A federal judge ruled that Apple violated a 2021 injunction in its ongoing legal battle with Epic Games by failing to allow developers to inform users about purchase options outside the App Store. The court also cited Apple’s implementation of a 27% fee on off-app purchases as violating the order, per Business Insider.

Apple immediately complied with the ruling while simultaneously filing an appeal. The company told BI that it “strongly” disagrees with the decision, a sentiment echoed by CEO Tim Cook during a recent earnings call.

Subscription-based creator platforms view the ruling as a significant win for their business models and creators.

“This is a huge moment for creators and their businesses,” a Patreon spokesperson told BI. “The iOS app is the No. 1 platform for fan engagement on Patreon, and we believe this ruling allows creators to get paid without giving Apple 30%.”

Patreon confirmed they are submitting an app update to enable payment options outside of in-app purchases. Previously, the company had removed alternative billing systems from its iOS app, advising creators to either raise prices or absorb Apple’s fees.

Other creator economy platforms expressed similar enthusiasm for BI:

• Mighty Networks CEO Gina Bianchini: “We are celebrating over here at Mighty Networks.”
• Passes CEO Lucy Guo: “Companies have had to charge more to creators because of these commissions, so this will put more money in creators’ pockets.”
• Kajabi CEO Ahad Khan: “This ruling is another proof point of this shift toward a more equitable digital marketplace for creators.”

Potential Impact on Apple’s Revenue

The ruling potentially threatens Apple’s App Store revenue, a major contributor to the company’s financial performance. Last quarter, Apple’s services business, which includes the App Store, generated $26.6 billion in net sales.

As the appeals process unfolds, Apple continues to comply with the court’s decision. The ruling prohibits Apple’s previous requirements for “scare screens” – full-screen pop-up messages warning consumers about making purchases outside the App Store – and excessive requirements that effectively circumvented the court’s original order.

Patreon CEO Jack Conte acknowledges that while “the dust has yet to settle” given Apple’s appeal, “this is a good day for creative people.”

In April, the European Commission imposed significant fines on Apple and Meta for violating the Digital Markets Act (DMA). Apple received a €500 million (~$571 million) fine for preventing app developers from informing users about alternative purchasing options outside its App Store.