A US federal judge has escalated the long-running legal clash between Apple and Epic Games, referring the tech behemoth to the US Attorney for potential criminal contempt charges. This development comes after Judge Yvonne Gonzalez Rogers determined that Apple “willfully violated” a previous injunction related to anti-competitive conduct within its App Store. Adding fuel to the fire, the judge also accused a top Apple executive of “outright lied” while under oath.
The initial injunction, stemming from Epic Games’ 2021 lawsuit, aimed to dismantle Apple’s tight grip on the App Store by mandating the allowance of external payment options and curbing what were deemed anti-competitive pricing strategies. Epic Games, the powerhouse behind the globally popular game Fortnite, had argued against Apple’s practice of taking a substantial cut – up to 30% – from in-app purchases, labeling the App Store a monopoly.
While Judge Gonzalez Rogers’ 2021 ruling stipulated that Apple could no longer prevent developers from directing users to their own purchase systems, her latest contempt order asserts that Apple continued to obstruct competition through measures the court deemed unacceptable.
In a strongly worded statement, Judge Gonzalez Rogers revealed that internal Apple documents painted a clear picture of deliberate obstruction. “The documents reveal that Apple knew exactly what it was doing and at every turn chose the most anticompetitive option,” she stated. She further pointed to CEO Tim Cook’s alleged disregard of advice from executive Phillip Schiller to comply with the injunction, reportedly siding with CFO Luca Maestri’s opposing view. “Cook chose poorly,” the judge asserted.
The court’s findings also included a damning accusation against Apple’s vice-president of finance, Alex Roman, who Judge Gonzalez Rogers stated “outright lied under oath.”
Highlighting Apple’s efforts to circumvent the injunction, the judge cited the company’s decision to impose a 27% commission on purchases made outside the App Store – a stark contrast to their previous zero-commission policy. Additionally, Apple reportedly introduced new hurdles and requirements designed to discourage users from utilizing alternative payment platforms.
Responding to the escalating legal pressure, Apple issued a statement late Wednesday, expressing strong disagreement with the ruling and vowing to comply with the court order while pursuing an appeal.
Meanwhile, Epic Games CEO and founder Tim Sweeney took to X (formerly Twitter) with a seemingly conciliatory gesture. Announcing the return of Fortnite to the US iOS App Store next week, Sweeney proposed a “peace proposal”: if Apple were to extend the court’s “friction-free, Apple-tax-free framework” globally, Epic would bring back Fortnite worldwide and cease all current and future litigation on the matter.
In a subsequent post, Sweeney declared what he perceives as a victory, stating that Apple’s “15-30% junk fees are now just as dead here in the United States of America as they are in Europe under the Digital Markets Act.” He emphasized “NO FEES on web transactions,” proclaiming “Game over for the Apple Tax.”
This latest development injects a significant dose of uncertainty into the future of the App Store ecosystem, potentially reshaping the financial dynamics between Apple and app developers worldwide. The outcome of the potential criminal contempt investigation could have far-reaching consequences for Apple’s business model and its control over its mobile platform.