Tech giant Apple under fire for alleged App Store rule breaches in legal battle with Fortnite developers
Pulling the Plug on Apple: Judge Slaps Apple with Contempt Charge for Skirting Injunction in Epic Games Feud
In a monumental twist in the drawn-out legal battle with Fortnite's creator, Epic Games, a U.S. federal judge has taken a firm stand against Apple, finding the tech behemoth guilty of intentionally violating a court order by refusing to lift app-developer restrictions.
The ruling signifies a pivotal moment, paving the road for the possible reemergence of Fortnite in the iOS App Store of the United States.
In a damning 80-page decision issued on Wednesday, District Judge Yvonne Gonzalez Rogers exposed Apple's failure to adhere to her 2021 injunction, which mandated the removal of barriers that prevented app developers from linking users to alternative payment methods outside the App Store.
According to the judge, Apple's actions were a deliberate attempt to sabotage competition by continuing to manipulate its market position. She even hinted at referring both Apple and its Vice President of Finance, Alex Roman, to federal prosecutors for potential criminal proceedings.
"Enough is enough," Gonzalez Rogers wrote, stating that such recalcitrance amounts to "once a party wilfully disregards a court order."
Outright Deception
The judge accused Apple of fabricating evidence, labeling Roman's testimony "full of misdirection and untruths." Internal Apple documents, she asserted, contradicted sworn statements made during the trial.
The initial legal action between Epic Games and Apple stems back to Epic's 2020 lawsuit, alleging that Apple's monopolistic practices led to a 30% commission on in-app purchases. In response to Epic's introduction of its own payment system within the game, Apple booted Fortnite from its App Store.
Gonzalez Rogers ruled in favor of Epic Games in 2021, instructing Apple to let developers direct users to external payment channels. However, Apple introduced a 27% fee for transactions occurring outside the App Store, a move that Epic argued was a blatant violation of the spirit of the injunction.
Wednesday's ruling saw the judge side with Epic Games, barring Apple from charging any such fee.
Apple responded by stating that it "strongly disagrees" with the outcome but will comply with the order nonetheless. Epic Games' CEO Tim Sweeney hailed the verdict as a "huge victory" for app developers and consumers, confirming the return of Fortnite to the iOS App Store within the upcoming week.
"Now, developers can pass along savings to customers through lower prices," Sweeney said, adding that the ruling would force Apple to compete rather than suppress competition. This turn of events is a significant step in the broader European Union's effort to enforce digital competition rules and prevent big tech companies from exploiting their market positions.
- Despite Apple's initial evidence and the testimony of its Vice President of Finance, Alex Roman, internal documents contradicted them, implying deception in the legal proceedings.
- The ongoing lawsuit between Epic Games and Apple, initiated over allegations of Apple's monopolistic practices and a 30% commission on in-app purchases, has taken a significant turn.
- Gonzalez Rogers, the U.S. federal judge, has confirmed that Apple's intentional violation of the 2021 injunction to remove barriers for external payment methods is a deliberate attempt to manipulate its market position and stifle competition.
- The recent ruling marks a victory for general-news, business, technology, and politics, as it signals the possible reentry of Fortnite into the iOS App Store of the United States.
- The judge's decision to bar Apple from charging fees for transactions outside the App Store has broader implications, as it aligns with the European Union's efforts to enforce digital competition rules and prevent large tech companies from exploiting their positions.
