Apple Could Face Criminal Allegations for Misleading a Federal Court

A US federal judge has accused Apple of intentionally refusing to adhere to a legal mandate, which required the company to ease restrictions on its App Store. Additionally, a senior Apple official is alleged to have provided false testimony regarding the company's intentions.

Judge Yvonne Gonzalez Rogers has escalated the matter to the US attorney's office in San Francisco, urging them to evaluate if there are grounds for initiating criminal contempt charges.

Apple has not issued any comments in response to these claims.

The legal conflict traces back to a 2021 case involving Epic Games, the creator of Fortnite, who sued Apple over its App Store policies believed to limit developers' potential earnings. Central to the dispute were Apple's practices, including its policy of deducting a 30 percent fee on specific in-app transactions.

Although the judge ruled predominantly in Apple's favor, she ordered Apple to allow developers to promote alternative methods for in-app purchases outside its Store. Apple reacted by marginally reducing the cut to 27 percent but also implemented deterrent measures aimed at dissuading users from making purchases outside the App Store.

Epic Games later contested Apple's compliance with the court's directive, prompting the judge to request further documentation from Apple. This led to the current contempt finding against the company.

In her decision, Gonzalez Rogers criticized Apple's tactics, claiming that the company strategically pursued actions to establish new competitive barriers, intending to protect a revenue stream previously deemed anti-competitive. She deemed Apple's assumption of the court tolerating such a stance a grave error.

The judge highlighted a discrepancy between Apple's courtroom statements and its internal communications, suggesting the company was fully aware of its actions. She specifically accused Alex Roman, Apple's finance VP, of providing misleading testimony about the rationale behind Apple's 27 percent commission decision.

Alex Roman has yet to comment on these accusations.

Judge Gonzalez Rogers also referenced a 2023 internal Apple document that revealed Phillip Schiller, the head of the App Store, was in favor of adhering to the court's orders. Nonetheless, CEO Tim Cook reportedly dismissed Schiller’s stance, taking advice from CFO Luca Maestri and his team instead.

The judge reiterated her demand for Apple to comply without delay, emphasizing that judicial orders are not subject to negotiation. She warned against additional procrastination, reinforcing the court's determination that Apple must not disrupt competition as previously commanded.

Tim Sweeney, CEO of Epic Games, expressed on the social platform X that he anticipates the new ruling will ultimately eliminate what he referred to as Apple's excessive fees ranging from 15% to 30%.