Apple hits back at US judge's 'extraordinary' contempt order

Apple is asking an appeals court to pause a recent ruling. This ruling could impact the future of its App Store.

Judge Yvonne Gonzalez Rogers found that Apple violated her previous order. This order was made in a case filed by Epic Games, the maker of Fortnite.

In 2021, she ordered Apple to stop anti-competitive practices. She also required Apple to allow outside payment options in the App Store.

Last week, Judge Rogers determined that Apple ignored this demand. Apple called her finding "extraordinary."

The company claims her order unlawfully restricts its business operations. Apple's lawyers argued that a federal court cannot force it to give away access to its products and services.

Case Origins

Both of Judge Rogers' rulings come from an antitrust case by Epic Games. In 2020, Epic accused Apple of having an illegal monopoly with its App Store.

Apple collected commissions between 15% and 30% on in-app purchases. The judge rejected Epic's monopoly claims but found Apple violated California competition rules.

She ordered Apple to help developers offer cheaper payment options outside its ecosystem. Last year, Epic accused Apple of failing to comply by imposing new fees on developers instead.

In a contempt order last week, Judge Rogers found that Apple interfered with competition. Internal documents showed that Apple deliberately violated her 2021 injunction.

'Substantial Sums'

On Wednesday, Apple requested the appeals court take action. It wants to lift a ban preventing it from charging fees on purchases made outside the App Store.

Apple stated these restrictions would cost it "substantial sums annually." The company argued these restrictions are based on conduct not deemed unlawful.

They claimed the restrictions were imposed as punishment for alleged non-compliance with an invalid injunction.

In response, Epic Games said Judge Rogers' contempt order benefits consumers. They noted that competition has surged as developers improved payment methods and deals for users.

Epic criticized Apple's motion as a last-ditch effort against competition. They claimed it aims to extract excessive fees at consumers’ expense.

Epic is also working on bringing Fortnite back to iPhones and iPads. Apple removed Fortnite from its App Store in 2020 after Epic introduced an in-app payment system.

This move sparked the ongoing legal battle between the two companies.

Judge's Remarks

Apple did not directly address Judge Rogers' criticism of its executives in court filings. In her latest order, she noted CEO Tim Cook ignored advice from executive Phillip Schiller about compliance with her injunction.

She stated Cook allowed then-CFO Luca Maestri to convince him otherwise. "Cook chose poorly," she wrote about his decision-making process.

Judge Rogers indicated that internal documents showed Apple's awareness of their actions and choices regarding anti-competitive practices.

She plans to refer the matter to the US Attorney for Northern District of California for possible criminal contempt proceedings against Apple.

Last week, Apple stated it would comply with the court's order while appealing the decision.