The news: A federal judge has delivered a sharp rebuke to Apple, ordering the company to loosen its control over the App Store and cease commissions on certain app sales, marking a major shift in the Epic Games antitrust case and weakening Apple’s dominance over mobile payments.

This could undermine Apple’s growing services business, including iCloud, Apple Music, and the App Store, which brought in $26.3 billion in fiscal Q1, a 13.9% YoY increase.

Apple’s legal troubles escalate: Judge Yvonne Gonzalez Rogers accused Apple on Wednesday of defying a court order and lying under oath, handing a major win to Epic Games, which is now bringing Fortnite back to the US iOS App Store after a five-year ban, per The New York Times.

• Epic Games is also introducing its own US app store to iOS, giving its users an alternative to Apple’s in-app payment system.
• This follows Epic launching its iOS store in the EU in August, enabled by rulings tied to the Digital Markets Act (DMA) that opened platforms to third-party apps and payments. 

“We disagree with the ruling but will comply while we appeal,” an Apple representative told CNBC on Thursday.

The halo effect: Epic’s win opens the floodgates for other app developers seeking to launch their own app stores and payment alternatives, effectively weakening Apple’s outsize control over its ecosystem and disrupting its fastest-growing business.

• Spotify is already looking to capitalize on the opportunity. Company rep Jeanne Moran told The Verge that “Spotify will soon submit an app update to improve the experience for US users.” 
• Smaller developers could have a harder time; unlike Epic or Spotify, they don’t have the scale or capital to build secure checkout flows or negotiate with payment processors globally.

Key takeaway: Apple’s grip on app stores and payments is cracking, and the latest legal rulings could set a precedent for similar antitrust cases in other regions. Expect aggressive appeals, subtle policy shifts, and possible design changes as Apple works to retain user lock-in without violating court orders. 

Globally, this ruling gives regulators fresh ammunition, especially in regions already challenging Apple’s dominance, like the EU and Japan.