Apple Faces Criminal Contempt Probe Over App Store Antitrust Order

Apple Inc. (NASDAQ: AAPL) is under scrutiny after a U.S. federal judge ruled it violated a court order intended to boost competition in its App Store. The ruling stems from a long-running antitrust case brought by Epic Games, creator of "Fortnite." U.S. District Judge Yvonne Gonzalez Rogers found Apple failed to comply with her 2021 injunction mandating the company to allow developers to direct users to alternative payment options.

In her 80-page decision, Gonzalez Rogers condemned Apple’s actions, stating the tech giant “willfully disregarded” the court's orders and that its efforts to obstruct competition “will not be tolerated.” She referred Apple and its Vice President of Finance, Alex Roman, to federal prosecutors for a potential criminal contempt investigation, citing testimony that included “misdirection and outright lies.”

Apple, which had previously lost its appeal to the U.S. Supreme Court, responded by stating it "strongly disagrees" with the decision but will comply while preparing an appeal. Epic Games CEO Tim Sweeney welcomed the decision, calling it a win for developers and consumers. He also revealed plans to relaunch Fortnite on the App Store.

Epic accused Apple of stifling competition through high in-app purchase commissions and restrictive developer rules. The company highlighted Apple’s introduction of a 27% fee for out-of-app purchases and warning messages about third-party payment links as clear violations. Apple denied wrongdoing, asserting its compliance efforts were aimed at protecting users and preserving its business model.

Judge Gonzalez Rogers has now barred Apple from imposing the new fee and from obstructing communication between developers and users. She declined to pause the ruling, leaving the decision on potential prosecution to the U.S. executive branch. The case marks a significant escalation in the battle over digital marketplace fairness.