A federal judge has harshly criticized
Apple
, discovering that the company behind the iPhone deliberately breached a court order in an antitrust lawsuit brought by ”
Fortnite
” maker Epic Games.
U.S. District Judge Yvonne Gonzalez Rogers mandated that Apple must reduce the restrictions guarding its formerly exclusive payment method for in-app digital purchases and permit developers to present links directing customers to alternate payment methods. On Wednesday, she determined that Apple breached an injunction from 2021 designed to “halt and prevent the company’s anti-competitive behavior” as well as its pricing strategies.
“Continued efforts by Apple to hinder competition will not be accepted,” Judge González Rogers stated in Wednesday’s decision, declaring Apple in contempt.
She mandated that Apple should no longer hinder developers from communicating with their users and also decided against imposing any new fees on transactions made outside of the app.
On Wednesday evening, when speaking to CBS News, an Apple representative stated: “We firmly disagree with this ruling. While we will adhere to the court’s directive, we plan to contest it through an appeal.”
In 2020, Epic initially brought forth an antitrust lawsuit claiming that Apple had established an unlawful monopoly with its widely used App Store. This platform generates billions each year through what was once an exclusive payments system, charging commission rates between 15% and 30% for transactions within apps.
Even though Gonzalez Rogers dismissed the monopoly allegations, she instructed Apple to reduce the protections surrounding its formerly proprietary payment mechanism for in-app digital purchases and permit developers to present links directing users to alternate choices. In January 2024, the Supreme Court turned down Apple’s challenge to this ruling in the dispute.
The judge stated on Wednesday that ‘in sharp opposition to Apple’s early court statements, internal company papers show that Apple was fully aware of its actions and consistently opted for the least competitive choice available.’ The presiding official also charged Apple’s VP of Finance, Alex Roman, with ‘deliberately’ providing false testimony.
“Internally, Philip Schiller, a long-time Apple executive, had pushed for the company to adhere to the injunction. However, CEO Tim Cook disregarded Schiller’s advice and opted to let Chief Financial Officer Luca Maestir and his financial team persuade him against compliance. This decision made by Cook was unwise,” according to Gonzalez Rogers’ writings.
The judge has handed over the case to the U.S. Attorney for the Northern District of California to determine if criminal contempt proceedings should be initiated.
The Justice Department filed
a comprehensive antitrust lawsuit
Against Apple the previous year, claiming that the technology heavyweight implemented various strategies to hinder competition.