Apple has announced its intention to challenge a federal judge’s decision that found Apple deliberately breached a court order in an antitrust lawsuit brought forth by Fortnite developer Epic Games.
Apple, which is set to report its quarterly earnings on Thursday, stated that it firmly disagrees with this decision.
U.S. District Judge Yvonne Gonzalez Rogers instructed Apple to reduce the obstacles guarding its formerly exclusive payment mechanism for in-app digital purchases and permit developers to present links directing customers to alternate methods of transaction. She determined on Wednesday that Apple breached an injunction from 2021 aimed at “preventing the tech giant’s anti-competitive behavior” as well as price constraints.
“Apple’s ongoing efforts to hinder competition will not be condoned,” Gonzalez Rogers stated in her decision, declaring Apple in contempt.
She mandated that Apple should no longer prevent developers from communicating with their users and also decided against imposing any new fees or commissions on transactions made outside of the app.
Epic CEO and founder
Tim Sweeney stated on Twitter
The firm plans to reintroduce Fortnite into Apple’s U.S. App Store the following week.
Apple did not promptly reply to requests for commentary.
In 2020, Epic Games initiated an antitrust legal action claiming that Apple had established an unlawful monopoly with its widely used App Store. This platform generates billions of dollars each year primarily through its exclusive payment system, which charges commission rates between 15% and 30% for transactions within apps.
Although Gonzalez Rogers had
rejected the monopoly claims
, she instructed Apple to reduce the protections surrounding its formerly exclusive payment system for in-app digital purchases, allowing developers to present links directing customers to alternate choices. The
The Supreme Court dismissed Apple’s appeal.
In the instance occurring in January 2024.
“Contrary to Apple’s early court statements, internal business records show that the company was fully aware of its actions and consistently opted for the least competitive choices,” the judge noted on Wednesday. She charged the company’s VP of Finance, Alex Roman, with “straightforward” perjury.
“Internally, Philip Schiller, who was an longtime Apple executive, had pushed for Apple 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,” Judge Gonzales Rogers noted. “Cook made a poor decision,” she added.
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.