App Store manipulation found unacceptable by American judge, holding Apple accountable for breaking decree
In a groundbreaking decision, a federal judge in California has declared Apple's actions as unacceptable and has referred the tech giant to federal prosecutors for potential criminal contempt investigation. This move is a first in the long-standing battle over App Store practices.
U.S. District Judge Yvonne Gonzalez Rogers handed down an 80-page ruling on Wednesday, stating that Apple had blatantly disregarded her prior injunction order, issued in an antitrust lawsuit brought by "Fortnite" maker Epic Games.
Gonzalez Rogers pointed out that Apple's continued efforts to hinder competition would not be tolerated, calling the situation an injunction, not a negotiation. Apple and one of its executives, Alex Roman, vice president of finance, were singled out in this ruling.
Roman's testimony was described as replete with misdirection and outright lies, according to the judge's ruling. In response, Apple stated it strongly disagrees with the decision and announced its intention to appeal.
Epic Games CEO Tim Sweeney hailed the judge's order as a significant victory for developers and consumers. He expressed plans to bring Fortnite back to the Apple App Store next week, as Apple had pulled Epic's account in 2020 following the company's moves to navigate outside Apple's ecosystem for better payment deals.
Epic had accused Apple of stifling competition for app downloads and overcharging commissions for in-app purchases. In 2021, Gonzalez Rogers found Apple violated a California competition law and ordered the company to allow developers more freedom to direct app users to other payment options.
Apple had previously tried to get the U.S. Supreme Court to strike down the injunction but failed. Epic told the court in March 2024 that Apple was violating the court's order, including by imposing a new 27% fee on app developers for transactions outside the App Store.
Apple began displaying messages warning customers of the potential danger of external links and deterring non-Apple payments, according to Epic. The new system, allegedly, was commercially unusable. Apple has denied any wrongdoing.
In her ruling, Gonzalez Rogers barred Apple from impeding developers' ability to communicate with users and prohibited the company from levying its new commission on off-app purchases. She also stated that Apple cannot ask her to pause her ruling due to the repeated delays and the severity of the conduct.
This decision could potentially lead to federal prosecutors pursuing criminal charges, escalating penalties beyond the existing civil sanctions.
- The federal judge, Yvonne Gonzalez Rogers, has given Apple's vice president of finance, Alex Roman, a stern reprimand for his testimony, which was described as filled with misdirection and lies.
- Apple is set to compete in the business world again, as Epic Games plans to bring Fortnite back to the Apple App Store next week, following Apple's actions that were previously found to be in violation of antitrust laws.
- In response to the 80-page ruling issued by Judge Yvonne Gonzalez Rogers, Apple stated its intent to appeal, despite the judge's orders barring the company from impeding developers' ability to communicate with users and prohibiting the imposition of a new commission on off-app purchases.
- The ongoing battle between Apple and Epic Games, centered around App Store practices, could lead to a significant shift in the tech industry in 2024, with potential criminal charges being pursued by federal prosecutors for the tech giant's actions.
