Judge Yvonne Gonzalez Rogers has expressed her strong dissatisfaction with Apple in her recent 80-page ruling, which addresses Apple’s non-compliance with a previous court order stemming from its legal battle with Epic Games, the developer behind Fortnite. While Apple technically emerged victorious by avoiding a monopoly label, the court accused the tech giant of engaging in anti-competitive practices, particularly regarding payment options for app developers.
The ruling mandated that developers be allowed to link to external payment methods, permitting them to avoid Apple’s hefty 30% commission on in-app purchases. However, Apple responded by slashing its commission to 27% for these external transactions—essentially offering developers little incentive to change their payment processes. The company also implemented “scare screens” designed to dissuade users from opting for these alternative payment methods, thus prioritising its App Store revenue over its relationship with developers and its legal standing.
In her ruling, Judge Rogers made it clear that she is no longer tolerating Apple’s tactics, detailing the company’s attempts to circumvent her original orders. She stated that Apple knowingly obstructed the injunction’s purpose to preserve its revenue stream, suggesting that the company was underestimating the court’s awareness of its misconduct.
The ruling accuses Apple of being increasingly anti-competitive, noting that Vice President of Finance, Alex Roman, lied under oath regarding the company’s strategies and intentions. She also took CEO Tim Cook to task for disregarding internal advice that advocated for compliance, suggesting that Cook’s decision-making, influenced by financial advice, was detrimental.
Rogers emphasized the importance of adhering to the court’s injunction, stating that further delays in compliance would not be tolerated. Consequently, Apple has been found to have engaged in deliberate tactics to protect its profits, obstructing developers’ ability to inform users about alternative payment options.
The judge highlighted a pattern of dishonesty, revealing that Apple hid crucial decision-making processes from the court and misrepresented its compliance efforts. She noted that Apple developed a coded project called “Project Michigan” aimed at maintaining its revenue from the App Store.
Ultimately, the court held Apple in contempt, concluding that the company’s conduct demonstrated a wilful disregard for the injunction’s spirit and letter. The ruling mandates compliance and implies potential sanctions for their non-compliance, indicating a significant push for greater transparency and fairness in app marketplace operations.
Following the ruling, Apple indicated its intent to appeal, expressing disagreement with the decision while asserting it will ultimately comply with the court’s orders. Despite this, the court has made it clear that Apple’s time is up regarding its anti-competitive practices, and immediate compliance is required.
Fanpage: TechArena.au
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