Judge Slams Apple Over App Store Tactics, Shares Slip Ahead of Earnings

Judge: Apple Violated Court Order

A federal judge ruled that Apple Inc. defied a 2021 court order requiring it to loosen control over in-app payments on its App Store.U.S. District Judge Yvonne Gonzalez Rogers found Apple in civil contempt and referred the case to prosecutors for a potential criminal investigation. She said, Alex Roman, Apple’s vice president of finance may have lied under oath.

The Original Ruling in 2021

In 2021, Gonzalez Rogers mostly ruled in Apple’s favor in its fight with Epic Games, saying its App Store didn’t violate federal antitrust law. But she ordered Apple to allow developers to steer users to external payment systems—bypassing the company’s up-to-30% commission. The order was upheld last year when the U.S. Supreme Court declined to hear Apple’s appeal.

Appstore Photo by James Yarema on Unsplash

Apple’s 27% Workaround Backfires

Following the 2021 court ruling, Apple allowed developers to link to external payment sites—but imposed a 27% fee on those transactions. Gonzalez Rogers called the move an attempt to “circumvent” court's order and said Apple tried to conceal what it was doing. The judge’s new ruling blocks Apple from collecting fees on payments made outside its App Store.

Epic Claims a Win for Developers

Epic Games CEO Tim Sweeney called the decision a “huge victory for developers.” He said it forces Apple to compete on payment services rather than blocking rivals outright. Epic has long argued that Apple’s rules are monopolistic and harmful to smaller developers.

Apple’s Business Model at Risk

The decision threatens a key revenue stream. Apple’s App Store generates tens of billions each year. Now, the company may have to give up commissions on purchases it doesn’t process. It’s also facing pressure in a separate antitrust case over its default search deal with Google.

Apple shares are down 1% in premarket trading ahead of its quarterly earnings report due after the market close.