Apple's App Store Practices Found in Contempt of Court (AP News)
05/04/25 10:40
In a significant legal development, U.S. District Judge Yvonne Gonzalez Rogers ruled on April 30, 2025, that Apple Inc. violated a 2021 injunction related to its App Store policies. The injunction, stemming from the antitrust lawsuit filed by Epic Games, mandated that Apple allow app developers to direct users to alternative payment methods outside of Apple's ecosystem.(AP News)
Despite the court's directive, Apple implemented a new policy in 2024, imposing a 27% commission on certain out-of-app purchases and introducing barriers that hindered developers from communicating directly with users about alternative purchasing options. Judge Gonzalez Rogers found these actions to be in direct violation of the court's order, stating that Apple "willfully disregarded a court order" and that such attempts to interfere with competition "will not be tolerated" .(MarketWatch, Reuters)
The judge also referred Apple and its Vice President of Finance, Alex Roman, to federal prosecutors for a criminal contempt investigation, citing misleading testimony regarding the company's compliance efforts. Internal communications revealed that Apple's leadership, including CEO Tim Cook, chose to ignore advice advocating for compliance, opting instead for strategies that maintained the company's revenue streams from the App Store .(Reuters, MarketWatch)
As a result of the ruling, Apple is barred from collecting commissions on off-app purchases and from impeding developers' ability to communicate with users about alternative payment methods. The company has announced plans to appeal the decision but stated it will comply with the court's order in the meantime.(Reuters)
Epic Games CEO Tim Sweeney hailed the ruling as a victory for developers and consumers, emphasizing the importance of fair competition in digital marketplaces. The decision marks a significant moment in the ongoing scrutiny of Apple's App Store practices and could have broader implications for the tech industry's approach to platform management and developer relations.(Reuters, Investopedia)
