Apple Inc. is facing a serious legal challenge after a U.S. federal judge ruled that the company did not follow a court order related to an antitrust case involving its App Store. This ruling is a major update in the ongoing legal fight started by Epic Games, the maker of the popular game “Fortnite.”
U.S. District Judge Yvonne Gonzalez Rogers decided on Wednesday that Apple did not comply with a 2021 order meant to encourage more competition for app downloads and payment methods.
The original order required Apple to let developers direct users to alternative payment options outside the App Store, which could help them avoid Apple’s commission fees that range from 15% to 30%.
In her detailed 80-page ruling, Judge Gonzalez Rogers stated that Apple “willfully chose not to comply” with the order. She noted that Apple’s actions, which included new restrictions and a 27% commission on outside transactions, aimed to create “new anticompetitive barriers” and protect its revenue. “Apple’s ongoing efforts to obstruct competition will not be accepted,” the judge said, stressing that the order was not open for negotiation.
The judge’s decision has immediate effects for Apple. The company must stop blocking developers from sharing alternative payment methods with users and cannot impose its new commission fees on purchases made outside the App Store. Judge Gonzalez Rogers also denied Apple the ability to delay her ruling, citing “repeated delays and the seriousness of the conduct.”
Additionally, the judge referred Apple and one of its finance executives, Alex Roman, to federal prosecutors for a possible criminal contempt investigation. She sharply criticized Apple’s compliance efforts, claiming that Roman provided misleading testimony and that CEO Tim Cook ignored internal advice advocating for compliance.
Apple disagrees with the ruling and plans to appeal. An Apple spokesperson stated, “We strongly disagree with the decision. We will comply with the court’s order and we will appeal.”
This ruling is a significant win for Epic Games and other developers who have challenged Apple’s App Store rules. Epic CEO Tim Sweeney called the decision a major victory, saying it forces Apple to compete fairly with alternative payment services. Analysts believe the ruling could hurt Apple’s important Services revenue.
It may also lead to more regulatory scrutiny of Apple’s practices both in the U.S. and abroad. Following the news, Apple’s stock dropped slightly in after-hours trading.