Apple Ordered to Open App Store, Faces Criminal Probe

On April 30, a federal judge in the United States ruled that Apple Inc. had violated a previous court order, mandating immediate corrective actions to promote market competition. The court order required Apple to open its App Store, allowing users to adopt external payment methods. The judge, Y. Rogers, stated that the case would be referred to federal prosecutors to investigate whether Apple and one of its executives had committed criminal offenses.

Apple, in a statement, strongly opposed the ruling and announced plans to appeal. The ruling comes as a result of a lawsuit filed by Epic Games, the developer of the popular game "Fortnite," which accused Apple of anti-competitive practices. The judge found that Apple had not only failed to comply with the 2021 order to open up external payment options on the App Store but had also created new barriers to maintain its anti-competitive revenue streams.

The court's decision highlights Apple's continued enforcement of a 27% commission on in-app purchases, even when transactions are completed outside the App Store through web-based methods. This practice was deemed a violation of the court's previous directive to allow developers to guide users to external payment options without incurring Apple's commission fees.

In the latest ruling, the judge ordered Apple to implement a series of reforms to its App Store operations. These reforms include prohibiting Apple from collecting any commission on purchases made outside the App Store. The judge criticized Apple for underestimating the court's resolve, describing the company's actions as a "serious misjudgment."

The case has been referred to prosecutors to investigate potential criminal contempt of court. This development marks a significant shift in the ongoing legal battle between Epic Games and Apple, which has been ongoing since 2020. The dispute centers around Apple's control over its App Store and the commission fees it charges developers for in-app purchases.

The judge's decision underscores the growing scrutiny of tech giants and their market dominance. The ruling could set a precedent for future cases involving anti-competitive practices in the tech industry. It also highlights the importance of regulatory oversight in ensuring fair competition and protecting consumer interests. The outcome of this case will likely have broader implications for the digital marketplace, as other companies may face similar legal challenges in the future.