Apple Faces Criminal Probe for App Store Defiance
A federal judge has referred Apple to the US Attorney's Office for potential criminal contempt proceedings. The referral stems from a finding that Apple willfully disregarded a court order aimed at loosening its App Store restrictions, deemed anticompetitive.
The Background
The issue originated from a 2021 lawsuit filed by Epic Games, challenging Apple's App Store policies, particularly the 30 percent commission on in-app purchases. While Apple prevailed on most counts, the judge mandated changes to allow developers alternative in-app purchase methods. Apple's subsequent actions, however, are at the heart of the current controversy.
Apple's Actions and the Court's Response
Apple lowered its commission to 27 percent for purchases outside its ecosystem but implemented several other changes, including "scare screens," designed to dissuade users from using alternative payment methods. The judge determined these actions constituted a deliberate attempt to circumvent the court order, maintaining anticompetitive practices and generating revenue streams previously deemed illegal. She further accused Apple executives of providing misleading testimony.
Specifically, the judge found Apple executive Alex Roman's testimony to be "replete with misdirection and outright lies." Internal Apple documents revealed that while some executives advocated compliance, CEO Tim Cook ultimately chose a path of non-compliance, influenced by the CFO and his finance team.
The judge's order demands immediate compliance, emphasizing that the original order is not subject to negotiation. The court is committed to preventing further delays and ensuring Apple does not impede competition. Apple has stated its intent to appeal the ruling while claiming it will comply with the court's order. The outcome of the US Attorney's Office investigation remains to be seen.
Source: Wired