A US judge has ordered Apple to immediately decrease its App Store fees, while asking criminal prosecutors to review the company’s alleged “cover-up.” In a 80-page decision, Judge Yvonne Gonzalez Rogers said Apple must allow app developers to direct customers to purchases outside the store. The judge accused the tech giant’s vice president of finance of lying under oath and referred the case to state criminal prosecutors.
The App Store generates an estimated $100 billion in annual revenue, with Apple earning fees on in-app purchases created by iOS app developers. The company has been accused of maintaining its anticompetitive revenue stream despite knowing its obligations. Judge Gonzalez Rogers described Apple’s actions as a “cover-up” and referred to the case as a betrayal by CEO Tim Cook.
The ruling raises new questions about the financial impact on Apple, which holds roughly 19% of the global smartphone market. As of February 2025, the store hosted roughly 2 million downloadable apps and earned nearly $92 billion globally in 2024. The judge’s decision is seen as a major victory for app developers at large.
The case dates back to August 2020 when Epic first challenged Apple with a lawsuit. Although the US Supreme Court declined to review the case in January 2024, the Ninth Circuit Court of Appeals upheld the injunction in April 2023. The judge’s decision is expected to have significant financial implications for Apple as it prepares to report second quarter earnings after the bell on Thursday.
Source: https://finance.yahoo.com/news/judge-says-ceo-tim-cook-chose-poorly-as-apple-ignored-app-store-order-174755382.html