Apple Violated Antitrust Ruling, Judge Finds
172 comments
·May 1, 2025mil22
autobodie
About time for what? Another company to get charged with something that they don't get punished for?
The fines are always less than the companies' net gains from the practice. Gains are often indirect, risk-related, and/or part of a larger strategy, so they cannot be calculated.
Everything short of prison is a waste of time, waste of tax dollars, and spits in the face of decent citizens.
Nevermark
I like the idea of civil judgements that require responsible individuals to remove themselves from the company. And void any forward looking renumeration in their contracts.
Personal fines too, such as returning past remunerations during the problematic time in question. Salaries. Stock grants.
There is no such thing as an incentive, that doesn't incentivize someone. Relatively small fines relative to revenues and profits don't incentivize anything.
Alternatively, if fines really were big enough to turn large companies around (i.e. not just the enforced, but other companies seeing the enforcement), heads would roll, but would they be the right ones given those in charge are unlikely to fire themselves? And shareholders are the ones really paying the fines, are they really the culprits?
The incentives to act in good faith, should be placed very directly on the individuals whose choices dictate the good/bad faith. Starting and staying largely with the CEO, and the direct line of reports from the CEO down to the relevent decisions.
You don't want anyone who mattered to have cover. You want CEO's policing their own, and their reports pushing back upward against poor directives.
The only cover for relevent actors would be a record of pushing back against those who pushed through poor behavior.
TLDR: Limited liability should protect non-managing shareholders, but not bad actors within a company. Decisions makers should always be held directly responsible for their decisions. Any other system is perverse.
schmidtleonard
> There is no such thing as an incentive, that doesn't incentivize someone.
It's wild how the public discourse on incentives is so split. On one hand, the poor are guilty until proven innocent of six dimensional chess to eek "unearned" pennies from social programs, yet the very idea that mega billionaires might pull easy, obvious levers for unethical mega million payouts is one that must beg and scrape for consideration.
Terr_
> I like the idea of civil judgements that require responsible individuals to remove themselves from the company.
As long as their job isn't to P.L.E.A.S.E.
echelon
100%. This doesn't deserve a fine. This deserves Apple to be given an ultimatum about their mob boss behavior with mobile.
Apple and Google quickly built up their duopoly such that everyone doing anything with mobile phones has to pay them a tax. You can't even deploy your own apps at your own cadence, without strict review, using your own technology. You have to jump through unplanned upgrade cycles, you're forced to use their payment rails and signup flows (and don't get to know your customer or get them to use your website). You pay the taxes on everything. And even then, they let your competitors advertise against your name or trademark.
This is rotten to the core.
Neither Google nor Apple should have an app store. Apps should be web installs. The only reason things work the way they do is so that Apple and Google can tax and exert control. A permissions system, signature scans, and heuristics are all that are needed to keep web installs safe - and all of those pieces are already in place. There's no technical or safety limitation, Apple and Google just want to dominate.
These two companies were innovative 20 years ago, but their lead then doesn't entitle them to keep owning the majority of most people's computing surface area for the rest of time. They have to give up the reigns. There are still billions of dollars for them to make on mobile, even if regulators tell them to stop treating developers as serfs and locking them in cages.
No. More. App. Stores.
Regulate big tech's hold over mobile, web, search, and advertising.
snowwrestler
I understand people like this ruling and want Apple and Google to open up. But this is just silly rewriting of history:
> Apple and Google quickly built up their duopoly such that everyone doing anything with mobile phones has to pay them a tax.
Long before Apple and Google made phones, a huge mobile device ecosystem already existed, including app stores, and it was way more locked down and expensive than what we have now.
The iPhone did not even launch with an app store, its launch concept was 100% web apps. They only added the native SDK and app store after developers and customers demanded it.
Again: I know the world is different now. But the idea that this was all some swift inexorable coup by Apple and Google is totally inaccurate. Plenty of other companies had a chance to do things differently, many with huge head starts.
ulrikrasmussen
It's also insane how what was considered dystopia for desktop computing silently happened for mobile devices: a corporation controlling the software stack and using cryptography against the users to control precisely what software they are allowed to run on their "own" devices. Yes, in principle Android phones can be rooted, but in practice this breaks Play Integrity and you are now locked out from a huge range of apps.
