In a significant development in the ongoing legal battle between Apple and Epic Games, U.S. District Judge Yvonne Gonzalez Rogers has referred Apple and its Vice President of Finance, Alex Roman, to federal prosecutors for potential criminal contempt charges.
This action follows revelations that Roman provided false testimony under oath regarding the implementation of a 27% commission fee on external App Store purchases.
False Testimony and Legal Repercussions
The controversy centers on Roman’s claim that the decision to impose the 27% commission was made in January 2024. However, internal documents indicate that the plan was finalized by July 2023. Judge Gonzalez Rogers criticized both Roman and Apple’s legal team for failing to correct the misleading testimony, stating that their actions amounted to adopting the falsehoods presented in court.
Citing the 80-page order, the judge ruled:
Apple employees attempted to mislead the Court by testifying that the decision to impose a commission was grounded in AG’s report. The testimony of Mr. Roman, Vice President of Finance, was replete with misdirection and outright lies. He even went so far as to testify that Apple did not look at comparables to estimate the costs of alternative payment solutions that developers would need to procure to facilitate linked-out purchases.
Implications for Apple’s Leadership
The judge’s ruling also highlighted internal disagreements within Apple’s leadership. While App Store chief Phillip Schiller advocated for compliance with the court’s injunction, CEO Tim Cook sided with CFO Luca Maestri’s team, which supported the 27% commission strategy. This decision has now led to increased legal scrutiny and potential criminal charges against the company and its executives.
Epic Games’ Response and Industry Impact
Epic Games, the plaintiff in the original antitrust lawsuit, has welcomed the court’s actions. The company’s CEO, Tim Sweeney, announced plans to relist Fortnite on the U.S. App Store, signaling a significant shift in the ongoing dispute. This development may also influence broader industry practices regarding app store commissions and developer rights.
Looking Ahead
As Apple faces potential criminal contempt charges, the tech industry watches closely. The outcome of this case could set a precedent for how major technology companies navigate legal obligations and regulatory compliance in the digital marketplace.
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