US Judge Rules Apple Violates Order to Reform App Store

Apple violated a U.S. court order, requiring iPhone manufacturers to offer greater competition for app downloads and payment methods in its profitable app store, and will be forwarded to federal prosecutors.

Oakland's U.S. District Judge Yvonne Gonzalez Rogers said in an 80-page ruling that Apple failed to comply with her previous injunction, imposed in an antitrust lawsuit filed by "Fortnite" maker Epic Games.

"Apple continues to try to interfere with competition will not be tolerated," Gonzalez Rogers said, adding: "It's an injunction, not a negotiation. One party deliberately ignores the court order and there is no action."

Gonzalez Rogers forwarded Alex Roman, one of Apple and its executives, to federal prosecutors for a criminal contempt investigation into his actions.

The judge wrote that Roman testified about Apple's steps to comply with her ban "full of misleading and thorough lies."

"We strongly disagree with this decision. We will comply with the court's order and we will appeal," Apple said in a statement.

Epic Games CEO Tim Sweeney said the judge's orders have achieved a major victory for developers and consumers.

"It forces Apple to compete with other payment services, not stopping them, and that's what we've always wanted," Sweeney told reporters.

Sweeney said Epic Games’ goal is to bring Fortnite back to the Apple App Store next week. Apple proposed Epic's account in 2020 after the company allowed iPhone users to navigate outside Apple's ecosystem for better payment offers.

Epic accuses Apple of stifling competition to conduct app downloads and overcharge commissions on in-app purchases.

Gonzalez Rogers found Apple violated California competition law in 2021 and ordered the company to allow developers to gain more freedom to direct app users to other payment methods.

Apple failed to convince the U.S. Supreme Court to crack down on the ban last year.

Epic Games told the court in March 2024 that Apple "blatantly" violated the court's orders, including a new fee of 27% on app developers when Apple customers complete app purchases outside the app store. Apple charges developers 30% of App Store purchase fees.

Apple also began displaying messages warning customers that could cause potential dangers of external links to block non-app payments, alleged epic games, saying Apple's new system is "commercially unavailable."

Apple denies any misconduct. The company told Gonzalez Rogers in a March 7 court filing that it had made “extensive efforts” to comply with the ban “in keeping the basic characteristics of Apple’s business model and maintaining the basic characteristics of consumers.”

Gonzalez Rogers suggested in an earlier hearing that Apple had no other purpose for changes in its app store "beyond killing competition."

In a ruling on Wednesday, Gonzalez Rogers said Apple was immediately banned from hindering developers' ability to communicate with users and the company is not allowed to make external app purchases on its new committee.

She said Apple could not ask her to suspend her ruling, "because of repeated delays and severity of the conduct." She was not aware of whether criminal cases should be opened.

"The administration will also decide whether the apple should be deprived of the fruit of infringement, and in addition to any fines that prevent future misconduct, the apple should be deprived of the infringement."