Google and Apple have silently achieved Microsoft's wet dream from the "trusted platform" era of effectively making it impossible for free and open source operating systems to compete with their own.
tgsovlerkhgsel
It does deserve a fine and/or criminal forfeiture of the revenue they made from the app store monopoly. If Apple had to repay let's say the difference between what they charged and what a reasonable fee would be (let's say 10%), for the entire time they've been doing it, that would put "a bit" of a dent into their pocketbook and serve as an effective deterrent.
leptons
I'm fine with Google and Apple having App stores, so long as I'm not forced to use them. They should compete like everyone else. The walls of the walled garden have to be torn down. They still get to have a garden, they just can't lock unwitting people inside of it.
lwo32k
Its not possible for them to make "billions of dollars" any other way - https://en.wikipedia.org/wiki/Platform_economy
musicale
> To hide the truth, Vice-President of Finance, Alex Roman, outright lied under oath
Well that sounds rather damning.
zik
Surely he should receive a prison sentence for that alone?
numbsafari
With the referral to the US attorney’s office, he actually might.
Consider how painful that is going to be for Apple, and Roman, with how the current administration is abusing the DOJ.
The repercussions of this could be huge.
stingraycharles
Happens more than you’d think. Happened to me in the past as well in some business conflict. It was baffling how people can just lie in court under oath and get away with it.
somenameforme
The asterisk is that the government has to be able to prove knowledge and intent to lie, and prove that beyond a reasonable doubt. It makes it really hard to successfully charge anybody with perjury.
Muromec
Criminal contempt would the charge against the company or the people named above? How does it work in this case?
mil22
"Accordingly ... the Court refers the issue to the United States Attorney for the Northern District of California ... for investigation against Apple and Alex Roman, Apple’s Vice President of Finance specifically."
propagandist
Read Taibbi's book, The Divide. No prison time is the most likely outcome unless the justice system has changed between then and now.
zelphirkalt
And what happens now to those who lied under oath? Can we get those people properly punished and send some signals? Or are they above the law somehow?
spencerflem
The USA is an oligarchy
stillatit
So what is the punishment for outright lying under oath?
90s_dev
Generally none, the DA must choose to pursue perjury charges, which basically never happens. In reality, nearly everyone commits perjury. Thomas More would not approve. Both versions (1966 and 1988) of A Man For All Seasons are highly worth watching several times and practically memorizing. "Would you benefit England by populating her with liars?" [edit] in retrospect, there is one inescapable consequence of lying under oath: your word now means nothing to honest people.
ryandrake
I bet if a poor person struggling to hold down three jobs to survive were found to be lying under oath, the DA would throw the book at them.
Jcampuzano2
To be honest companies practically incentivize having no moral compass and lying to succeed. Every major company's executives incorporate lying judiciously to their employees and their users alike and encourage their reports to lie to theirs and so on. Adhering to complete honesty is a one way ticket to HR.
Sit on any all-hands call for a major company and it is practically guaranteed large chunks of the presentation will be executive gaslighting of its own employees with info that is objectively false or a misrepresentation. You will also never get a real answer to actual hard questions (especially if it is on the topic of something that may negatively affect workers) which is essentially lying by omission.
It doesn't help that we have now proven that you can lie all the way to the seat of being president of the united states.
That said - whether we like it or not, we are now a culture built on lying.
usefulcat
I've not seen the one from 1988; I'll have to check that out. I've long enjoyed the one from '66.
I also heartily recommend both seasons of Wolf Hall. About Cromwell rather than More, but still fascinating.
dfedbeef
Oh no, my word means nothing to honest people.
Boards private jet to Monaco
labster
There are so few honest Americans that it hardly matters to serve such a small demographic.
andrewmcwatters
Clearly nothing, since we've decided to be a nation that doesn't enforce laws.
georgemcbay
in 2025? Tim Apple has to call Trump and be very nice to him, maybe cut a check to fund the presidential library.
platevoltage
I mean, that contribution to his inauguration fund is what probably got them that tariff exemption.
to11mtm
> 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.
Here's the fun question though. Do Roman, Maestri et al not have any specific damages to this? (I know the answer, but it's a good question to ask....)
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mrcwinn
The heart of Apple's hypocrisy is this: they claim their 30% is necessary to support the developer ecosystem and fund its operations. But of course if that were true, they could easily charge a high enough platform membership fee directly to developers. Instead they opt for a structural tax to cover what are mostly completely opaque and secret operational costs. They're opaque and secret for obvious reasons: those expenses come nowhere close to the ~$30 billion in App Store commission Apple generates every year.
elpool2
As described in the ruling, Apple hired a consulting group to estimate how much value developers get from the iphone platform, which found that
(1) Apple’s platform technology is worth up to 30% of a developer’s revenue. (2) Apple’s developer tools and services are worth approximately 3%–16%. (3) Apple’s distribution services are worth approximately 4%–14%. (4) Apple’s discovery services are worth approximately 5%–14%.
Then Apple claimed this study was how they came up with the 27%, but the Judge basically said nah you guys came up with that number before the study, and you even know it would be a non-starter for almost all developers.
paxys
Hire a consulting firm to tell you exactly what you want to hear, then say "see the experts said it, not us". Classic.
marcus_holmes
The first thing the consulting group would have asked Apple was "what do you want this number to be?".
