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Federal Judge Accuses Apple of Defying Court Order, Refers Case for Criminal Investigation

by Harikrishnan A
May 4, 2025
in Business, Markets, News, Tech, Trending, World
Reading Time: 3 mins read
0
Apple vs. Epic Games: A Clash of Titans

(Photo by CHRIS DELMAS/AFP via Getty Images)

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Apple is in hot water once again — but this time, it’s not just about its App Store fees. A U.S. federal judge has accused the tech giant of blatantly ignoring a court order and misleading the court during a high-stakes legal battle with Fortnite creator Epic Games. Now, Apple may be facing something far more serious than a fine: a potential criminal investigation.

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The latest twist in the long-running legal feud between Epic Games and Apple arrived this week, when District Judge Yvonne Gonzalez Rogers issued a scathing ruling accusing Apple of deliberately undermining a 2021 court order. That injunction had required Apple to allow app developers to tell users about alternative payment options outside the App Store — a move intended to inject more competition into the tightly controlled Apple ecosystem.

Instead of playing by the rules, Judge Rogers says Apple found ways to sidestep the order — all to protect its lucrative revenue stream.


Apple Accused of Sabotaging the Spirit of the Law

Epic originally sued Apple in 2020, arguing that the iPhone maker’s 30% commission on App Store transactions was excessive and unfair. While Apple largely came out on top in the initial ruling, the court did side with Epic on one major point: Apple had to let developers inform customers about cheaper, third-party payment methods.

But three years later, Epic cried foul, alleging that Apple had failed to follow the court’s directive. Judge Rogers agreed — and didn’t hold back.

In her ruling, she accused Apple of twisting the injunction’s intent and continuing to act anti-competitively. “Apple’s response to the injunction strains credulity,” she wrote, adding that the company had “thwarted the injunction’s goals” and prioritized profits over lawful compliance.


Loopholes, Scare Tactics, and a New Fee

According to the court, Apple didn’t outright ban developers from linking to outside payment systems. Instead, it made the process so clunky and off-putting that most users would be discouraged from even trying.

Apple rolled out “scare screens” — full-page warnings that made third-party purchases seem risky. Developers were forced to use static URLs, and the language Apple required was vague and non-informative. On top of that, Apple introduced a new 27% fee for developers using external payment links, barely undercutting the original 30% rate.

Judge Rogers called these moves intentional barriers designed to sabotage competition. “The goal was to dissuade customer usage of alternative purchase opportunities and maintain [Apple’s] anti-competitive revenue stream,” she wrote.


Senior Executives Under Fire

What’s more troubling is the judge’s assertion that Apple leadership was fully aware of their actions. According to the ruling, Apple’s Vice President of Finance, Alex Roman, lied under oath in an attempt to conceal the company’s true intentions. Internally, Phil Schiller — one of Apple’s most senior executives — reportedly pushed for compliance with the court’s ruling. But his advice was ignored.

Instead, CEO Tim Cook sided with CFO Luca Maestri and the finance team, choosing a strategy that Judge Rogers believes was purposefully anti-competitive. “Cook chose poorly,” she stated.

With these damning findings, Judge Rogers referred the case to the U.S. Attorney’s Office in Northern California, urging federal prosecutors to explore whether Apple’s actions constitute criminal contempt of court.


Court Demands Immediate Compliance

Alongside the referral, Judge Rogers issued a new order demanding that Apple stop any actions that would interfere with developer-user communication. She also banned Apple from imposing new commissions on purchases made outside the App Store.

“This is an injunction, not a negotiation,” the judge emphasized. “There are no do-overs once a party willfully disregards a court order.”

Her message was clear: Apple must change course — now — or face severe consequences.


Epic Offers an Olive Branch

In a surprising move, Epic Games CEO Tim Sweeney responded to the ruling with a peace proposal. He announced that Fortnite would return to the iOS App Store in the U.S. the following week and said Epic would drop all current and future legal action if Apple applied the court’s payment framework globally.

“If Apple extends the court’s friction-free, Apple-tax-free framework worldwide, we’ll return Fortnite to the App Store worldwide,” Sweeney wrote on social media.

Whether Apple will accept the offer remains to be seen.

Tags: AppleApple vs EpicEpicEpic StoreUS
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Harikrishnan A

Aspiring writer. Enjoys gaming, fried chicken and iced tea, preferably all together.

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