April 30 (Reuters) - Apple ( AAPL ) violated a U.S.
court order that required the iPhone maker to allow greater
competition for app downloads and payment methods in its
lucrative App Store and will be referred to federal prosecutors,
a federal judge in California ruled on Wednesday.
U.S. District Judge Yvonne Gonzalez Rogers in Oakland said
in an 80-page ruling that Apple ( AAPL ) failed to comply with her prior
injunction order, which was imposed in an antitrust lawsuit
brought by "Fortnite" maker Epic Games.
"Apple's ( AAPL ) continued attempts to interfere with competition
will not be tolerated," Gonzalez Rogers said. She added: "This
is an injunction, not a negotiation. There are no do-overs once
a party willfully disregards a court order."
Gonzalez Rogers said she will refer Apple ( AAPL ) to federal
prosecutors for a criminal contempt investigation into its
conduct in the case.
Neither Apple ( AAPL ) nor Epic immediately responded to a request
for comment.
Epic accused Apple ( AAPL ) of stifling competition for app downloads
and overcharging commissions for in-app purchases.
Gonzalez Rogers in 2021 found Apple ( AAPL ) violated a California
competition law and ordered the company to allow developers more
freedom to direct app users to other payment options.
Apple ( AAPL ) failed last year to persuade the U.S. Supreme Court to
strike down the injunction.
Epic Games told the court in March 2024 that Apple ( AAPL ) was
"blatantly" violating the court's order, including by imposing a
new 27% fee on app developers when Apple ( AAPL ) customers complete an
app purchase outside the App Store. Apple ( AAPL ) charges developers a
30% commission fee for purchases within the App Store.
Apple ( AAPL ) also began displaying messages warning customers of
the potential danger of external links in order to deter
non-Apple ( AAPL ) payments, Epic Games alleged, calling Apple's ( AAPL ) new
system "commercially unusable."
Apple ( AAPL ) has denied any wrongdoing. The company in a court
filing on March 7 told Gonzalez Rogers that it undertook
"extensive efforts" to comply with the injunction "while
preserving the fundamental features of Apple's ( AAPL ) business model
and safeguarding consumers."
Gonzalez Rogers suggested at an earlier hearing that changes
made by Apple ( AAPL ) to its App Store had no purpose "other than to
stifle competition."