Apple opposition stays in iPhone payment update

Image of the app store logo on an Apple iPhone
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Ninth Circuit denies Apple’s plea to pause App Store rule changes

The US Court of Appeals for the Ninth Circuit on June 4 refused Apple’s emergency request to delay a federal court order that forces the company to ease restrictions on in‑app payment links and halt a 27% fee on external purchases 

The decision upholds an earlier contempt ruling against Apple and maintains new rules that affect app payment processing.

A three‑judge panel applied the Nken v. Holder four‑factor test and concluded that Apple had not shown it was likely to succeed on appeal, would suffer irreparable harm, or that a stay would serve the public interest.

The order means Apple must now let developers include links to external payment systems and cannot levy a surcharge on those transactions.

Epic calls ruling a key step for fairer access

Epic Games welcomed the decision. Chief executive Tim Sweeney described the ruling as the end of the “long national nightmare of the Apple tax” in a post on X (formerly Twitter), published shortly after the court order was issued.

The Ninth Circuit’s refusal to stay the injunction follows a contempt finding by the District Court in April 2025. That ruling said Apple had not complied with a 2021 permanent injunction requiring it to let developers communicate alternative payment options. 

The court found that Apple’s 27% charge and restrictions on link design and placement contradicted the spirit of the injunction.


Industry prepares for change in payment flows

Developers including Spotify, Patreon, and Epic Games have already started rolling out external payment links in their iOS apps. These changes will allow transactions to occur through third-party processors, bypassing Apple’s in-app purchase system.

For sectors which rely on microtransactions or subscription payments, including digital content and real-money gaming, the decision opens pathways for closer control of payment channels and potentially lower transaction costs. 

In a public statement issued to The Verge, an Apple spokesperson said: “We are disappointed with the decision not to stay the district court’s order, and we’ll continue to argue our case during the appeals process.”

The company added: “Our goal is to ensure the App Store remains an incredible opportunity for developers and a safe and trusted experience for our users.”

Apple maintains that its in-app purchase rules protect users and simplify the transaction experience. However, the courts have now ruled twice that Apple cannot prevent developers from informing users of external payment options, a feature now required under the permanent injunction.