Apple Found in Contempt of Court in Antitrust Case
A significant ruling has emerged from U.S. District Judge Yvonne Gonzalez Rogers, who has strongly criticized Apple for its failure to comply with a court injunction in an ongoing antitrust lawsuit brought by the makers of “Fortnite,” Epic Games.
Background of the Case
The legal conflict, initiated by Epic Games in 2020, alleges that Apple has unlawfully monopolized the App Store, capitalizing on an exclusive payment system that imposes commissions between 15% to 30% on in-app purchases. Although Gonzalez Rogers dismissed the claims of monopoly, she directed Apple to dismantle barriers that sustain its dominant payment infrastructure and instructed the company to permit developers to share alternative payment options with users.
Judge’s Ruling and Implications
In the recent ruling, Judge Gonzalez Rogers found Apple guilty of willful contempt for disregarding the injunction issued in 2021. The judge stated, “Apple’s continued attempts to interfere with competition will not be tolerated,” reinforcing the need for compliance with her order.
The judge emphasized that Apple must stop hindering developers from communicating payment alternatives to users and cannot impose new commissions on purchases made outside the app. Following her ruling, Gonzalez Rogers referred the matter to the U.S. Attorney for the Northern District of California to determine if criminal contempt proceedings are warranted.
Apple’s Response
In a statement released to CBS News, an Apple spokesperson expressed strong disagreement with the ruling, stating that the company intends to comply with the court’s directives while pursuing an appeal.
Key Findings Revealed
Judge Gonzalez Rogers pointed out that internal documents and testimonies indicated that Apple’s leadership, including CEO Tim Cook, knowingly opted for the most anticompetitive strategies. The judge criticized Apple’s vice president of finance, Alex Roman, accusing him of lying under oath regarding the company’s compliance efforts.
The judge highlighted that long-time executive Phillip Schiller had advised adherence to the injunction but was ultimately overruled by Cook, who was persuaded by Chief Financial Officer Luca Maestri against following Schiller’s advice.
Subsequent Legal Actions
The case has attracted further scrutiny, with the Justice Department filing a comprehensive antitrust lawsuit against Apple last year, claiming the company engaged in strategies to suppress competition in the digital marketplace.
Conclusion
The outcome of this latest court decision could have far-reaching implications for Apple and its App Store practices, paving the way for a more competitive environment in digital transactions. As the legal battles continue, the tech giant’s compliance with the court’s orders will be closely monitored.
