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Investing.com-- A U.S. federal judge ruled that Apple (NASDAQ:AAPL) violated a 2021 court injunction intended to spur competition within its App Store, potentially exposing the tech giant to criminal contempt proceedings.
The iPhone maker’s shares fell more than 1% in premarket trading Thursday.
U.S. District Judge Yvonne Gonzalez Rogers determined that Apple’s implementation of a 27% fee on external purchases and the display of warnings about third-party payment methods obstructed the court’s directive to permit developers to inform users about alternative payment options.
The injunction originated from Epic Games’ antitrust lawsuit, which accused Apple of monopolistic behavior by restricting third-party payment systems and imposing high in-app purchase commissions.
Judge Gonzalez Rogers referred Apple and its Vice President of Finance, Alex Roman, to federal prosecutors for potential criminal contempt, citing misleading testimony during the proceedings.
"The Court refers the matter to the United States Attorney for the Northern District of California to investigate whether criminal contempt proceedings are appropriate," Judge Rogers said in a court filing.
"This is an injunction, not a negotiation," she added.
Epic Games welcomed the judgment, with CEO Tim Sweeney announcing plans to reinstate Fortnite on the App Store.
The court’s order prohibits Apple from hindering developer-user communications and from imposing fees on off-app purchases, leaving the decision on criminal charges to federal prosecutors.
Ayushman Ojha contributed to this report.