Following a contempt ruling by Judge Yvonne Gonzalez Rogers, Apple faces a potential criminal investigation after being accused of willfully violating a court order designed to ensure fair competition in app payments. The tech company strongly disagrees and plans to appeal the decision.
Judge Orders Criminal Investigation into Apple's Alleged Contempt of Court
Judge Orders Criminal Investigation into Apple's Alleged Contempt of Court
A US district judge has referred Apple for a potential criminal contempt investigation after ruling that the tech giant violated an injunction related to anti-competitive practices.
In a significant legal development, a US district judge has ruled that Apple Inc. willfully violated a prior injunction in a case brought to court by Epic Games, the creator of the popular game Fortnite. Judge Yvonne Gonzalez Rogers, presiding over the case, asserted that a senior Apple executive “outright lied” under oath during the proceedings. The injunction was crafted to prevent anti-competitive practices and pricing, notably allowing the App Store to accept payment options from outside sources.
The judge has escalated the matter, referring it to the US Attorney for the Northern District of California to determine if a criminal contempt proceeding is warranted. In a statement released after the verdict on Wednesday, an Apple spokesperson expressed strong disagreement with the ruling and affirmed that the company would comply with the order while pursuing an appeal.
This ruling stems from a 2021 lawsuit filed by Epic Games, which contended that Apple's practice of taking a significant commission—up to 30%—from app purchases constituted monopolistic behavior. Judge Gonzalez Rogers previously ruled that Apple could not prevent developers from linking to their own payment systems, thereby opening the door for alternative platforms, which could include streaming services instructing subscribers to register directly through their websites instead of using Apple’s in-app purchasing.
In her latest contempt order, however, Judge Gonzalez Rogers stated that Apple had continued to impede competition, indicating that the court would not license such actions. She found evidence that Apple "knew exactly what it was doing" and consistently opted for the most anti-competitive strategies. Notably, Apple CEO Tim Cook is criticized for disregarding advice from an executive who urged compliance with the court’s ruling, while also allowing the company to impose a 27% commission on off-app purchases, a stark contrast to its previous zero-commission policy.
In response to the ongoing issues, Tim Sweeney, CEO of Epic Games, announced on social media plans to reinstate Fortnite on the US iOS App Store next week and proposed a “peace proposal” to Apple. He urged the tech giant to implement a friction-free, tax-free framework globally, promising to drop current and any future litigation regarding App Store practices, emphasizing the aim to eliminate what he describes as the “Apple Tax.”
