In a landmark decision, U.S. District Judge Yvonne Gonzalez Rogers found Apple in contempt of court for willfully violating a 2021 injunction aimed at curbing its App Store's anticompetitive practices. The ruling stems from Apple's introduction of a 27% commission on certain out-of-app purchases and restrictions on developers communicating alternative payment options to users—actions deemed obstructive to competition.
Judge Rogers criticized Apple's leadership, noting that CEO Tim Cook ignored internal advice to comply with the court's order. The judge also highlighted that Apple's Vice President of Finance, Alex Roman, lied under oath regarding the company's policies. As a result, the case has been referred to the U.S. Attorney's Office for potential criminal contempt charges.
Epic Games' CEO, Tim Sweeney, hailed the ruling as a significant win for developers and consumers, emphasizing the importance of open digital ecosystems. Despite the legal costs exceeding $1 billion, Sweeney believes the fight was necessary to challenge Apple's monopolistic control over the App Store.
In response to the ruling, Epic announced new incentives for developers, including a 0% revenue share on the first $1 million in app earnings per year and the ability to create "webshops" for more cost-effective out-of-app purchases. These moves aim to strengthen Epic's marketplace and challenge Apple's dominance.
Apple plans to appeal the decision but must comply with the court's order in the meantime. The ruling has significant implications for the tech industry, potentially reshaping the dynamics of app distribution and digital commerce.