US Judge Rules Apple in Willful Contempt of Court Over Antitrust Violations
Apple faces potential criminal charges for violating antitrust orders aimed at its App Store practices, according to a scathing ruling from a federal judge.
Judge rules Apple 'willfully' violated antitrust order
Washington Examiner
Fortnite Is Returning to the iOS App Store
New York Post
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Overview
A federal judge has ruled that Apple willfully violated a prior injunction intended to enhance competition in the App Store, prompting a referral for potential criminal contempt proceedings. Judge Yvonne Gonzalez Rogers criticized Apple's actions, describing them as deliberate efforts to maintain anticompetitive barriers, including hiding evidence and lying under oath. Apple executives, including CEO Tim Cook, were singled out for disregarding compliance advice. This ruling follows a series of antitrust fines and lawsuits, including a recent $571 million penalty from the European Commission. In a notable development, Epic Games announced plans to resubmit Fortnite on iOS following the ruling.
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Apple willfully violated the injunction by maintaining anticompetitive barriers, including restricting developers from effectively directing users to alternative payment systems and imposing new commissions on off-app purchases. The judge cited Apple's use of hidden policies, lies under oath by executives, and deliberate choices to thwart competition.
Analysts warn the ruling could have a 'moderate negative impact' on Apple's services revenue by reducing commissions from alternative payment systems. This segment is critical as iPhone sales plateau, with services generating nearly $24 billion last quarter.
Epic Games CEO Tim Sweeney announced plans to resubmit Fortnite to Apple's App Store, leveraging the ruling's requirement for Apple to permit payment system alternatives. However, Apple's compliance and appeal timeline introduce uncertainty.
The European Union recently fined Apple $571 million over App Store practices, reflecting global scrutiny of its payment systems. These cases collectively challenge Apple's 15-30% commission model.
Judge Rogers detailed Apple's manipulation of policies to obscure external payment links, executives lying under oath, and intentionally low developer participation in alternative payment programs (only 34 out of 136,000 developers adopted the system).
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