By Mike Scarcella
(Apple Insider Update) – A federal judge based in California has determined that Apple breached a U.S. court directive mandating the company to facilitate increased competition for app installations and payment processes within its profitable App Store. Consequently, the case will be handed over to federal prosecutors.
U.S. District Judge Yvonne Gonzalez Rogers from Oakland issued an 80-page decision stating that Apple did not adhere to her previous injunction order. This injunction stemmed from an antitrust case filed by Epic Games, the creator of “Fortnite.”
“Apple’s ongoing efforts to hinder competitive practices will not be condoned,” stated Gonzalez Rogers. She further noted: “This is an injunction, not a negotiation. Once a party deliberately ignores a court order, there are no second chances.”
Rogers pointed Apple and an executive named Alex Roman, who serves as the company’s vice president of finance, towards federal prosecutors for a potential criminal contempt probe regarding their actions in the case.
Roman provided testimony regarding the measures Apple implemented to adhere to her injunction, which the judge described as “full of misinformation and blatant untruths.”
In a statement, Apple declared, “We firmly disagree with this decision. While we will adhere to the court’s directive, we intend to pursue an appeal.”
The CEO of Epic Games, Tim Sweeney, described the judge’s ruling as a major victory for both developers and consumers.
“It compels Apple to vie with other payment systems instead of prohibiting them, which is exactly what we desired from the start,” Sweeney stated to journalists.
Sweeney stated that Epic Games plans to reintroduce Fortnite into the Apple App Store within the upcoming week. In 2020, Apple terminated Epic’s account due to the company allowing iPhone users to find more favorable payment options beyond Apple’s system.
Epic charged Apple with hindering competition for app downloads and charging excessive fees for in-app purchases.
In 2021, Gonzalez Rogers ruled that Apple breached a California antitrust statute and mandated the corporation to permit developers greater liberty to steer app users towards alternative payment methods.
Last year, Apple was unsuccessful in convincing the U.S. Supreme Court to overturn the injunction.
In March 2024, Epic Games informed the court that Apple was “clearly” disregarding the court’s directive by introducing a new 27% charge on app developers whenever their products were bought outside the App Store through Apple devices. It should be noted that Apple currently levies a 30% transaction fee for sales occurring inside the App Store.
Apple also began displaying messages warning customers of the potential danger of external links in order to deter non-Apple payments, Epic Games alleged, calling Apple’s new system “commercially unusable.”
Apple has denied any wrongdoing. The company in a court filing on March 7 told Gonzalez Rogers it undertook “extensive efforts” to comply with the injunction “while preserving the fundamental features of Apple’s business model and safeguarding consumers.”
Gonzalez Rogers suggested at an earlier hearing that changes made by Apple to its App Store had no purpose “other than to stifle competition.”
In Wednesday’s ruling, Gonzalez Rogers said Apple is immediately barred from impeding developers’ ability to communicate with users, and the company must not levy its new commission on off-app purchases.
She said Apple cannot ask her to pause her ruling “given the repeated delays and severity of the conduct.” She took no view on whether a criminal case should be opened.
“It will be for the executive branch to decide whether Apple should be deprived of the fruits of its violation, in addition to any penalty geared to deter future misconduct,” the judge wrote.
(Reported by Mike Scarcella in Washington; Edited by Chris Reese and Christopher Cushing)