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Apple Faces Criminal Contempt Risk as Judge Slams App Store Practices

Word on the StreetThursday, May 1, 2025 4:00 am ET
1min read

A recent ruling by a U.S. federal judge has found apple inc. in violation of a previous court mandate, pushing the tech giant into a critical regulatory spotlight. On April 30th, Judge Yvonne Gonzalez rogers determined that apple failed to comply with a 2021 directive which ordered the company to allow for external payment systems in its App Store. This directive aimed to foster competition by enabling developers to bypass Apple's built-in payment mechanisms, which typically levy up to a 30% commission on transactions.

Judge Rogers stated that Apple not only ignored the mandate but also implemented additional anti-competitive barriers, perpetuating its contentious revenue model. The ruling has escalated to the extent that the case will be submitted to federal prosecutors to assess potential criminal contempt charges against Apple and one of its executives.

In response, Apple expressed strong disagreement with the ruling and announced plans to appeal. The company defended its position by asserting that it had already made modifications to allow developers to direct users to complete transactions via the web, albeit while maintaining a 27% commission on such transactions.

This case has gained significant attention following accusations from Epic Games, the creator of Fortnite, which claimed Apple's continued anti-competitive practices defied the 2021 court decision. Supporting Epic's assertions, Judge Rogers' ruling highlighted Apple's knowledge of its obligations and deliberate obstruction in achieving the injunction's goals.

Epic's CEO, Tim Sweeney, reacted to the ruling by heralding the impending return of Fortnite to the U.S. App Store within the next week, stirring anticipation among the gaming community. The decision marks a pivotal moment in ongoing debates over the balance of power and fairness within digital marketplaces.

Ask Aime: What could be the impact of Apple's regulatory violation on the App Store ecosystem?

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