In a significant antitrust ruling, a federal judge ordered Apple to loosen its control over the App Store, following a lawsuit brought by Epic Games aimed at challenging Apple's dominance over app transactions. Judge Yvonne Gonzalez Rogers criticized Apple for circumventing a previous court order by implementing a 27 percent commission on external sales, effectively maintaining a substantial revenue stream against her injunction. She mandated that Apple can no longer collect commissions from sales made outside the App Store and prohibited any dissuasive tactics against external payments. This decision marks a victory for Epic Games and suggests a potential shift in the app economy, potentially benefiting developers with increased revenue while reducing Apple's fees. Despite the ruling, Apple is expected to appeal, as the judgment poses a considerable threat to its lucrative App Store business model, which contributes significantly to its annual services revenue.

Epic Games' lawsuit against Apple, initiated in 2020, aimed to challenge Apple's practice of enforcing app developers to use its payment system, which facilitated a substantial 30 percent commission for Apple on transactions within the App Store.

Judge Gonzalez Rogers had previously ruled that Apple should allow app developers to direct users to external payment methods to avoid the high commissions, but Apple responded by creating a new system with a 27 percent fee and discouraging pop-ups for external payments.

The court found Apple's actions to be in defiance of the injunction, leading to a ruling that prohibits Apple from charging commissions on sales outside the App Store and disallowing any discouragement tactics against such payments.

The decision is seen as a major victory for Epic Games and the broader app development community, as it could lead to better financial arrangements for developers and more competitive pricing for consumers.

Apple's response to the ruling has been muted, with no official comment, but its shares fell by 1.5 percent in after-hours trading, reflecting investor concerns over the potential impact on its revenue from the App Store.

Documents from Apple revealed internal discussions where some executives, including its finance chief, supported maintaining high fees, while others suggested eliminating commissions entirely, highlighting internal disagreements on handling the situation.

The judge's ruling emphasizes Apple's anticompetitive practices and accuses its executives, including CEO Tim Cook, of lying under oath, prompting a call for the U.S. attorney to consider a criminal contempt investigation into Apple's conduct.