A Minnesota federal court has found Apple Inc. and its executives in contempt of federal court order. This move coincides with the much-watched trial pitting Epic Games against Apple. The ruling, issued by Judge Yvonne Gonzalez Rogers, concluded that Apple willfully disregarded her previous orders and misrepresented its internal operations related to app payment systems.
In her ruling, Judge Rogers was unequivocal that off-app purchases not be subject to an Apple commission. After all, she had articulated this message most clearly during her confirmation process. As she further explained, where a party has intentionally violated a court order, there are no chances for a “do-over.” This statement underscores the seriousness of Apple’s actions and the implications for the tech giant’s business practices.
In his testimony, Rogers singled out Apple’s CEO Tim Cook by name. She zapped Cook for bad judgment, referencing his decisions on the entreprise’s adherence to her previous judgments. The judge noted that Apple’s trial presentation was evidence to the court. This evidence struck the jury as tailored even for litigation purposes. This evidence was an incomplete picture of what was really going on within the company’s high-level discussions and decision-making processes.
Judge Koh’s contempt ruling against Apple to underscore the gravity of the charges. The company is accused of having kept critical documents from a June 2023 meeting, at which conversations with Cook shifted around to avoiding being noncompliant with the 2021 court order. In taking a stand against Apple’s actions, Rogers said she was troubled that Apple’s behavior suggested a desire to flout her ruling in bad faith.
“I referred the matter to U.S. attorneys to investigate whether to pursue criminal contempt proceedings on both Roman and Apple,” Rogers stated, pointing to the potential legal ramifications for the company and its executives if further misconduct is confirmed.
In her statement, Rogers focused on the discrepancy between Apple’s testimony in court and business records already submitted. She stated, “In stark contrast to Apple’s initial in-court testimony, contemporaneous business documents reveal that Apple knew exactly what it was doing and at every turn chose the most anticompetitive option.” This acknowledgment adds weight to the court’s findings and raises questions about the integrity of Apple’s operations.
Alex Roman was singled out for special abuse in the ruling, as Rogers alleged that he committed perjury. She noted, “To hide the truth, Vice-President of Finance, Alex Roman, outright lied under oath.” Justifying such allegations would spell disaster for both Roman and the company as the fast-moving investigation continues.
The effects of this ruling will have far-reaching implications beyond Apple and Epic Games. Epic Games CEO Tim Sweeney previously hailed the decision as a major victory for developers. He stated, “It’s a huge victory for developers, and it means all developers can offer their own payment service side-by-side with Apple’s payment service.” If finalized, this development has the potential to upend the competitive playing field for app marketplaces and payment systems.