Judgment that may potentially implicate Apple in court over a significant issue
Dispute Over App Store Payments Leads to Contempt Allegations Against Apple
In a surprising turn of events, Apple faced severe condemnation on May 1, 2025, as a US federal judge accused the tech titan of violating a court order and engaging in anticompetitive practices. This ruling could disrupt one of Apple's most profitable revenue streams—the App Store—and potentially lead to criminal charges.
Apple was chastised for ignoring a 2021 injunction that required it to allow alternative payment systems within its App Store, thereby avoiding commissions of up to 30%. The ruling, issued by US District Judge Yvonne Gonzalez Rogers in California, not only ceased Apple from charging commissions on transactions made outside the App Store but also referred the company to federal prosecutors for potential criminal investigation into contempt.
Epic Games, the creators of Fortnite, had accused Apple of flouting the 2021 injunction. Despite initially finding that Apple's App Store practices did not breach federal antitrust law in the 2021 trial, Judge Gonzalez Rogers had ordered the company to allow developers to redirect users to external websites for purchases. Apple nominally complied, but it imposed a 27% commission on revenue earned through these external transactions, prompting Epic to accuse Apple of bypassing the court order's spirit.
In her 80-page opinion, Gonzalez Rogers stated that Apple had "willfully disobeyed" the 2021 injunction, intending to maintain a lucrative revenue stream. She went on to say, "That Apple thought this court would tolerate such insubordination was a gross miscalculation." The judge further alleged that Apple executive, Alex Roman, provided false testimony under oath and failed to correct these falsehoods. Apple, when challenged about the ruling, disputed the court's conclusions, vowing to comply but also threatening an appeal.
The ruling now permits developers to freely link to external payment systems without incurring Apple's commission, potentially saving billions annually. Marketing strategies are expected to undergo a shift as iOS user acquisition becomes more profitable. The referral of Apple's conduct to the US Attorney's Office could have significant legal consequences for the iPhone maker. Although it is unusual for contempt in civil cases to result in a prison sentence, the federal rules allow for this possibility, making the coming weeks particularly uncomfortable for Alex Roman.
Insights:
- The judge's ruling against Apple may significantly affect one of its most lucrative revenue streams, the App Store.
- Apple's executive, Alex Roman, allegedly provided false testimony under oath.
- The referral to the US Attorney's Office could lead to criminal charges for Apple, potentially including prison sentences.
- The judge's ruling appears to pose a significant threat to Apple's App Store, a revenue stream that is likely one of the tech giant's most lucrative.
- Allegations against Apple's executive, Alex Roman, claim that he provided false testimony under oath during the proceedings.
- The possibility of criminal charges against Apple, including prison sentences, looms large following the referral to the US Attorney's Office.
- The implications in the business and technology world are evidentiary, as this case could set a precedent for how finance and business practices in the App Store environment are regulated and enforced.
