Apple's App Store under fresh legal scrutiny over external payment barriers

A new legal challenge has emerged against Apple, reigniting the debate over its control of app-based transactions. The lawsuit, filed this week, accuses the company of crafting a paywall that effectively stifles developers from using their own payment systems—even after being ordered by a federal judge to allow such options.

The dispute stems from a prior court ruling that barred Apple from obstructing apps that direct users to make purchases outside the App Store. Developers were expected to benefit by avoiding Apple’s standard commissions. But plaintiffs now argue that Apple’s updated rules include technical and financial roadblocks that make compliance virtually unattainable for smaller companies.

One such company, Pure Sweat Basketball Inc., claims Apple’s implementation has made it unfeasible to operate its business model independently. The suit alleges Apple imposed new conditions and fees that undercut the value of bypassing in-app purchases altogether. As a result, most developers have not opted into Apple’s “link-out” system—suggesting the new pathway was designed to fail.

The legal firm representing the case, Hagens Berman, is no stranger to Apple disputes. It has previously taken on the company over alleged monopolistic practices, including the high-profile Apple Books price-fixing case. In this new claim, the firm estimates that tens of thousands of developers may be entitled to restitution for being forced to operate under unfair restrictions despite the standing court order.

Apple has responded by maintaining that it’s adhering to judicial guidance while appealing the decision. Its updated App Store rules acknowledge external payment links, but critics argue that the framework still discourages meaningful adoption.

This case adds to the growing chorus of regulators and legal teams worldwide challenging the power Apple exerts over its software ecosystem—raising the question of how long the company can preserve its current model in the face of mounting opposition.