A U.S. district judge determined that Apple deliberately breached her restraining order in a lawsuit initiated by Epic Games, and also stated that a senior Apple executive “deliberately lied” while testifying under oath.
The injunction aimed to prevent Apple from engaging in anticompetitive practices and setting prices, allowing external payment alternatives into the App Store.
Judge Yvonne Gonzalez Rogers stated that she would be transferring the case to the US Attorney for the Northern District of California to determine if a criminal contempt proceeding should be pursued.
Apple reacted to the decision late Wednesday.
“We have a strong disagreement with this decision. Despite our objections, we will adhere to the court’s directive and pursue an appeal,” stated an Apple representative.
The ruling made on Wednesday pertains to a lawsuit filed in 2021 by Epic Games, the developer of Fortnite—one of the globe’s most beloved games—which contended that players should have access to alternative payment methods from third parties.
This challenge contested Apple’s 30% commission on sales and contended that the App Store operates as a monopoly.
- Apple suffered a significant setback in the Epic Games lawsuit.
In her ruling of 2021, Judge Gonzalez Rogers declared that Apple was not allowed to prevent developers from directing customers to alternative methods for making purchases.
In addition to buying games, another instance of this could be a movie streaming service allowing users to subscribe through their site directly, bypassing Apple’s in-app purchase system.
On Wednesday, in an order expressing contempt, Judge Gonzalez Rogers determined that Apple persisted in obstructing competitive practices through efforts the court declared will “not be allowed.”
Judge Gonzalez Rogers also noted that the internal company papers she examined indicated Apple intentionally broke the injunction.
As she noted, the papers make clear “Apple was fully aware of their actions and consistently opted for the least competitive choice available.”
She mentioned that CEO Tim Cook disregarded executive Phillip Schiller’s recommendation for Apple to adhere to the injunction, instead allowing CFO Luca Maestri to persuade him against it.
“Cook made a poor choice,” she wrote.
She additionally mentioned that Apple’s vice president of finance, Alex Roman, “deliberately provided false testimony.”
The judge stated that an instance of Apple’s efforts to circumvent the injunction was their choice to impose a 27% fee on out-of-app transactions, whereas they had formerly not charged anything for this.
She mentioned that the firm introduced additional hurdles and stipulations to deter clients from opting for rival buying interfaces.
On a tweet posted on X, Tim Sweeney, the founder and CEO of Epic Games, announced that they plan to reintroduce Fortnite into the US iOS App Store the following week and extended an olive branch to their longstanding competitor.
Epic suggests a truce: Should Apple extend the court’s seamless, tax-free environment for Apple globally, they will reinstate ‘Fortnite’ on the App Store worldwide and withdraw all present and pending legal actions related to this matter,” Sweeney stated.
In a separate posting, he stated: “No charges apply to online deals. The end has come for the Apple Tax. Fees ranging from 15-30%, which were previously imposed by Apple, are equally defunct both within the United States and across Europe due to the Digital Markets Act. What isn’t allowed here won’t be permitted there either.”