Apple Contempt Ruling for Antitrust Violations
A California court has held Apple in civil contempt for violating a 2021 injunction stemming from an antitrust lawsuit filed by Epic Games. The judge's order details how Apple intentionally circumvented the injunction, designed to prevent anti-competitive practices in its app store. The court found that Apple implemented workarounds, including charging a previously nonexistent 27 percent commission on off-app purchases, and erecting barriers to steer users away from alternative payment methods. These actions, according to the judge, were a "willful violation" intended to preserve Apple's revenue stream.
Executive Accountability
The court's order also criticizes specific Apple executives for misleading the court. Apple's vice president of finance, Alex Roman, was accused of providing testimony "replete with misdirection and outright lies." The judge noted that neither Apple nor its legal team corrected this testimony, leading to the conclusion that Apple adopted the false statements. While internal documents revealed that some executives advocated for compliance with the injunction, the judge highlighted that CEO Tim Cook ultimately chose to follow a path that prioritized maintaining a lucrative commission structure.
Consequences and Future Implications
The consequences for Apple are significant. The company faces an investigation for criminal contempt, and is ordered to cease its alleged workaround practices. This decision has significant implications for the broader tech industry, highlighting the potential consequences of ignoring court injunctions. Epic Games, meanwhile, has expressed its satisfaction with the outcome, indicating plans to reintroduce Fortnite to the iOS app store in the U.S.
Source: Mashable