Apple violates App Store court order

[UNITED STATES] A U.S. federal judge has ruled that Apple Inc. violated a 2021 court injunction requiring the company to loosen restrictions on its App Store and allow developers to link to alternative payment options. Judge Yvonne Gonzalez Rogers found that Apple willfully obstructed the court's order and referred the case for potential criminal contempt charges. The ruling stems from an antitrust lawsuit filed by Epic Games, the maker of Fortnite, which accused Apple of monopolistic practices in its App Store.​

In 2020, Epic Games filed a lawsuit against Apple, alleging that the company's App Store policies, including a 30% commission on in-app purchases, were anticompetitive and monopolistic. In 2021, Judge Gonzalez Rogers issued an injunction requiring Apple to allow developers to communicate directly with users about alternative payment methods and to permit links to external payment options. However, Apple continued to enforce its original policies, leading to the recent contempt ruling.​

Apple had argued that it was in compliance with the injunction by introducing what it called a “link entitlement” process, which allowed developers to apply for permission to include links to external purchasing systems. However, the court found the process to be excessively burdensome and restrictive, with convoluted rules that deterred developers from using it. The company also required developers to submit detailed reports on link performance and interactions, which the court determined had a chilling effect on adoption.

The judge’s ruling also highlighted internal Apple communications presented during the proceedings, which suggested that executives were aware of the legal obligations but sought to minimize their practical impact. One internal email described the company’s strategy as “compliance theater,” a phrase that featured prominently in the judge’s opinion as evidence of Apple’s bad faith. These documents played a pivotal role in the court’s decision to pursue potential contempt proceedings.

Details of the Contempt Ruling

Judge Gonzalez Rogers criticized Apple for its actions, stating that the company "willfully violated" the court's order. She referred Apple and its Vice President of Finance, Alex Roman, to the U.S. Attorney's Office for potential criminal contempt charges. The judge also accused Roman of lying under oath during previous court proceedings. Apple has stated that it plans to appeal the ruling but will comply with the court's order in the meantime.​

Legal experts note that referrals for criminal contempt in civil antitrust cases are rare, marking a significant escalation in the ongoing dispute. If federal prosecutors decide to pursue the charges, Apple could face financial penalties or other sanctions beyond the civil realm. The referral also raises the stakes for other major tech firms under regulatory scrutiny, signaling a tougher stance on compliance enforcement from the judiciary.

Implications for the App Store Ecosystem

The ruling could have significant implications for the App Store ecosystem. If enforced, it may lead to reduced commission fees for developers and increased competition in the app marketplace. Epic Games has announced plans to return Fortnite to the App Store, a move that could influence other developers to reconsider their distribution strategies.​

Some industry analysts believe the ruling could hasten the arrival of third-party app marketplaces on iOS, especially in jurisdictions like the European Union, where new regulations under the Digital Markets Act already require Apple to allow alternative app stores. Although Apple has begun rolling out region-specific compliance plans, critics argue that its global practices remain resistant to change unless compelled by litigation.

Apple's Response and Future Outlook

Apple has expressed its intention to appeal the ruling, asserting that the App Store policies are essential for maintaining the security and integrity of its platform. The company has also stated that it will comply with the court's order while the appeal process is underway. The outcome of the appeal could set a precedent for future antitrust cases involving digital marketplaces.​

The recent contempt ruling against Apple underscores the growing scrutiny of digital marketplaces and their impact on competition. As the legal proceedings continue, the tech industry will be closely watching the developments, which could reshape the landscape of app distribution and developer relations.