That's the point of hiring consulting groups.
jamessinghal
The funny thing is that the companies that stand to benefit the most from this and that move the most money (Netflix, Spotify, Fortnite) need Apple's platform, marketing, and distribution the least.
realusername
It made me laugh, if you pretend to be worth 30% of revenue (an insane markup), you better really invest in those developer tools to show it off because the sad state of xcode really isn't showing that.
I don't know where this money is going but certainly not in the developer tooling because it's absolutely terrible
ethbr1
If Apple were worth 30% of revenue, then they'd have no problem allowing competing app stores on their devices, because they support their rate with their value.
The fact that they're deadset against competition should tell the courts all they need to know about how competitively supportable the 30% is.
Scaevolus
Steam takes a 30% cut, but it's actually apparently worth it for discovery and low-friction sales alone, since developers still sell on Steam when the PC is an open platform with competing storefronts with lower cuts.
DaiPlusPlus
> if you pretend to be worth 30% of revenue (an insane markup)
Back in 2008, if you were an indie dev then their 30% ask was more than reasonable because the cost-of-doing-business on other platforms (like Windows Mobile) was much higher due to the lack of any central App Store; for example, you'd often need to partner with a company like Digital River, and pay more for marketing/advertising and overcome the significant friction involved in convincing punters to register/buy from your website, download the app *.cab files to their PC, install the app onto your device, and hope no-one uploads a copy to a filesharing network because this was before the days when an OS itself would employ DRM to enforce a license for third-party software.
...then one day Apple comes along and says: "We can manage all of that for you, for far less than what you'd pay for e-commerce and digital distribution, and our customers have lots of disposable income".
Ostensibly, competition should have come from the Android and (lol) Windows App Stores: "surely if Android's Play Store offers devs better rates then devs will simply not target iOS anymore and Apple will reduce their % to stay competitive" - but Apple's secret-sauce of a markedly more affluent customer base with already saved credit-card details meant that Android apps leant more on ad-supported apps while more iOS apps could charge an up-front amount, not have ads, and result in iOS devs still making far more money on Apple's platform.
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There exists an argument that Apple should not be forced to open-up the iOS platform because Apple is selling a closed platform on the merits of it being a closed platform, and Apple's customers want a closed platform (even if they don't realize it) because having a closed platform looks like the only way to enforce a minimum standard of quality and to keep malware out precisely because normal-human-users (i.e. our collective mothers) will install malware because the installation instructions for "Facebook_Gold_App1_100%_Real_honest.app" tell them to disable system protections.
to11mtm
This is obscene lmao.
if you take the high end for all of these points, Apple is claiming 74% of the revenue is thanks to them.
Also, there's a certain level of 'hand-waving' here where if you're developing for iOS you're almost forced to have Apple hardware in the first place to run+test (hell, even Android can be dev'd from almost anything...)
bigyabai
You don't pay consulting agencies to put you in legal jeopardy. The judge is right.
Spooky23
They don’t make that claim. That’s the service they are selling and the margin they choose. The royalty is similar to software retailer margins going back a long time. Steam charges a similar rate.
It’s pretty trivial to bypass. Just don’t charge for your software, and use the app to access paid resources purchased outside the platform. My company distributes a few dozen apps to thousands of employees, Apple gets $0, because they utilize an existing subscription or license unconnected to Apple.
gausswho
Isn't the point of this case that even free apps can't even advertise their direct payment systems?
ivanmontillam
Were they transparent, what would inhibit developers from bargaining against the costs and benefits shown? Sometimes that also outweighs the benefits of transparency.
You just can't show anything to anyone without kicking a wasp's nest.
I am not defending Apple, if anything, I am pro-Android here, but I understand the pickle they'd be in, were they be transparent with the cost structure.
cyberax
Well, yeah. It would have shown that their commissions are nothing but rent-seeking.
ivanmontillam
Exactly my point!
This would kick the wasp's nest of "they (Apple) don't need this much money to operate, they can do well with 10% profit!"
Which is very hard to admit, that profit margins are arbitrary when you, indeed, dominate the market.
Apple doesn't want (nor need) to give anyone a handle to anyone to make them accountable. It is not a charity.
(Again, I'm not defending Apple, but I do defend corporate liberties, in general.)
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mvdtnz
> what would inhibit developers from bargaining against the costs and benefits shown?
Another word for that is "competing". And yeah, exactly.
mystified5016
It isn't about transparency.
It is about illegal anticompetitive behavior.
Apple didn't charge tax on all app store purchases to protect themselves, it was done out of greed and malice.
