US Judge Finds Apple Violated App Store Reform Order, Refers to Prosecutors

A California federal judge has ruled that Apple violated a court order requiring the company to allow more competition in its App Store, particularly in app downloads and payment methods. The ruling, issued on Wednesday by US District Judge Yvonne Gonzalez Rogers, follows an antitrust lawsuit brought by Fortnite developer Epic Games.

In a sweeping 80-page decision, Gonzalez Rogers determined that Apple failed to comply with a previous injunction she imposed in 2021, which aimed to open up the App Store to more competition. The judge said Apple’s actions showed a clear disregard for the court’s directive.

“This is an injunction, not a negotiation,” Gonzalez Rogers stated firmly. “There are no do-overs once a party willfully disregards a court order.” She went on to announce that she would refer Apple to federal prosecutors for a criminal contempt investigation.

Epic Games, which has long accused Apple of stifling competition and charging excessive commission fees, raised concerns in March 2024 that Apple’s practices had only worsened. Epic claims that Apple imposed a new 27% fee on developers for transactions that occur outside the App Store. This, combined with Apple’s standard 30% commission for in-app purchases, effectively prevents developers from exploring more affordable payment alternatives.

Moreover, Epic alleges that Apple began discouraging external payment methods by warning users about the supposed dangers of external links, which they called an attempt to “manipulate” user behavior and maintain its monopolistic grip.

Apple, for its part, has denied any wrongdoing. In a filing, the company argued it had made significant efforts to comply with the court order while trying to protect its business model and consumer interests.

At a prior hearing, Gonzalez Rogers suggested that Apple’s recent changes appeared to have one goal: to stifle competition. Now, with the referral to prosecutors, the company faces serious legal scrutiny over its continued non-compliance.

Neither Apple nor Epic Games has provided immediate comment on the ruling.

Source: CNN – US judge rules Apple violated order to reform App Store