U.S. Judge Rules Apple Violated Court Order on App Store Reforms, Refers Case for Criminal Probe
A federal judge in California has ruled that Apple violated a court order designed to increase competition within its App Store, escalating the tech giant’s legal battle with “Fortnite” developer Epic Games. The ruling could lead to a criminal contempt investigation.
In an 80-page decision issued on Wednesday, U.S. District Judge Yvonne Gonzalez Rogers stated that Apple willfully failed to comply with a 2021 injunction that required the company to give app developers greater freedom in directing users to alternative payment methods.
“Apple’s continued attempts to interfere with competition will not be tolerated,” the judge wrote. “This is an injunction, not a negotiation. There are no do-overs once a party willfully disregards a court order.”
Gonzalez Rogers has referred the matter to federal prosecutors for possible criminal contempt proceedings – a rare and serious move that could heighten pressure on the iPhone maker.
The legal dispute stems from a lawsuit filed by Epic Games, which accused Apple of maintaining a monopoly over app distribution and charging excessive commission fees. The judge previously found Apple had breached California competition laws and ordered it to allow developers to link users to external payment systems.
However, Epic recently told the court that Apple was undermining the order by introducing a 27% fee for purchases made outside the App Store and by displaying alarming warnings about the use of external links. The game developer argued these measures rendered Apple’s compliance “commercially unusable.”
Apple has denied any wrongdoing and insists it has taken significant steps to adhere to the court’s mandate while protecting its business model and users. The company stated in a March filing that it made “extensive efforts” to comply with the ruling.
Apple had previously attempted to overturn the injunction at the U.S. Supreme Court, but the effort was unsuccessful.
The case underscores the growing regulatory scrutiny over tech giants’ control of digital marketplaces and could set a precedent for how platform owners balance competition and consumer protection.
