Apple's latest courtroom loss is rewriting the rules for iOS payments and opening new revenue doors for mobile apps. Here's what’s changing and why it matters for your bottom line.
The latest court ruling in the Epic vs. Apple battle is shaking up the tech world. Apple warns it could face a massive financial blow, potentially losing hundreds of millions to billions each year due to changes in App Store commission rules. Meanwhile, Epic argues that U.S. consumers are already reaping the benefits with better payment options, bigger savings, and more choice. But the real winners? Developers. They now have the chance to keep up to 30% more revenue per transaction and draw in more subscribers with competitive pricing.
Screenshot of a post shared by Epic Games on X following the court ruling
Epic Games went head-to-head with Apple over its strict App Store payment rules, calling them unfair and anti-competitive. Apple required developers to use its in-app purchase system, taking a hefty 15-30% commission on all transactions. Epic argued that this stifled competition by blocking developers from offering users alternative payment options.
In 2021, the court took the developers’ side, ruling that Apple had to allow alternative payment methods. But Apple didn’t back down easily. Instead, they added warning screens and confusing redirects to discourage users from paying outside the App Store. They even slapped a 27% commission on “off-app” purchases, clearly attempting to protect their cut of the revenue pie.
Fast forward to 2025, the court declared Apple’s tactics a violation of the original ruling. The verdict? Apple had to update its guidelines and let developers include external payment links, with no added fees or hurdles. For mobile app developers and subscription businesses, this marked a big win, offering more freedom, potential revenue growth, pricing flexibility, and the chance to attract more users.
But Epic Games wasn’t alone in its fight. Spotify, for example, refused to use Apple’s in-app purchase system for subscriptions back in 2016. Instead, they boldly created a website to expose Apple’s 30% commission policy and how it impacts pricing and competition. This move underscored the broader, long-running battle against Apple’s App Store policies and the resistance from companies across industries.
Screenshot from Spotify’s Time to Play Fair website
While Apple appeals the ruling, immediate changes are in effect.
“After nearly a decade, this will finally allow us to freely show clear pricing information and links to purchase, fostering transparency and choice for U.S. consumers. We can now give consumers lower prices, more control, and easier access to the Spotify experience.”
Jeanne Moran, spokesperson for Spotify, for Variety.
Even though this ruling currently applies only to the United States, it's likely that other regions will follow suit. The European Commission has already taken a strong stance, issuing a $563 million fine against Apple for preventing third-party payment options, signaling mounting global pressure for change.
Following the ruling, Apple has updated its guidelines and payment rules, clearly stating that developers can now include external payment links in iOS apps. Here’s how Apple now phrases it in their App Review Guidelines:
Screenshot of the upgraded App Review Guidelines allowing external payment methods
While most apps are required to still offer Apple’s in-app purchases, reader apps (apps which provide digital content like magazines, books, music, video as their main function, for example, Spotify) are the exception to the rule.
No link restrictions: include links to external payment options directly within the iOS apps. Plus, dynamic links are allowed!
No Apple commissions on web payments: keep 100% of the revenue from web-based purchases, excluding standard payment processing fees.
Unify payment flows across platforms with solutions like Multi-Channel Billing to build a unified experience across devices and platforms.
Better analytics access: unlock payment performance data for smarter optimization and retention
No design restrictions: you can now design your payment buttons, making the checkout design part of your brand.
No scare tactics: Apple can’t mislead or complicate the user journey for web payments.
While in-app purchases still require Apple’s IAP system, web-based payments now offer a legal and competitive alternative.
Skipping Apple’s commission can mean better margins and more freedom, but it also adds some extra challenges. Switching to external payments means taking on all the behind-the-scenes work Apple used to handle.
More responsibility. From tax calculation to fraud checks and chargeback management, all the back-office operations Apple once covered become yours to manage.
Tax compliance. Selling in the U.S. means staying compliant with sales tax regulations in every state you operate in. If you’re selling internationally, you’ll also need to handle VAT, GST, and other global tax obligations.
Payment processing fees. While you’re no longer paying Apple’s 15–30% commission, payment processors charge their own fees.
Still not sure about switching to web payments? Here’s a simple comparison of Apple IAP vs. web payments.
|
Feature |
Apple In-App Purchase (IAP) |
Web Payments |
|
Commission fees |
15-30% cut taken by Apple | 0% to Apple; only standard payment processor fees apply |
|
Payment flow control |
Apple control UX and checkout flow | Full control over design, branding, and user journey |
|
External links allowed |
Not permitted (except in reader apps post-ruling) | Yes, external links can be included directly in the app |
|
Tax handling |
Handled by Apple | Developer or MoR must manage tax compliance |
|
Fraud protection & chargebacks |
Managed by Apple | Developer or MoR must handle fraud protection and chargebacks |
|
Data access |
Limited visibility into transaction-level data | Full access to customer and payment data for analytics and optimization |
|
Branding |
Apple's UI and purchase flow | Fully branded checkout experience |
|
Customer Support Ownership |
Apple handles billing support | Developer or MoR must handle all billing-related support |
|
Cross-platform consistency |
Fragmented between iOS and web | Unified payment experience across platforms with tools like Multi-Channel Billing |
|
Global expansion readiness |
Limited customization for local markets | MoRs enable localization, currency options, and local payment methods |
The good news? Partnering with a Merchant of Record for mobile apps can take these burdens off your plate, and typically costs far less than Apple’s commissions.
With a trusted Merchant of Record solution, you can unlock the benefits of external web payments without the operational complexity. MoRs manage everything from global tax compliance and fraud prevention to payment processing, refunds, and customer support, all under one contract. That means less risk, lower operational overhead, and faster time-to-revenue.
Cleeng’s Merchant of Record solution for mobile apps is tailored to the needs of subscription businesses looking to make the most out of web payments and outsource administrative burden.
"Working with Cleeng as our MoR has been a game-changer for us. Their expertise in handling payments and preventing fraud has streamlined our operations and helped us achieve results surpassing industry standards. It’s allowed us to concentrate on growing our content and connecting with our audience, knowing that Cleeng has the financial side covered.”
Tsunehiko ‘T’ Takeuchi, Vice President at NHK Cosmomedia America
Here’s how Cleeng helps mobile apps scale internationally:
In short, it gives you the freedom Apple wouldn’t—without trading it for complexity.
“With Apple now allowing external payment links, developers gain unprecedented flexibility but also inherit complex responsibilities like global tax compliance, fraud prevention, and multi-currency payment orchestration. Cleeng’s Merchant of Record solution abstracts that complexity, enabling subscription businesses to implement scalable, secure, and fully compliant web payment flows with minimal overhead and generate substantial additional margins.”
Donald Res, CSO at Cleeng
Want to break free from Apple’s restrictions and boost your mobile app revenue? Discover how Cleeng can help. Get in touch today!