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Apple and its CEO, Tim Cook, face serious legal consequences after a federal judge ruled that the tech giant violated an antitrust injunction from its battle with Epic Games over App Store restrictions.

 The blistering decision, issued by US District Judge Yvonne Gonzalez Rogers, criticized Cook personally and raised the specter of criminal contempt charges against the company and its top executives.

Judge Accuses Apple of Willful Defiance

In her ruling, Judge Rogers stated that Apple had “willfully disregarded” a 2021 court order requiring the company to allow app developers to offer alternative payment options outside its App Store ecosystem.

 This injunction was a partial outcome of Apple’s high-profile legal fight with Epic Games, the maker of “Fortnite,” which accused Apple of abusing its market power by enforcing hefty in-app purchase fees.

“This is an injunction, not a negotiation. There are no do-overs once a party willfully disregards a court order,” Rogers wrote.

The judge referred the matter to the U.S. Attorney’s Office, signaling the potential for criminal contempt charges against Apple and certain executives.

Tim Cook “Chose Poorly,” Judge Says

A particularly damaging aspect of the ruling was the judge’s criticism of Tim Cook’s involvement. According to Rogers, internal discussions at Apple showed that the senior vice president of worldwide marketing, Philip Schiller, had “advocated that Apple comply with the Injunction.” However, “Tim Cook ignored Schiller and instead allowed Chief Financial Officer Luca Maestri and his finance team to convince him otherwise,” she wrote.

“Cook chose poorly,” Rogers emphasized, placing blame directly on the CEO’s decision-making.

Accusations of Lying Under Oath

In a stunning allegation, Rogers also stated that Apple’s vice president of finance, Alex Roman, “outright lied under oath” during the proceedings.

“To hide the truth…Roman…outright lied under oath,” Rogers wrote, adding that Apple “adopted the lies and misrepresentations to this Court.”

Roman had testified that Apple had not evaluated the costs to developers when using alternative payment systems, and the company had not set a commission for such purchases before January 16, 2024. 

Internal records revealed that Apple had already outlined a plan, including a 27% commission, as early as July 2023. Rogers said this contradicted Roman’s sworn statements and demonstrated deliberate deception.

https://usaherald.com/take-it-down-act-targets-deepfakes-and-revenge-porn-with-tough-new-rules/

Apple Ordered to Cease External Link Commissions

The 2021 injunction had prohibited Apple from blocking developers from including “buttons, external links, or other calls to action” that direct users to third-party payment options. It also barred the company from preventing developers from communicating with users through contact information obtained voluntarily.

In her latest ruling, Rogers ordered Apple to immediately stop collecting commissions on purchases made via those external links. Additionally, Apple must reimburse Epic Games for legal expenses tied to the contempt proceedings.

Apple Responds, Vows to Appeal

In a brief statement following the decision, Apple said:

“We strongly disagree with the decision. We will comply with the court’s order, and we will appeal.”

The company maintains that it has acted in good faith and that its policies are designed to protect user privacy and security.

https://usaherald.com/fortnite-game-maker-takes-on-google-epic-games-wants-open-play-store/

Epic Games Celebrates Legal Win

Epic Games CEO Tim Sweeney lauded the judge’s decision as a win for software developers across the globe.

“It’s a huge victory for developers,” he said on a conference call. “This forces Apple to compete. This is what we wanted all along.”

The long-running legal dispute began when Apple removed Fortnite from its App Store after Epic bypassed Apple’s 30% in-app purchase fee. While Apple prevailed on many antitrust claims, Epic’s success in challenging the commission structure and achieving this enforcement action is being hailed as a pivotal moment.

Read more: Apple reinstates Epic Games' App Store account in Europe after regulator scrutiny