Judge Orders Apple to Ease App Store Restrictions, Cites Antitrust Violations
1min read A federal judge has ruled that apple inc. violated an antitrust decision related to its control over the App Store, ordering the company to ease restrictions. The judge, Yvonne Gonzalez rogers, criticized Apple's chief executive officer, tim Cook, and accused another executive of perjury. apple plans to appeal the decision, which was made in response to a long-running antitrust lawsuit filed by Epic Games, the developer of the popular game "Fortnite."
The lawsuit, which has been ongoing for several years, aims to change the way Apple charges third-party developers for using its App Store. In a previous ruling, Judge Gonzalez Rogers ordered Apple to allow developers to guide users to alternative payment methods, bypassing Apple's 30% commission. The judge found that Apple's initial 30% commission rate "obviously" gave the company an "excessively competitive operating profit rate."
Judge Gonzalez Rogers stated that Apple intentionally chose not to comply with the court's injunction, with the clear intent of creating new anti-competitive barriers. She also noted that Apple obstructed the injunction's goals and continued its anti-competitive behavior to maintain its revenue streams. Apple, however, strongly disagrees with the ruling and plans to comply with the court's order while preparing an appeal.
The judge's decision comes after a series of hearings where it was revealed that Apple had implemented new measures to circumvent the court's order. These measures included charging a 27% fee on external purchases and displaying warnings about third-party payment methods, which were seen as attempts to obstruct the court's directive. The judge's ruling is a significant blow to Apple, as it not only affirms the earlier antitrust decision but also escalates the legal consequences for the company.
By referring the case to federal prosecutors, the judge is effectively seeking a criminal investigation into Apple's conduct, which could potentially lead to fines or other penalties. This move underscores the seriousness of the allegations and the court's determination to enforce its rulings. The outcome of this investigation could have far-reaching implications for Apple and the broader tech industry, as it sets a precedent for enforcing antitrust laws and promoting competition in digital markets.
