In a significant legal development, Apple has been deemed to be in “willful violation” of a 2021 injunction by Judge Yvonne Gonzalez Rogers. This ruling, made on Wednesday, addresses Apple’s anticompetitive pricing practices, which had previously led to the removal of Epic Games’ popular title, Fortnite, from the iOS app store. The judge’s order leaves room for broader reforms to the way Apple runs its App Store. In doing so, it will rattle the cages of many a developer and consumer alike.
The 2021 injunction explicitly prohibited Apple from employing anticompetitive pricing. It barred the company from enforcing payment processing fees on transactions that occur outside its app ecosystem. Judge Gonzalez Rogers ruled that Apple did not live up to the spirit of that compromise. We break down what this decision could mean for the company’s future control over its app marketplace. This ruling may pave the way for Fortnite’s return to the U.S. iOS app store as early as next week.
Unsurprisingly, Epic Games’ CEO Tim Sweeney has used this time to reach out with Apple with an expanded offer. He then proceeded to announce that Epic Games was prepared to reintroduce Fortnite to the App Store globally. That can only occur if Apple accepts a friction-free, Apple-tax-free framework globally and drops all existing and future litigation on this matter.
“If Apple extends the court’s friction-free, Apple-tax-free framework worldwide, we’ll return Fortnite to the App Store worldwide and drop current and future litigation on the topic,” – Tim Sweeney
The case, focused mostly on Apple’s monopolistic control over the App Store, has been a big deal since it started. Judge Gonzalez Rogers has so far acted strongly by referring the issue to the U.S. attorney’s office. They should investigate the possibility of criminal contempt proceedings against Apple. Her comments further emphasized her frustration with the failure of Apple’s initiatives. She underscored that the company’s assumption the court would put up with this sort of nonsense was a “gross miscalculation.”
“That it thought this Court would tolerate such insubordination was a gross miscalculation. As always, the coverup made it worse. For this Court, there is no second bite at the apple,” – Judge Yvonne Gonzalez Rogers
The ugly legal war between Apple and Epic Games is escalating. This battle is sparking intense public discussion about app store monopolies and anti-competitive behavior in the tech ecosystem. We’ll see you at TechCrunch on June 5 in Berkeley, CA. As always, this competitive and disruptive event will create compelling conversations about the shifting forces on the industry.
The ramifications of this ruling reach far beyond the possible return of Fortnite. If implemented, these reforms would significantly reshape how Apple and other Big Tech monopolies operate their digital app stores. This raises new and fundamental questions about market equity, fairness and consumer choice.
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