Judge Slams Apple for Defying Court Orders in Epic Games Antitrust Case

In a landmark 80-page decision, Judge Yvonne Gonzalez Rogers expressed strong disapproval of Apple’s conduct following the Epic Games lawsuit. While Apple was not found to be a monopolist, the court ruled that Apple’s refusal to allow app developers to offer alternative payment methods outside its own platform was anticompetitive. The judge’s ruling mandated that developers be able to link to external payment options, enabling them to bypass Apple’s 30% commission on in-app purchases.

Instead of complying, Apple implemented a 27% commission for these external transactions and introduced “scare screens” to discourage users from using third-party payment options. This minimal commission reduction, combined with developers’ own payment processing fees, made the alternative payment route economically unviable for many developers.

Judge Rogers criticized Apple for deliberately circumventing the court’s injunction, accusing the company of deceptive practices and lying under oath. She highlighted that Apple’s Vice President of Finance, Alex Roman, provided false testimony, and that CEO Tim Cook chose to follow the advice of the CFO to maintain the lucrative commission structure rather than comply with the injunction.

The court found that Apple abused attorney-client privilege to delay proceedings and obscure its decision-making process, resulting in sanctions requiring Apple to cover the costs of special masters’ reviews and Epic’s attorneys’ fees. Apple’s internal project to comply with the injunction, codenamed “Project Michigan,” was halted after a stay was issued, further demonstrating noncompliance.

The judge emphasized that Apple’s conduct was not a minor technical violation but a willful disregard of the court’s orders aimed at preserving its revenue stream. Apple’s tactics included imposing onerous requirements on developers seeking to use external payment links and deploying aggressive warning screens to deter users. As a result, only a tiny fraction of developers participated in the external payment program.

Ultimately, the court held Apple in civil contempt, signaling serious consequences for its noncompliance and deceptive behavior. The ruling underscores the judiciary’s intolerance for attempts to evade antitrust injunctions and highlights the ongoing scrutiny of Apple’s App Store practices.

Broader Implications for Developers and the Tech Industry

This ruling has significant implications for app developers, platform operators, and regulators. It reinforces the principle that dominant platforms must not use their control to impose unfair fees or restrict payment options, which can stifle competition and innovation. Developers gain a stronger legal footing to offer alternative payment methods, potentially reducing costs and increasing flexibility in monetization.

For the tech industry, the decision signals heightened judicial vigilance against anticompetitive behaviors and deceptive practices by major players. It also highlights the importance of transparency and good faith compliance with court orders to maintain trust and avoid sanctions.

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