Apple slammed for App Store violations in Fortnite case
A US federal judge has found Apple in a wilful violation of a court order requiring it to ease restrictions on app developers, marking a major development in the long-running legal battle with Fortnite creator, Epic Games.
The ruling paves the way for the return of Fortnite to the iOS App Store in the US.
In an 80-page decision issued Wednesday, district judge Yvonne Gonzalez Rogers said Apple failed to comply with her 2021 injunction, which directed the tech giant to allow developers to link users to alternative payment options outside the App Store.
She said the tech giant’s actions amounted to “continued attempts to interfere with competition” and referred the company and its vice president of finance, Alex Roman, to federal prosecutors for potential criminal contempt.
“This is an injunction, not a negotiation”, Gonzalez Rogers wrote. “There are no do-overs once a party wilfully disregards a court order”.
‘Outright lies’
The judge accused the iPhone maker of misleading the court, stating that Roman’s testimony was “replete with misdirection and outright lies”, and that internal Apple documents contradicted claims made under oath.
The original injunction stemmed from Epic’s 2020 lawsuit against Apple, which accused it of monopolistic behaviour by charging a 30 per cent commission on in-app purchases.
In response to Epic introducing its own payment system within the game, Apple removed Fortnite from its App Store.
Gonzalez Rogers ruled in Epic’s favour in 2021, and ordered Apple to allow developers to steer users to other payment methods.
But Apple introduced a new 27 per cent commission on external purchases, discouraging users from leaving the App store – which Epic argued violated the spirit of the injunction.
On Wednesday, the judge sited with the Fortnite maker, barring Apple from charging any such fee.
“Apple cannot now be heard to complain that the consequences of its own calculated risk are too harsh”, she added.
Apple responded, saying it “strongly disagrees with the decision”, but will comply with the orrder.
Epic’s chief executive Tim Sweeney called the ruling a “huge victory” for app developers and consumers. He also confirmed his app’s return to the App Store next week.
“Developers can now pass along savings to customers through lower prices”, he said. “What this does is force Apple to compete, rather than block, competition”.
This forms part of a broader effort by the EU to enforce digital competition rules and ensure that major big techs, designated as ‘gatekeepers’, do not abuse their market positions.