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Apple Referred For Criminal Contempt Investigation By Judge
- Apple is facing potential criminal contempt proceedings after federal judge Yvonne Gonzalez Rogers found the company in willful violation of a 2021 injunction related to the Epic Games court case.
- Judge Rogers accused Apple of thwarting the injunction's goals to maintain its revenue stream and called out Apple VP of Finance Alex Roman for lying to the court.
- Tim Cook's actions were also criticized, with the judge stating that Apple chose the most anticompetitive options despite knowing their obligations.
- The judge highlighted Apple's introduction of policies collecting a 27 percent commission, close to the previous 30 percent from in-app purchases, violating the injunction.
- Judge Rogers referred the matter to state attorneys to consider pursuing criminal contempt against both Roman and Apple, emphasizing that willful disregard of court orders will not be tolerated.
- Apple, while disagreeing with the decision, stated it would comply with the court order and intends to appeal.
- Epic Games welcomed the ruling, with CEO Tim Sweeney seeing it as a victory for developers to offer their payment services alongside Apple's.
- The ruling stems from the 2020 lawsuit where Epic Games aimed to allow third-party payment systems and app stores on Apple devices, leading to the 2021 injunction mandating changes to the App Store.
- The judge previously found Apple in violation of California's unfair competition law for limiting developers from directing users to payment methods bypassing Apple's system.
- The ruling marks a significant rebuke of Apple's practices and behavior, with Epic Games securing concessions to promote competition and alternative payment systems.
- Overall, the legal battle between Apple and Epic Games underscores the increasing scrutiny on tech giants' dominance and anticompetitive practices in the digital market.
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