Federal Judge Orders Apple to Curb App Store Practices in Landmark Antitrust Case
A federal judge has mandated that Apple must alter its App Store policies and stop collecting commissions on certain app sales, marking a significant development in a five-year antitrust battle initiated by Epic Games. In a ruling issued on Wednesday, Judge Yvonne Gonzalez Rogers of the U.S. District Court for the Northern District of California criticized Apple for failing to comply with prior legal directives and accused CEO Tim Cook and other executives of dishonesty.
Judge Gonzalez Rogers previously ruled that Apple must allow app developers to link to external payment options, which could bypass the hefty 30% commission Apple typically charges. However, the judge found that Apple had implemented a new system that still siphoned off 27% of sales from external transactions, along with discouraging alternative payment methods through misleading pop-ups.
In her ruling, she stated, "Apple sought to maintain a revenue stream worth billions in direct defiance of this court’s injunction," and prohibited the company from enforcing rules that inhibit developers from directing users to alternative payment platforms. Furthermore, she has requested criminal contempt investigations into Apple’s practices.
This ruling represents a significant victory for Epic, creator of the popular game Fortnite, and may reshape the app economy, allowing developers to retain more revenue and offer better deals to consumers. Tim Sweeney, Epic’s CEO, celebrated the decision, highlighting the new opportunities for developers and consumers alike.
While Apple may appeal, the company’s stocks dipped 1.5% in after-hours trading following the announcement. The App Store accounts for a substantial portion of Apple’s nearly $100 billion annual services revenue, making the ruling a potential game changer in the digital marketplace.
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