US court eviscerates Apple’s malicious compliance, claims company lied under oath several times

Way back in 2021, in the Epic v. Apple court case, judge US District Judge Yvonne Gonzalez Rogers ordered Apple to allow third-party developers to tell users how to make payments inside iOS applications without going through Apple’s App Store. As we have come to expect from Apple, the company maliciously complied, lowering the commission on purchases outside of its ecosystem from 30% to 27%, while also adding a whole bunch of hoops and hurdles, like scare screens with doom-and-gloom language to, well, scare consumers into staying within Apple’s ecosystem for in-app payments.

Well, it turns out Judge Yvonne Gonzalez Rogers is furious, giving Apple, Tim Cook, and its other executives what can only be described as a beatdown – even highlighting how one of Apple’s executives, under orders from Tim Cook, lied under oath several times. Gonzalez is referring this to the District Attorney for Northern California “to investigate whether criminal contempt proceedings are appropriate.”

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. To hide the truth, Vice-President of Finance, Alex Roman, outright lied under oath. Internally, Phillip Schiller had advocated that Apple comply with the Injunction, but Tim Cook ignored Schiller and instead allowed Chief Financial Officer Luca Maestri and his finance team to convince him otherwise. Cook chose poorly. The real evidence, detailed herein, more than meets the clear and convincing standard to find a violation. The Court refers the matter to the United States Attorney for the Northern District of California to investigate whether criminal contempt proceedings are appropriate.
↫ US District Judge Judge Yvonne Gonzalez Rogers

Gonzalez’ entire ruling is scathing, seething with rage, and will probably do more reputational damage to Apple, Tim Cook, and his executive team than any bendgate or antennagate could ever do. Judge Gonzalez:

This is an injunction, not a negotiation. There are no do-overs once a party willfully disregards a court order. Time is of the essence. The Court will not tolerate further delays. As previously ordered, Apple will not impede competition. The Court enjoins Apple from implementing its new anticompetitive acts to avoid compliance with the Injunction. Effective immediately Apple will no longer impede developers’ ability to communicate with users nor will they levy or impose a new commission on off-app purchases.

[…]

Apple willfully chose not to comply with this Court’s Injunction. It did so with the express intent to create new anticompetitive barriers which would, by design and in effect, maintain a valued revenue stream; a revenue stream previously found to be anticompetitive. That it thought this Court would tolerate such insubordination was a gross miscalculation. As always, the cover-up made it worse. For this Court, there is no second bite at the apple.
↫ US District Judge Judge Yvonne Gonzalez Rogers

Gonzalez effectively destroyed any ability for Apple to charge commissions on purchases made inside iOS applications but outside Apple’s App Store, and this order will definitely find its way to the European Union as well, where it will serve as further evidence of Tim Cook’s and Apple’s continuous, never-ending contempt for the law and courts that uphold it. For its part, Apple has stated they’re going to appeal.

Good luck with that.