Epic Games and PayPal took their concerns directly to US Department of Justice officials, warning that the antitrust case against Apple could end in an agreement too weak to alter the company’s control over its app ecosystem. Epic has separately secured an injunction against Apple’s anti-steering rules and remains involved in a Supreme Court case over app distribution and commissions.
The legal question is the scope of any resolution. A negotiated agreement focused on iPhone interoperability could require Apple to make it easier for third-party devices and services to work with the phone. It would leave commissions and control of app distribution for other courts to decide, including the still-open dispute between Epic and Apple before the Supreme Court.
The Justice Department and 16 states filed their complaint against Apple in the District Court for the District of New Jersey on 21 March 2024. They alleged that Apple had monopolised smartphone markets through restrictive practices involving its app store, payments and interoperability.
The case covered limits on super apps, cloud gaming, digital wallets and competing accessories, including smartwatches. The complaint also alleged restrictions on competing messaging services.
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Apple tried unsuccessfully to have the case dismissed in 2025. In June 2025, a federal judge denied its motion, allowing every claim to proceed.
By July 2026, Apple and the Justice Department were reported to be in early settlement talks, and Apple had made several offers that year. The department has since sought developers’ proposals for measures that would improve iPhone interoperability with third-party devices and services, reflecting its preference for negotiation over a trial.
As of September 2026, the parties had reached no settlement agreement, a trial date had yet to be set and no settlement amount had been finalised.
The government alleges that Apple controls roughly 65 percent of revenue in the overall US smartphone market. In the performance smartphone market, it says Apple’s revenue share exceeds 70 percent.
Apple has made changes since 2024, adopting the RCS standard for messaging with Android, opening its NFC chip to third-party payment apps and allowing cloud-streaming game apps.
Developers contend that those steps have not settled the practical competition questions. Rival smartwatches still lack much of the integration available to the Apple Watch, while competing payment apps are reported to remain at a disadvantage despite access to NFC.
Proton, the Swiss privacy company, is reported to doubt that Apple would accept terms developers would consider satisfactory.
The separate Epic litigation illustrates the remaining dispute over commercial terms. Epic obtained an injunction in 2021 against Apple’s anti-steering rules, which had prevented developers from directing users to external payments.
Apple responded by introducing a 27% commission on external purchases.
In April 2025, Apple was found in contempt of court over the anti-steering violation. The Ninth Circuit confirmed that decision in December.
Apple charges developers up to 30 percent on app sales and in-app purchases. A settlement confined to interoperability would therefore leave the commission question, along with app distribution, outside the proposed agreement.
There is also an unresolved leadership question at the department. Adam Candeub, the Trump administration’s nominee to lead the Justice Department’s antitrust division, is awaiting Senate confirmation.
A Justice Department spokesperson declined to discuss the details of the matter and said the department’s goal remained “giving priority to affordability for all Americans”. Apple, Epic and PayPal did not release statements.
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