A federal judge has delivered a stern reprimand to Apple, determining the tech giant deliberately defied a court decision in an antitrust dispute brought by Epic Games, the creator of Fortnite.
In a prior ruling, U.S. District Judge Yvonne Gonzalez Rogers directed Apple to relax restrictions on its formerly exclusive in-app payment system, thereby enabling developers to offer links to alternative payment options. On Wednesday, she concluded that Apple breached a 2021 injunction intended to curb the company’s anticompetitive practices and pricing strategies.
“Apple’s persistent endeavors to hinder competition will not be condoned,” stated Gonzalez Rogers in her judgment, which found Apple in contempt of court. She further decreed that Apple “must cease obstructing developers’ communication with users and refrain from imposing new commissions on external app purchases.”
Tim Sweeney, the CEO and founder of Epic, announced on X that Fortnite would return to Apple’s U.S. App Store in the following week. At the time of reporting, Apple had yet to issue a response regarding the ruling.
The origins of this legal battle trace back to 2020 when Epic filed an antitrust lawsuit claiming that Apple maintained an unlawful monopoly with its App Store, profiting billions yearly from an exclusive payment framework with commission rates ranging from 15% to 30% for in-app sales.
Although Judge Gonzalez Rogers dismissed monopoly accusations, she mandated Apple to dismantle the barriers safeguarding its exclusive payment system and allow developers to present alternative payment link options. This decision remained upheld by the Supreme Court in January 2024 after Apple’s appeal was rejected.
“Contrary to the declarations made during Apple’s initial court testimonies, business records from the time period show that Apple fully understood its actions and opted for the most anticompetitive measures available,” Gonzalez Rogers remarked in her recent ruling. She charged Alex Roman, Apple’s vice-president for finance, with having “blatantly” lied while testifying under oath.
The ruling also highlighted an internal contention: while Apple’s longstanding executive Phillip Schiller recommended that Apple comply with the injunction, CEO Tim Cook opted to overlook Schiller’s advice. Instead, Cook allowed Lucas Maestri, the Chief Financial Officer, and his finance team to sway his decision. “Cook chose poorly,” Gonzalez Rogers noted.
The judge has forwarded the situation to the U.S. Attorney for the Northern District of California to evaluate whether initiating criminal contempt proceedings against Apple would be suitable.