U.S. District Judge Yvonne Gonzalez Rogers has ruled that Apple willfully violated a court injunction from Epic Games’ 2020 lawsuit, which aimed to increase competition in the App Store.
As a result, Apple has been found in civil contempt and is now barred from restricting third-party payment systems. The judge also referred the case to federal prosecutors for a possible criminal contempt investigation. Apple disputes the ruling and plans to appeal, Reuters news report said.
Apple App Store has generated $24.6 billion in revenues from global users during the second quarter of 2024, more than double the revenues Android users generated via the Google Play Store, according to media reports.
The Backstory: Epic vs. Apple
The dispute began in 2020 when Epic Games sued Apple, challenging the tech giant’s rigid control over app distribution and its infamous 30 percent commission on in-app purchases. In 2021, U.S. District Judge Yvonne Gonzalez Rogers issued an injunction requiring Apple to allow developers to steer users toward alternative payment options —essentially breaking Apple’s stranglehold on transaction revenue.
Apple introduced a new 27 percent fee for external transactions, barely different from the original commission, and deployed “scare screens” to dissuade users from opting for third-party payments. They were moves to preserve Apple’s multibillion-dollar revenue stream in clear violation of the court’s directive.
A Judge’s Rebuke — and a Possible Criminal Probe
Judge Gonzalez Rogers did not mince words. She held Apple in civil contempt and went a step further, referring the case to federal prosecutors for a potential criminal contempt investigation — a rare and serious escalation. The judge accused Apple of “insubordination” and stated unequivocally that internal records showed Apple knew exactly what it was doing.
To make matters worse, a senior Apple executive allegedly lied under oath, and the judge criticized Apple’s lawyers for failing to correct false testimony.
The Cost of Defiance
Apple’s refusal to comply has consequences. Beyond the possible criminal charges, it now owes Epic Games a substantial amount in legal fees — possibly tens of millions of dollars.
At the same time, Apple continues to pursue its own legal claims, seeking to recover over $73 million in fees from Epic — despite the court’s findings that Apple was the one out of line.
Baburajan Kizhakedath
