Apple Antitrust Violation: Injunction Breach & Penalties

Apple Found in Contempt for App Store Antitrust Violation

Judge ruled Apple violated injunction to allow alternative payments, facing fines and potential criminal probe after Epic Games lawsuit and DOJ scrutiny. Apple disagrees and will appeal.

Apple Violated Injunction in Antitrust Case: Key Takeaways

• Judge's Ruling: A federal judge found Apple willfully violated a court injunction in an antitrust case filed by Epic Games (Fortnite).
• Injunction Details: Apple was ordered to lower barriers protecting its exclusive payment system for in-app digital transactions and allow developers to display links to alternative payment options.
• Violation: The judge stated Apple's actions were in violation of a 2021 injunction designed to "restrain and prohibit the iPhone maker's anticompetitive conduct" and pricing.
• Consequences: Apple was held in contempt of court and ordered to stop impeding developer communication with users and levying new commissions on off-app purchases.
• Apple's Response: Apple strongly disagrees with the decision and will appeal, while complying with the court's order.
• Epic's Lawsuit: Epic Games initially filed the antitrust lawsuit in 2020, alleging an illegal monopoly around Apple's App Store and its commission structure (15%-30%).
• Supreme Court: The Supreme Court rejected Apple's appeal in January 2024.
• Internal Conflicts: Judge accused Apple's VP of Finance of lying under oath. Phillip Schiller advocated compliance, but Tim Cook sided with the CFO and finance team.
• Potential Criminal Charges: The judge referred the matter to the U.S. Attorney for investigation of potential criminal contempt proceedings.
• DOJ Lawsuit: The Justice Department filed a comprehensive antitrust lawsuit against Apple last year, alleging efforts to stifle competition