Apple Loses Epic Games Lawsuit, ‘App Store Changes’ Are Coming

Apple (AAPL) lost ground once again to “Fortnite” maker Epic Games in their years-long courtroom battle. On June 4, the 9th U.S. Circuit Court of Appeals rejected Apple’s request to pause a court order requiring App Store changes that would force the iPhone maker to open its App Store to competition. In an unsigned, two-page opinion, the appeals court stated, “After reviewing the relevant factors, we are not persuaded that a stay is appropriate.”

Apple Continues Losing to Epic Games

The ruling also means Apple cannot charge app developers a commission for directing consumers to make app purchases on other websites. Additionally, Apple is prohibited from controlling the language and design that developers use to guide users to these external payment options. Apple wanted to put a hold on this provision while it appealed the original judge’s order.

Unhappy with the outcome, an Apple spokesperson said the company will continue to fight the ruling during the appeals process. Meanwhile, Epic Games CEO Tim Sweeney expressed enthusiasm about the court’s decision in an X post stating that the “long national nightmare of the Apple tax is ended.”

History of Apple’s Legal Battle with Epic Games

Apple earned millions, if not billions, from App Store purchases. The company initially charged a flat 30% commission on all purchases made through its App Store. Epic Games alleged that Apple engaged in monopolistic behavior by charging fees and preventing developers from offering their apps on alternative platforms. While the judge mostly ruled in Apple’s favor in the original 2021 ruling, the company was ordered to allow developers to steer consumers outside the App Store to make purchases.

Years later, in April 2025, U.S. District Judge Yvonne Gonzalez Rogers found that Apple had “wilfully” violated her prior injunction by applying a new 27% fee on app developers when customers made purchases outside the App Store. She was disappointed that Apple tried all means to circumvent the injunction and had misled the court about its efforts to comply with her 2021 order. The judge also referred Apple and one of its executives to federal prosecutors for potential criminal investigation.

Is AAPL a Good Stock to Buy?

On TipRanks, AAPL stock has a Moderate Buy consensus rating based on 16 Buys, nine Holds, and four Sell ratings. The average Apple price target of $228.65 implies 12.7% upside potential from current levels. Year-to-date, AAPL stock has lost 18.8%.

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