Introduction
A U.S. judge ruled that Apple violated a court order meant to open up competition in its App Store, and now the tech giant could face a criminal investigation. The judge says Apple didn’t play fair — and intentionally made it harder for developers to guide users to cheaper, alternative payment methods outside of Apple’s own system.
The ruling is a major win for Fortnite maker Epic Games, which has been battling Apple since 2020 over App Store policies it claims are anti-competitive and unfair to app developers.
Quick Overview
Court ruling: Apple found guilty of violating a previous court order related to App Store practices.
Criminal probe: A federal judge referred Apple to prosecutors for a potential criminal contempt investigation.
Epic Games’ win: CEO Tim Sweeney calls it a huge victory for developers and consumers.
Apple’s response: The company disagrees but says it will comply while appealing the decision.
What’s next?: Apple must immediately stop blocking links to alternative payments and can’t charge new fees on external purchases.
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The Backstory: Epic vs. Apple
This fight began nearly five years ago when Epic Games bypassed Apple’s in-app purchase system, letting players of Fortnite pay the company directly. That move broke Apple’s App Store rules — which mandate a 30% cut on all digital transactions. Apple quickly banned Fortnite, and Epic responded with a lawsuit.
In 2021, U.S. District Judge Yvonne Gonzalez Rogers ruled that Apple had indeed violated California competition law. She issued an injunction: Apple must allow developers to tell users about outside payment options.
But Apple didn’t fully follow the order.
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Apple Crossed the Line, Says the Judge
This week, Judge Gonzalez Rogers issued an 80-page ruling that strongly criticized Apple’s actions.
She said Apple tried to “interfere with competition” and did not comply with the court’s previous instructions. She noted the company’s “continued attempts” to avoid real change in how the App Store operates.
“This is an injunction, not a negotiation,” the judge wrote. “There are no do-overs once a party willfully disregards a court order.”
The judge didn’t stop there. She also referred Apple and one of its top executives — Alex Roman, Vice President of Finance — to federal prosecutors for a criminal contempt investigation. According to the judge, Roman misled the court and gave testimony filled with “misdirection and outright lies.”
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What Apple Did (and Didn’t Do)
Apple says it made changes to allow external payment options. But Epic Games argued those changes were superficial.
Here’s what Apple allegedly did wrong:
- It created a new 27% fee on purchases made outside the App Store — nearly as high as the original 30%.
- It placed warning messages to scare users away from clicking outside payment links.
- It continued to make it hard for developers to promote or link to their own payment systems.
Epic told the court that Apple’s so-called compliance made the system “commercially unusable.”
Apple pushed back. In a March 7 filing, the company said it made “extensive efforts” to follow the rules — while also trying to protect its business model and user safety.
But the judge didn’t buy it.
Epic Games: “A Win for Developers and Consumers”
Epic Games CEO Tim Sweeney celebrated the decision, calling it a turning point.
“This forces Apple to compete with other payment services rather than blocking them,” Sweeney said. “And this is what we wanted all along.”
He also revealed Epic plans to bring Fortnite back to the App Store next week — something Apple banned in 2020.
The decision is a rare but meaningful win for developers. Many smaller app creators have long felt squeezed by Apple’s high fees and tight control over app sales and updates.
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Apple Plans to Appeal
In a statement, Apple said it “strongly disagrees” with the ruling. The company promised to follow the court’s order — but also made it clear that an appeal is on the way.
Still, the judge warned Apple not to ask for a pause on enforcement. “Given the repeated delays and severity of the conduct,” she wrote, Apple cannot ask to stall her decision any longer.
From now on, Apple must:
- Stop discouraging users from clicking on alternative payment links.
- Let developers freely communicate with users about cheaper options.
- End the practice of charging a new 27% fee on off-App Store purchases.
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Why This Matters
This ruling comes at a time when tech giants are facing more legal scrutiny than ever. Governments in the U.S., Europe, and Asia are investigating platforms like Apple, Google, and Amazon for monopolistic behavior.
In Apple’s case, the App Store brings in tens of billions of dollars a year. Even small policy changes could have massive financial consequences. That’s why the company has resisted efforts to loosen its grip.
But regulators are pushing back — and this case could become a landmark for how digital marketplaces operate going forward.
What’s Next for Apple and the Industry?
The Department of Justice will now decide whether to bring criminal charges against Apple or any of its executives. While the judge didn’t say Apple must be prosecuted, she made it clear that the company should not be allowed to benefit from breaking the rules.
The case could also affect Google’s Play Store, which faces similar criticism over app fees and developer restrictions.
If Apple is forced to make permanent changes to the App Store, it may lead to lower costs and more options for millions of app users worldwide — not just in gaming, but in streaming, dating, fitness, and beyond.
Conclusion
Apple is now staring down one of its biggest legal threats in years — not just civil penalties, but a possible criminal case. The company is appealing, but the court’s message is clear: Big Tech can’t make its own rules anymore.
For developers and users, this could be the first real crack in Apple’s walled garden. The next few months could shape the future of the App Store — and the wider app economy — for years to come.
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