Astoria, OR – Apple announced plans to appeal a federal judge’s ruling that found the tech giant willfully violated a court injunction in its ongoing antitrust battle with Fortnite maker Epic Games. The decision, handed down by U.S. District Judge Yvonne Gonzalez Rogers, marks a significant legal setback for Apple, which had hoped to avoid further scrutiny over its App Store practices.
The ruling stems from a 2021 injunction that sought to curb Apple’s exclusive control over in-app payments, requiring the company to allow developers to offer links to alternative payment systems. Apple, however, was found to have failed in complying with the court’s order. Judge Gonzalez Rogers determined that Apple had not only violated the injunction but had also engaged in anticompetitive conduct by continuing to limit developers’ ability to communicate with users and imposing commissions on off-app purchases.
In a sharply worded ruling, the judge emphasized that Apple’s actions were in direct defiance of the court’s earlier directives. “Apple’s continued attempts to interfere with competition will not be tolerated,” Gonzalez Rogers stated. She also accused Apple of intentionally choosing the most anticompetitive course of action despite having internal discussions acknowledging the need for compliance with the court’s ruling.
The judge’s decision includes a striking claim that Apple’s vice president for finance, Alex Roman, lied under oath during the proceedings. Additionally, the court noted that Apple executives, including CEO Tim Cook, disregarded advice from long-time executive Phillip Schiller to comply with the injunction. Instead, Cook allowed Apple’s financial team, led by CFO Luca Maestri, to convince him to pursue a path that ultimately led to the contempt ruling.
Epic Games, which filed the original antitrust lawsuit in 2020, hailed the ruling as a victory. Tim Sweeney, Epic’s CEO, tweeted that Fortnite would return to Apple’s U.S. App Store next week, a direct consequence of the court’s findings. Epic’s lawsuit accused Apple of monopolistic behavior, arguing that the company’s control over the App Store and its exclusive payment system was unfairly stifling competition and driving up costs for developers.
While the ruling did not find Apple to be an illegal monopoly, it did require the company to loosen its grip on the App Store’s payment system. Apple had faced mounting pressure in the wake of the lawsuit to allow developers greater freedom to link to alternative payment options, a move that could significantly disrupt its current revenue model. The company’s App Store generates billions of dollars annually, with commissions ranging from 15% to 30% on in-app transactions.
In response to the ruling, Apple expressed strong disagreement, emphasizing its intention to appeal the decision. The company’s legal team argued that the judge’s interpretation of the injunction was flawed and that they would continue to fight the ruling in court.
This latest development in the high-profile case follows a series of legal defeats for Apple, including the rejection of its appeal by the U.S. Supreme Court in January 2024. The legal battle has drawn widespread attention to the way major tech companies, particularly Apple, exert control over digital marketplaces and extract commissions from developers.
In an additional twist, Judge Gonzalez Rogers referred the matter to the U.S. Attorney for the Northern District of California, suggesting that criminal contempt proceedings could be pursued against Apple. This referral adds another layer of complexity to the ongoing case and could have far-reaching consequences for the company if criminal charges are brought.
As the legal drama unfolds, the outcome of Apple’s appeal remains uncertain. If the ruling stands, it could signal a major shift in how Apple and other tech giants operate their app ecosystems, potentially leading to a more competitive environment for developers and consumers alike. For now, all eyes are on the next phase of this landmark legal battle.
