Apple violated injunction in antitrust case, judge finds
A federal judge has delivered a scathing rebuke to Apple, ruling that the tech giant knowingly violated a court injunction in an antitrust case brought by Epic Games, the maker of the popular game “Fortnite.”
U.S. District Judge Yvonne Gonzalez Rogers had previously ordered Apple to dismantle the barriers surrounding its exclusive payment system for in-app transactions and allow developers to provide links to alternative payment options. In her latest ruling, she found that Apple willfully defied the 2021 injunction aimed at curbing the company’s anticompetitive behavior and pricing practices.
Gonzalez Rogers emphasized in her decision that Apple’s repeated attempts to stifle competition would not be tolerated, holding the company in contempt for its actions. She mandated that Apple cease obstructing developers from communicating with users and refrain from imposing new commissions on off-app purchases.
Responding to the ruling, an Apple spokesperson stated, “We strongly disagree with the decision. We will comply with the court’s order and we will appeal.”
The legal battle between Epic and Apple began in 2020 when Epic filed an antitrust lawsuit alleging that Apple had unlawfully established a monopoly through its App Store, which generates billions in revenue annually from a payment system that charges commissions ranging from 15% to 30% on in-app transactions. While the judge dismissed the monopoly claims, she still directed Apple to dismantle the barriers around its payment system and allow developers to offer alternative payment methods. The Supreme Court rejected Apple’s appeal in this case in January 2024.
In her latest ruling, Gonzalez Rogers highlighted Apple’s internal documents, which contradicted the company’s courtroom testimony and revealed a deliberate choice to engage in anticompetitive practices. She accused Apple’s vice-president of finance, Alex Roman, of lying under oath and criticized CEO Tim Cook for ignoring recommendations to comply with the injunction.
The judge has referred the matter to the U.S. Attorney for the Northern District of California for potential criminal contempt proceedings.
Last year, the Justice Department filed a comprehensive antitrust lawsuit against Apple, alleging a pattern of behavior aimed at stifling competition in the tech industry.
