Apple Faces Criminal Contempt Probe Over App Store Compliance

A U.S. District Judge has referred Apple to federal prosecutors for possible criminal contempt, finding the company willfully violated a court order designed to foster competition in its App Store following a lawsuit by Epic Games. Judge Yvonne Gonzalez Rogers accused Apple and a finance executive of providing misleading testimony and intentionally creating new barriers to competition, including introducing a 27% fee on external purchases and obstructing developers from directing users to alternative payment methods. The court criticized Apple’s actions as attempts to preserve an anticompetitive revenue stream, emphasizing that the company’s cover-up aggravated the situation. As a result, Apple is now barred from imposing such fees or restricting developers from offering alternative payment options, and must comply with the injunction immediately. Apple disputes the ruling and plans to appeal, while Epic Games and other developers have hailed the decision as a win for market competition and consumer choice. The case marks a significant escalation in regulatory scrutiny over digital marketplace practices.