A US district judge has issued a significant ruling against Apple, finding that the tech giant has willfully breached a court injunction aimed at promoting competition within its App Store, which came as part of a legal battle initiated by Epic Games. Judge Yvonne Gonzalez Rogers declared that she would refer Apple to the US Attorney for the Northern District of California for a potential criminal contempt investigation.
The judge's decision stems from a case originally filed in 2021, where Epic Games, known for its popular game Fortnite, argued that Apple’s practices allowed it to monopolize app purchases by imposing a hefty commission rate of up to 30%. In her 2021 ruling, Judge Gonzalez Rogers had ordered Apple to allow developers to link to their own payment methods, effectively reducing its control over app transactions.
However, in her latest contempt order released on Wednesday, the judge discovered that Apple continued to engage in anticompetitive practices even after the ruling. She revealed that Apple executives, including CEO Tim Cook, ignored legal advice and took measures to create new barriers for competitors, determining that the company "knew exactly what it was doing" in its attempts to undermine the injunction.
Additionally, the judge cited that an internal Apple executive, Alex Roman, "outright lied under oath" during the proceedings. As part of its attempts to sidestep the injunction, Apple reportedly introduced a 27% commission for off-app purchases and imposed various hurdles to deter customers from using external purchasing platforms.
In response to the judge's ruling, Apple stated it intends to appeal the decision but emphasized its pledge to comply with the court order. Epic Games founder Tim Sweeney announced plans to reinstate Fortnite on the iOS App Store soon and publicly challenged Apple with a proposal: if Apple extends a court-approved payment framework globally, they would drop ongoing litigation and make Fortnite available worldwide without the prior Apple fees.
This unfolding saga reflects a significant moment for both Apple and the app market, setting the stage for further developments in the battle over app store practices.