In a significant legal setback for Apple, a federal judge has blasted the tech giant and CEO Tim Cook for “willfully violating” her previously issued injunction in the long-running App Store antitrust case. Now, the judge has ordered Apple to stop collecting massive fees on payments made outside the App Store.
The Wall Street Journal reports that Federal Judge Yvonne Gonzalez Rogers has dealt a major blow to Apple, ruling that the company “willfully violated” an antitrust injunction related to its App Store policies. In an extraordinary move, Judge Rogers referred the matter to federal prosecutors for a criminal contempt investigation, criticizing Apple CEO Tim Cook and alleging that another company executive lied under oath.
The ruling stems from the long-running legal battle between Apple and Epic Games, the developer of the popular video game Fortnite. In 2021, Epic accused Apple of monopolistic behavior due to the strict controls it imposes on app makers. While Judge Rogers largely sided with Apple in that initial case, she required the iPhone maker to allow developers to offer users alternative payment methods outside the App Store.
However, Apple’s response to the injunction drew sharp criticism from the judge. The company required developers who use alternative payment methods to pay a 27 percent fee, which Judge Rogers deemed as an attempt to “thwart the injunction’s goals” and maintain Apple’s revenue stream. She pointedly chided Tim Cook for ignoring advice from his deputy, Phil Schiller, to comply with the injunction and instead choosing to listen to his finance team.
The judge’s ruling orders Apple to allow developers to direct users to alternate methods of paying for services or subscriptions offered in the App Store. Moreover, the company can no longer impose fees in such scenarios or restrict software makers from providing links or communicating alternative payment options to consumers.
Apple, which generates billions of dollars in high-margin revenue from the fees it collects on in-app purchases, now faces an uncertain future regarding its App Store policies. While some analysts believe that many iPhone users may continue to make purchases within the App Store due to familiarity and convenience, the true impact of allowing alternative payment methods has never been fully tested.
In response to the ruling, an Apple spokesperson stated that the company disagrees with the court’s decision and plans to appeal. Epic Games CEO Tim Sweeney, on the other hand, celebrated the decision as a “huge victory for developers,” underscoring the significance of the ongoing legal battle.
Read more at the Wall Street Journal here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
