Apple Caught CHEATING – Judge Says! 

A federal judge has ruled that Apple violated a court order meant to increase competition in its App Store, referring an executive to criminal prosecutors for potential contempt charges.

At a Glance

  • U.S. District Judge Yvonne Gonzalez Rogers ruled Apple violated her previous order to allow more App Store competition
  • The judge referred Apple and its executive, Alex Roman, to federal prosecutors for a criminal contempt investigation
  • Epic Games, maker of “Fortnite,” accused Apple of imposing a new 27% fee and deterring non-Apple payment options
  • Apple plans to appeal the decision but says it will comply with the court’s order
  • Epic Games plans to bring “Fortnite” back to the Apple App Store following the ruling

Court Finds Apple in Violation of Antitrust Order

In a significant blow to Apple’s App Store policies, U.S. District Judge Yvonne Gonzalez Rogers has ruled that the tech giant violated her previous injunction order that was designed to introduce more competition. The ruling stems from an antitrust lawsuit brought by Epic Games, the creator of the popular game “Fortnite.” Judge Rogers not only found Apple non-compliant but took the extraordinary step of referring both the company and its executive, Alex Roman, to federal prosecutors for a potential criminal contempt investigation.

The court’s original order required Apple to allow app developers to direct users to alternative payment methods outside the App Store ecosystem. This was intended to address accusations that Apple was stifling competition and overcharging commissions on in-app purchases, which typically range from 15% to 30%. Despite Apple’s claims that it made extensive efforts to comply while maintaining its business model, the judge determined these efforts fell short of what the injunction demanded. 

Epic Games Claims Victory for Developers and Consumers

Tim Sweeney, CEO of Epic Games, celebrated the ruling as a significant win for developers and consumers alike. The decision potentially opens the door for real competition with Apple’s payment services, which could lead to lower costs for consumers and better revenue opportunities for developers. Following the favorable ruling, Epic Games announced plans to bring “Fortnite” back to the Apple App Store, from which it was removed in 2020 when the legal battle began.

Epic’s lawsuit accused Apple of monopolistic practices in how it operates its App Store. The judge previously determined that Apple had violated California competition law, ordering changes to allow developers more freedom in how they handle payments. Apple’s attempts to have the injunction overturned were unsuccessful, with the U.S. Supreme Court declining to intervene in the case earlier this year. 

New Restrictions and Fees at Issue

A central issue in the judge’s finding was Epic’s accusation that Apple imposed new barriers to competition, including a 27% fee on external app purchases and measures that effectively deterred users from choosing non-Apple payment options. The court specifically barred Apple from impeding developers’ communication with users about alternative payment methods and from levying new commissions on purchases made outside the App Store ecosystem. 

Apple has expressed disagreement with the decision and intends to appeal, but stated it will comply with the court’s order in the meantime. The referral for criminal contempt investigation ultimately leaves the decision about pursuing criminal charges to federal prosecutors. If prosecutors decide to proceed, this could represent a significant escalation in the government’s approach to regulating tech giants’ control over their digital marketplaces. 

The ruling may have far-reaching implications for other app marketplaces and tech companies that maintain similar walled garden approaches to their platforms. For consumers, increased competition could potentially lead to lower prices for digital goods and more options for how they purchase and access content on their devices. 

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