Apple “willfully selected to not comply” with a courtroom order to loosen its app retailer restrictions—and considered one of its executives lied underneath oath in regards to the firm’s plans, a federal decide wrote on Wednesday.
Choose Yvonne Gonzalez Rogers has referred the scenario to the US Lawyer’s Workplace in San Francisco “to research whether or not prison contempt proceedings are applicable.”
Apple didn’t instantly reply to a request for remark.
In 2021, Gonzalez Rogers presided over a lawsuit introduced by Fortnite developer Epic Video games over the iPhone maker’s allegedly anticompetitive practices that hampered the flexibility of builders to generate income from the App Retailer. This included Apple’s coverage of taking a 30 p.c fee on sure in-app purchases.
Whereas Gonzalez Rogers in the end dominated in favor of Apple on most counts, she ordered the corporate to start permitting builders to market methods to make in-app purchases outdoors of the App Retailer ecosystem. Apple responded by reducing its fee to 27 p.c on purchases made elsewhere, however it additionally launched a collection of different modifications, together with exhibiting so-called scare screens, to dissuade customers from making purchases outdoors its ecosystem.
Final 12 months, Epic challenged in courtroom how Apple was responding to the order, main Gonzalez Rogers to require the tech large to show over paperwork that contributed to Wednesday’s contempt ruling.
Apple pursued its noncompliance technique “with the specific intent to create new anticompetitive limitations which might, by design and in impact, preserve a valued income stream; a income stream beforehand discovered to be anticompetitive,” Gonzalez Rogers wrote in her ruling on Wednesday. “That it thought this courtroom would tolerate such insubordination was a gross miscalculation.”
She additionally mentioned that Apple executives tried to cover the actual motivations for the modifications. “In stark distinction to Apple’s preliminary in-court testimony, contemporaneous enterprise paperwork reveal that Apple knew precisely what it was doing and at each flip selected probably the most antiaggressive possibility,” Gonzalez Rogers mentioned. She went so far as accusing Alex Roman, a vice chairman of finance at Apple, of mendacity throughout testimony through which he talked about how Apple got here to its choice to go together with a 27 p.c fee on purchases made outdoors the App Retailer. “The testimony of Mr. Roman was replete with misdirection and outright lies,” the decide mentioned.
Roman didn’t instantly reply to a request for remark.
Citing inner Apple paperwork from 2023, Gonzalez Rogers mentioned Apple’s App Retailer chief Phillip Schiller “had advocated that Apple adjust to the injunction” however that CEO Tim Cook dinner “ignored Schiller and as a substitute allowed Chief Monetary Officer Luca Maestri and his finance crew to persuade him in any other case.”
The decide demanded that Apple instantly comply along with her earlier order. “That is an injunction, not a negotiation,” she wrote. “There aren’t any do-overs as soon as a celebration willfully disregards a courtroom order. Time is of the essence. The Courtroom won’t tolerate additional delays. As beforehand ordered, Apple won’t impede competitors.”
Epic Video games CEO Tim Sweeney posted on X that the brand new ruling would carry an finish to “Apple’s 15-30% junk charges.”
