A federal judge has dismissed Musi's lawsuit against Apple, ruling that the tech giant can remove apps 'with or without cause' under its developer agreement. US District Judge Eumi Lee found that Apple's decision to delist the controversial music streaming app from the App Store did not breach the Developer Program License Agreement. Musi had alleged that Apple violated its own terms by removing the app based on 'unsubstantiated' intellectual property claims.

Musi built its streaming service by playing music from YouTube without striking deals with copyright holders, displaying its own ads while letting users remove them for a one-time fee of $5.99. The app, downloaded over 66 million times since launching in 2013, displayed YouTube videos within its interface but faced questions about its legality and artist compensation. Apple removed Musi in September 2024, claiming it violated YouTube's terms.

Judge Lee also sanctioned Musi's law firm for 'making up facts' to support the case, ordering them to pay Apple's costs related to the sanctions motion. The judge found that Musi's lawyers presented a 'tenuous' theory as undisputed fact, misrepresenting evidence obtained during discovery. This ruling reinforces Apple's broad discretion in managing its App Store and sets a precedent for similar disputes between developers and platform owners.