{"id":24485,"date":"2025-05-09T14:08:23","date_gmt":"2025-05-09T14:08:23","guid":{"rendered":"https:\/\/site.itshrt.com\/worldnews\/how-apple-created-a-legal-mess-when-it-skirted-judges-ruling\/"},"modified":"2025-05-09T14:08:23","modified_gmt":"2025-05-09T14:08:23","slug":"how-apple-created-a-legal-mess-when-it-skirted-judges-ruling","status":"publish","type":"post","link":"https:\/\/site.itshrt.com\/worldnews\/how-apple-created-a-legal-mess-when-it-skirted-judges-ruling\/","title":{"rendered":"How Apple Created a Legal Mess When It Skirted Judge\u2019s Ruling"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<\/p>\n<div data-testid=\"companionColumn-0\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Several weeks after a federal appeals court said Apple would have to loosen its grip on its App Store, Tim Cook, the company\u2019s chief executive, and his top lieutenants debated what to do.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">For more than a decade, Apple had required apps to use the App Store payment system and collected a 30 percent commission on app sales. Now, in 2023, the courts were ordering it to allow apps to avoid Apple\u2019s payments and go directly to online consumers. Mr. Cook wanted to know: Could Apple still charge a commission on those sales without violating a court order?<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Phil Schiller, who oversaw the App Store, worried that new fees could be illegal. He favored making online sales free of an Apple commission. Luca Maestri, who oversaw the company\u2019s finances, disagreed. He favored charging a commission of 27 percent for online sales because it would protect the company\u2019s business.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Mr. Cook sided with Mr. Maestri, and Apple set out to justify that choice. It \u201cmanufactured\u201d an independent economic study to legitimize its decision, a federal judge said in an angry ruling last week. It withheld thousands of documents under attorney-client privilege claims. And at least one of its executives lied on the witness stand.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-1\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">The judge\u2019s ruling, as well as witness testimony this year and company documents released on Thursday, shows the extraordinary measures that Apple took to keep every penny it collected in the App Store. The decision by Judge Yvonne Gonzalez Rogers, who heard the initial lawsuit brought by the video game company Epic Games in 2020, could cast a shadow over Apple\u2019s business for years, weakening its credibility as legal scrutiny of its operations intensifies.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The company is also trying to fend off a half dozen other legal challenges, including <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/03\/21\/technology\/apple-doj-lawsuit-antitrust.html\" title=\"\">a Justice Department antitrust lawsuit<\/a> accusing it of maintaining an iPhone monopoly, <a class=\"css-yywogo\" href=\"https:\/\/www.reuters.com\/legal\/litigation\/apple-hit-with-app-developer-class-action-after-us-judges-contempt-ruling-2025-05-05\/\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">class action lawsuits<\/a> from app developers in the United States and anticompetitive investigations of its App Store by the <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/04\/23\/technology\/apple-meta-eu-fines-competition-law.html\" title=\"\">European Union<\/a>, <a class=\"css-yywogo\" href=\"https:\/\/www.cnbc.com\/2025\/01\/23\/apple-and-google-hit-with-uk-antitrust-probe-into-mobile-ecosystems.html\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">Britain<\/a>, <a class=\"css-yywogo\" href=\"https:\/\/www.reuters.com\/sustainability\/spains-antitrust-watchdog-opens-investigation-into-apples-app-store-2024-07-24\/\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">Spain<\/a> and potentially <a class=\"css-yywogo\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-02-05\/china-weighs-investigating-apple-over-app-store-policies-fees-including-30-cut\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">China<\/a>.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cIf you burn your credibility with the courts, the next judge is going to be a lot less willing to forgive,\u201d said Mark A. Lemley, a Stanford University professor of antitrust and technology law. In future cases for Apple, he said, \u201cit\u2019s going to be easier for a judge to jump to the conclusion that people are lying.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Google has shown that a company\u2019s actions can cast a shadow over high-stakes legal proceedings. Last month, in an antitrust case <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/04\/17\/technology\/google-ad-tech-antitrust-ruling.html\" title=\"\">over its advertising technology<\/a>, a judge said the company\u2019s efforts to conceal its communications had raised questions about whether it would follow the court\u2019s remedies for its behavior.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Apple is appealing Judge Gonzalez Rogers\u2019s ruling, which held the company in civil contempt. In requesting a delay of the court\u2019s order to loosen its grip on the App Store, Apple said on Wednesday that it would show the contempt finding was \u201cunwarranted.\u201d The company declined to comment further for this article.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-2\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Epic, the developer of Fortnite, <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2020\/08\/13\/technology\/apple-fortnite-ban.html\" title=\"\">sued Apple<\/a> in 2020, accusing it of violating antitrust laws by forcing developers to use its App Store payment system. Judge Gonzalez Rogers ruled largely in favor of Apple, finding it wasn\u2019t a monopoly, as Epic had argued. But <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2021\/09\/10\/technology\/epic-apple-app-developers.html\" title=\"\">she said Apple had violated California competition law<\/a> and ordered the company to allow apps to include links and buttons to buy software and services outside the App Store.