According to Ars Technica, on December 11, 2025, the Ninth Circuit Court of Appeals almost entirely upheld a scathing April 2025 contempt ruling against Apple. District Court Judge Yvonne Gonzalez Rogers had found Apple in “willful violation” of her 2021 injunction meant to open iOS payments. The appeals court affirmed Apple’s initial 27 percent fee on developers using outside payment options was “prohibitive” and violated the order. It also agreed Apple acted in “bad faith” and rejected the company’s attorney-client privilege arguments. However, the court reversed the ban on all fees, saying Apple can charge a “reasonable fee” for security costs. Epic Games CEO Tim Sweeney hopes this ruling will “change the App Store situation worldwide.”
The Bad Faith Problem
Here’s the thing: the court didn’t just say Apple messed up. It said Apple acted in “bad faith.” That’s a huge deal legally. It means the judges looked at Apple’s internal discussions and decided the company wasn’t just being stubborn or overly cautious—it was actively looking for ways to not comply with the 2021 order. They rejected viable alternatives internally. That’s a really bad look, and it probably played a big part in why the appeals court sided so strongly with the lower court. It’s not a simple misunderstanding of the rules; it’s seen as intentional obstruction. So what does that mean for the future? It sets a tone. Apple can’t just play procedural games or hide behind privilege claims anymore. The courts are watching, and they’re clearly impatient.
The Fee Fight Is Just Beginning
Now, the big twist. The lower court said Apple couldn’t charge any fee for outside payments. The appeals court walked that back, saying Apple can charge a “reasonable fee” based on its “actual costs” for security and privacy. That sounds like a win for Apple, right? Maybe not. This is where the real battle is going to be fought. Tim Sweeney is already out there framing it, saying these should be “super super minor fees,” like “tens or hundreds of dollars” per app review. Apple’s idea of “reasonable” and a developer’s (or a judge’s) idea are going to be worlds apart. Apple will argue its entire ecosystem’s security is a cost. Developers will argue the fee should only cover the literal act of checking a payment link. Figuring out this number is the next huge legal showdown. You can read the full appeals court ruling here to see the judges’ exact wording.
What This Really Changes
So, is this the end of the App Store as we know it? Probably not overnight. But it’s a massive shift in trajectory. The legal pressure is now undeniable. The 27% fee is dead. The overly restrictive link design rules are dead. The “bad faith” label is a permanent stain. This gives developers and other regulators around the world a powerful new weapon. Basically, every argument Apple makes about why it needs tight control and high fees just got harder to sell. The court is saying, “You can cover your costs, but you can’t use this as a profit center or a tool for control.” That’s a fundamental challenge to the App Store’s business model. And let’s be honest—when the legal system moves this decisively, it’s only a matter of time before the business has to follow.
