In a major blow to Apple, the US Supreme Court declined to review a lower court's order on Tuesday, which means that Apple will have to comply with a sweeping injunction that reshapes its relationship with mobile app developers and potentially affects billions of dollars in app-related sales. The decision not to hear Apple's petition leaves in place a nationwide injunction that prohibits Apple from intervening when developers include buttons, links, or other features within iOS apps to direct customers to purchase in-app content through payment channels other than Apple's.

Apple estimated that developers generated $1.1 trillion in the App Store in 2022, making the Supreme Court's decision a significant setback for the company. Apple typically takes a 30% cut of in-app purchases of digital goods and services, although it takes a lower 15% cut in some situations, and some app makers pay no commission at all. For years, Apple has sought to prevent app makers from using alternative payment channels, but the injunction now prohibits Apple from enforcing this language in its app store terms.

The injunction, which was first issued in Apple's landmark antitrust battle against Epic Games, affects potentially millions of app developers. Apple argued that the order was unconstitutionally broad as it affected developers who were not involved in the Epic Games litigation. However, the Supreme Court's decision not to hear the case indicates that lasting changes have been made to Apple's app store.

Epic Games CEO Tim Sweeney expressed disappointment with the court's rejection of its petition but highlighted that the surviving injunction allows app makers to inform US customers about better prices available on the web. This decision not only affects Apple but also highlights the contrast between how courts view Apple's app store compared to Google's. While lower courts have held that Apple is not a monopolist in app distribution, a federal jury recently issued a unanimous verdict stating that Google's approach to apps is more open than Apple's.

The Supreme Court's decision has significant implications for Apple's grip on its lucrative iPhone app store and could potentially impact billions of dollars in revenue each year. The court's rejection of Apple's appeal allows app developers throughout the US to insert links to other payment options within iPhone apps, making it easier for developers to avoid paying Apple's commissions. Epic Games had filed an antitrust lawsuit against Apple, alleging that the app store had become an illegal monopoly that stifles innovation and competition. While Epic lost its broader claim, it won a jury trial against Google's Play Store for apps on Android phones.

Apple's app store practices have been under scrutiny, and this latest development showcases the ongoing battle between tech giants and app developers over control and fees within app stores. The ultimate impact of the injunction remains to be seen, but it marks a significant moment in the evolving landscape of mobile app development and distribution.