping yet very minor changes that will change absolutely everything and yet nothing for developers and will cost the company it's huge App Store cash cow that is actually tiny
  • @markgurman Mark Gurman on x
    New story: Apple is being forced to make the most significant change ever to the App Store, but it will only cost them a few billion dollars annually, or about 1% of revenue. This is a loss for Epic, but a win for Apple and many developers. https://www.bloomberg.com/...
  • @markgurman Mark Gurman on x
    Question is: did Apple's decisions over the past few weeks... steer (sorry) the Judge's ruling? Or did Apple determine those were the two most likely decisions from the Judge and make a calculated bet to preempt her? I'd bet on the latter.
  • @benedictevans Benedict Evans on x
    Reminder - App Store commission was about $15 billion last year (6% of Apple revenue) and 80 to 90% games. The interesting question is whether Apple's rules have stopped things other than games from working. Has Apple gerrymandered the store?