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Judge Rules Apple Violated Injunction, Refers Case for Criminal Contempt

Apple must cease external purchase commissions and faces a criminal contempt probe after defying a 2021 court order in its legal battle with Epic Games.

Photo: Andrew Caballero-Reynolds / AFP (Getty Images)
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An Apple logo is seen at the entrance of an Apple Store in downtown Brussels, Belgium March 10, 2016.   REUTERS/Yves Herman
Fortnite game graphic is displayed on a smartphone in front of Apple logo in this illustration created on May 2, 2021. REUTERS/Dado Ruvic/Illustration

Overview

  • A federal judge found Apple in willful violation of a 2021 injunction requiring alternative payment options in its App Store, barring the company from charging fees on external purchases.
  • The court referred Apple and its Vice President of Finance, Alex Roman, to federal prosecutors for a criminal contempt investigation, citing false testimony under oath.
  • Apple's tactics, including a 27% external purchase fee and 'scare screens,' were deemed deliberate efforts to undermine competition and maintain revenue streams.
  • Apple announced plans to comply with the ruling and appeal, while Epic Games' CEO Tim Sweeney confirmed Fortnite's return to iOS next week and proposed ending litigation if Apple adopts a global commission-free framework.
  • The ruling could reshape the app economy by reducing developer costs and increasing competition, with global implications as similar regulatory pressures mount in Europe.