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Apple created a task force, code-named Project Wisconsin, to respond to the order. It considered two different solutions. The first would allow apps to include links for online purchases in restricted locations, free of a commission. The second would allow apps to offer those links where they wished but force them to pay a 27 percent commission on sales.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">With links and no commission, Apple estimated it could lose hundreds of millions of dollars, even more than $1 billion. With a 27 percent commission, it would lose almost nothing.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Mr. Cook met with the team in June 2023. He reviewed a range of commission options, from 20 to 27 percent. He also evaluated analysis showing that few developers would leave Apple\u2019s payment system for their own if there was a 27 percent commission, court records show. Eventually, he chose that rate while also approving a plan to restrict where apps put links for online purchases.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Afterward, Apple hired an economic consultant, Analysis Group, to write a report that Apple could use to justify its fees. The report concluded that Apple\u2019s developer tools and distribution services were worth more than 30 percent of an app\u2019s revenue.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-3\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Apple also created screens to discourage online purchases by making them seem scary and \u201cdangerous,\u201d court documents show. Mr. Cook weighed in, asking the team to revise a warning to emphasize Apple\u2019s privacy and security. Rather than \u201cYou will no longer be transacting with Apple,\u201d the company said: \u201cApple is not responsible for the privacy or security of purchases made on the web.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">When Apple revealed its 27 percent commission in January 2024, Epic filed a claim in court that Apple wasn\u2019t complying with the judge\u2019s order. Judge Gonzalez Rogers brought Apple and Epic back to court. Alex Roman, a vice president of finance, testified that Apple had made its final decision on its commission on Jan. 16, 2024. Executives also testified that the Analysis Group report had helped them set the commission rate.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Judge Gonzalez Rogers questioned whether Apple was telling the truth and asked the company to provide documents about its plans. It produced 89,000 documents but claimed a third of them were confidential. The court said those claims were \u201cunsubstantiated\u201d and forced Apple to turn over more than half of the documents.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The documents made clear that Mr. Roman had lied under oath, that the Analysis Group report was a \u201csham\u201d and that Apple had \u201cwillfully\u201d disregarded a court order, Judge Gonzalez Rogers said. She called it a \u201ccover-up.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Her ruling will give prosecutors, regulators and judges ammunition against Apple\u2019s defense strategies in a half dozen similar cases around the world, several antitrust and tech law professors and lawyers said.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-4\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">When the company tries to redact or withhold documents, prosecutors and judges can point to how those strategies were found to be \u201ctactics to delay the proceedings\u201d in the Epic Games case, these experts said. When Apple executives testify, prosecutors and judges could question their credibility because the company was found to \u201chide the truth\u201d and \u201coutright lie.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">In the Justice Department\u2019s antitrust case and others against Apple, said Colin Kass, an antitrust lawyer at Proskauer Rose, courts and regulators seeking Apple documents \u201cwill start the process by saying, \u2018Open your doors, and don\u2019t you dare try those silly little games you used in the past.\u2019\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The company will face more skepticism about defenses, as well, in the Justice Department\u2019s lawsuit, said Rebecca Haw Allensworth, a law professor at Vanderbilt University who studies antitrust. In the past, Apple has said it shows green bubbles for an Android owner\u2019s messages because communicating across smartphone systems is less secure. But she said those claims might be considered less credible after the Epic ruling.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Ms. Allensworth said the judge\u2019s opinion also could stiffen the resolve of the European Union, Britain, Spain and others pressing Apple to change its App Store practices because regulators and courts often find safety in numbers.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cApple has been acting like they\u2019re above the law,\u201d she said. \u201cThis sends a signal Apple is not.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.nytimes.com\/2025\/05\/09\/technology\/apple-app-store-antitrust.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Several weeks after a federal appeals court said Apple would have to loosen its grip on its App Store, Tim<\/p>\n","protected":false},"author":1,"featured_media":24486,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[1216,1076,513,123,482,154,1407,6635,135,6636,124,134,193,1081,6637],"class_list":["post-24485","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-antitrust-laws-and-competition-issues","tag-apple-inc","tag-computer-and-video-games","tag-computers-and-the-internet","tag-cook","tag-decisions-and-verdicts","tag-e-commerce","tag-epic-games","tag-fees-and-rates","tag-gonzalez-rogers","tag-mobile-applications","tag-prices-fares","tag-suits-and-litigation-civil","tag-timothy-d","tag-yvonne-1965"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Apple Created a Legal Mess When It Skirted Judge\u2019s Ruling - World News<\/title>\n<meta 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