Apple Faces Criminal Charges for Allegedly Lying to a Federal Judge

A US district judge has found Apple in contempt of court for willfully violating an injunction related to a case brought by Epic Games. Judge Yvonne Gonzalez Rogers stated that Apple deliberately chose not to comply with the court order to loosen its App Store restrictions and that a top Apple executive, Alex Roman, "outright lied" under oath regarding the company's plans. The judge has referred the matter to the US Attorney’s Office in San Francisco to investigate potential criminal contempt proceedings.
The original 2021 lawsuit, filed by Epic Games, challenged Apple's anticompetitive practices, specifically the 30 percent commission on in-app purchases and restrictions on developers' ability to inform users of alternative payment options outside the App Store. While Judge Gonzalez Rogers initially ruled in favor of Apple on most counts, she issued an injunction requiring Apple to allow developers to market alternative payment methods. Apple responded by lowering its commission to 27 percent for external purchases but introduced measures, such as "scare screens," to discourage users from using these alternatives.
In a recent ruling, Judge Gonzalez Rogers found that Apple’s actions were designed to maintain a revenue stream previously deemed anticompetitive, accusing Apple executives of trying to conceal their true motivations. She highlighted internal documents revealing that Apple was fully aware of its actions and consistently chose the most anticompetitive option. The judge specifically accused Alex Roman, Apple’s vice president of finance, of providing misleading testimony about the decision-making process behind the 27 percent commission on external purchases.
Apple spokesperson Olivia Dalton stated that the company strongly disagrees with the decision, will comply with the court’s order, and intends to appeal. However, Judge Gonzalez Rogers emphasized the urgency of compliance, stating, "This is an injunction, not a negotiation," and demanding immediate adherence to the original order. She criticized Apple’s insubordination and warned against further delays, asserting that Apple will not impede competition.
Epic Games CEO Tim Sweeney welcomed the ruling, suggesting it would end Apple's "15-30% junk fees." He proposed a "peace proposal" where Fortnite would return to the App Store worldwide, and Epic would drop current and future litigation if Apple extended the court's ruling globally, offering a commission-free framework worldwide.
Judge Gonzalez Rogers cited internal Apple documents indicating that App Store chief Phillip Schiller had advocated for compliance with the injunction, but CEO Tim Cook, influenced by CFO Luca Maestri and his finance team, chose to disregard Schiller’s advice. The judge emphasized that Apple’s actions undermined the goals of the injunction and continued its anticompetitive conduct to maintain its revenue stream. She explicitly stated that the lies and misrepresentations presented by Apple and its counsel would be held against them.
Jay Peters from The Verge highlighted Judge Gonzalez Rogers’ statement that Alex Roman’s testimony was "replete with misdirection and outright lies." The judge noted that Roman falsely claimed the 27 percent commission was not decided until January 16th, 2024, while documents showed the plan, including the commission, was determined in July 2023.