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Apple Found in Contempt of Court in Antitrust Case
A federal judge has issued a strong reprimand to Apple, determining that the tech giant willfully contravened a court injunction stemming from an antitrust lawsuit initiated by Epic Games, the developer behind “Fortnite.”
U.S. District Judge Yvonne Gonzalez Rogers had mandated that Apple dismantle the barriers surrounding its once-exclusive payment system for in-app digital transactions, allowing developers the freedom to present links to alternative payment options. On Wednesday, she ruled that Apple had breached a 2021 injunction aimed at curbing its anticompetitive conduct and pricing strategies.
“Apple’s ongoing efforts to hinder competition will not be tolerated,” stated Gonzalez Rogers in her ruling, which found Apple in contempt of court.
The judge ordered Apple to refrain from obstructing developers’ communication with users, as well as from imposing any new commission on purchases made outside its app environment.
Following the ruling, an Apple representative expressed strong disagreement with the decision, stating, “We will comply with the court’s order and we will appeal.”
Background of the Case
Epic Games initiated the antitrust lawsuit in 2020, alleging that Apple had established an illegal monopoly through its lucrative App Store, which reportedly generates billions annually from a payment system that levies commissions ranging from 15% to 30% on in-app transactions.
While Gonzalez Rogers dismissed the monopoly claims, she nonetheless instructed Apple to relax its payment system’s restrictions and to permit developers to highlight alternative options. In January 2024, the Supreme Court declined to hear Apple’s appeal regarding the case.
Judge Gonzalez Rogers outlined that, contrary to Apple’s initial statements in court, internal documents revealed a conscious choice by Apple to engage in anticompetitive practices. She accused Alex Roman, Apple’s vice president of finance, of “outright” perjury.
“Internally, Apple executive Phillip Schiller had supported compliance with the injunction, but CEO Tim Cook disregarded Schiller’s advice, allowing CFO Luca Maestri and his finance team to steer him in another direction. Cook made a poor choice,” Gonzalez Rogers noted.
Potential Legal Consequences
The judge has referred the matter to the U.S. Attorney for the Northern District of California for potential investigation into criminal contempt proceedings.
The U.S. Justice Department had already filed a comprehensive antitrust lawsuit against Apple last year, contending that the company engaged in numerous practices aimed at suppressing competition.
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www.cbsnews.com