Apple Investigated for Possible Criminal Contempt Over Court Ruling

A U.S. district judge has flagged Apple for a possible criminal contempt case after determining that the tech giant knowingly flouted her injunction regarding anti-competitive practices, as revealed through internal documents and testimony during legal proceedings related to Epic Games.

A district judge in California, Yvonne Gonzalez Rogers, has referred Apple to the U.S. Attorney's Office for the Northern District of California, indicating a possible criminal contempt investigation against the company. This referral follows her findings that Apple has willfully breached a court injunction aimed at preventing anti-competitive practices, particularly those involving its App Store policies. The ruling stems from a 2021 lawsuit filed by Epic Games, developer of the immensely popular Fortnite, which contended that Apple’s App Store monopolized payment processing, thus subjecting developers to exorbitant commission fees ranging from 15% to 30%.

Judge Gonzalez Rogers characterized testimony from Apple’s vice president of finance, Alex Roman, as "outright lies" under oath, expressing that her findings confirm Apple’s deliberate defiance of her judicial orders. She disclosed that internal company documents showed Apple was well aware of its violations, yet chose to pursue the most anti-competitive paths available.

In a response to the ruling, an Apple spokesperson stated that the company strongly disagrees with the judge's assessment and plans to appeal the decision. Furthermore, the judge highlighted that Apple had implemented new barriers to discourage developers from linking to alternative payment methods, exacerbating competitive practices already deemed unfair.

In a notable twist, Tim Sweeney, CEO of Epic Games, announced that his company plans to reintroduce Fortnite to the iOS App Store next week, should Apple broaden its policies to allow for commission-free transactions globally. Sweeney's message hints at a potential thawing of hostilities between the two companies, as he heralds a shift away from what he termed the "Apple Tax" in both the United States and Europe.