You're assuming that Apple is acting in good faith. An actual, literal judge has decided the evidence shows that Apple was not acting in good faith, and in fact were behaving illegally. This isn't a "both sides" argument, Apple is definitively in the wrong.
m3kw9
The math of a one time fee is different than a percentage. Not sure what you are getting at by presenting a business model that doesn’t make sense as an argument
bze12
Their entire setup was egregious.
They charge 27% for purchases made using external payment processors. Including Stripe fees that's net-zero (not even accounting for any chargeback risks). They severely limit how you can display the external purchase link too, and display an obnoxious warning screen when you tap it.
I would be surprised if a single developer adopted it.
https://developer.apple.com/support/storekit-external-entitl...
tech234a
Only one I'm aware of is Delta Emulator by Riley Testut [1].
[1]: https://www.macstories.net/news/an-app-store-first-delta-add...
xuki
> 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.
The bean counters won. I guess Tim Cook does care about the bloody ROI after all.
https://www.forbes.com/sites/stevedenning/2014/03/07/why-tim...
thealexliang
"Apple willfully chose not to comply with this Court’s Injunction. It did so with the express intent to create new anti-competitive barriers which would, by design and in effect, maintain a valued revenue stream; a revenue stream previously found to be anti-competitive. 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."
I'd recommend skimming through the whole thing because Judge Rogers just eviscerates Apple over and over.
ocdtrekkie
It's so good... but also it has taken so, so long to get here. The US should've done something about the app store tax a long time ago. People thought Apple won their case, but it... really just took time to get here. You get to try malicious compliance with judges exactly once, and then you're over.
snowwrestler
It’s a shame Phil Schiller has gotten sidelined. He always seemed like a good guy and a big part of the “soul” of Apple as it made its resurgence under Jobs after the NeXT merger.
sensanaty
Is there any hope of a non-joke fine here? Or are we just looking at another kiss of the wrists as them and Google and all the other big tech cos fuck literally everyone over?
semiquaver
The important penalty isn’t a fine, it’s a forced change of behavior to comply with the injunction. The referral for criminal contempt charges will end up being a slap on the wrist if they are even charged though.
bpodgursky
No this is actually going get Tim Cook's attention. Contempt can mean actual jail time for execs.
ocdtrekkie
A fine isn't even necessary: Apple's App Store business just ended. Between app sales and IAP it has a 30% tax. If an app developer swaps out for a Stripe portal they're paying 3% and probably at least doubling their own profit margin.
Only an idiot would still be selling apps through Apple's payments next week. The only way Apple will make any money at all on apps is if it drops it's fees to 10% or below.
brudgers
Unless the fine is the better part of a trillion dollars, it won’t make any difference.
Apple has close to 1/2 trillion in revenue a year. A few billion is rounding error.
sureIy
Some country recently fined Apple every day until they resolved the issue. I think such solution would both help push Apple to actually resolve the issue and do so in a timely manner.
As much money as they have, no shareholder wants to see a $1m/day expense on the balance sheet.
zamadatix
$1m/day since they launched the iPhone App Store in 2008 is roughly 2 months worth of 30% App Store commision revenue. I.e. they'd be making more money by keeping such a small fine on the balance sheet than complying.
The same thing at $1b/day or rapidly increasing with time might be effective though, but I'm not sure what's really assignable by the given court or not.
cwillu
that's still not even a billion a year though, on a revenue of hundreds of billions.
DecentShoes
If they refuse to comply, why don't we just... arrest them?
Like, you know, we do for someone who was poor and starving and stole 10$ of food?
brudgers
You can’t arrest a fictitious person.
bobmcnamara
Or toss Tim Apple in the huscow for contempt.
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ncallaway
I don’t think that’s likely with the referral to the US attorney.
I think Cook will probably find that there is a dollar value that will get Trump to instruct a us attorney to drop charges
HDThoreaun
Apple makes tens of billions of dollars a year off App Store royalties. If this ruling is upheld this fine has a net present value of 100 billion - trillion dollars depending on your discount rate. They will lose billions of dollars a year forever.
flawn
firloop
Apple News+ link: https://apple.news/AlNSjMktVT9afQICM2yRVYw
thaumasiotes
The article is short enough that it makes more sense to quote it in full than to provide an archive link:
> A federal judge hammered Apple for violating a ruling in an antitrust case that required the company to loosen certain restrictions it imposes on software-makers in its App Store.
> Judge Yvonne Gonzalez Rogers ordered the iPhone-maker to allow developers to steer users to alternative methods of paying for services or subscriptions offered in the App Store. The company also can no longer impose fees in such scenarios or restrict the ability of software-makers to offer links or otherwise communicate alternate payment options with consumers.
> “Apple willfully chose not to comply with this court’s injunction,” she said in the ruling. “It did so with the express intent to create new anticompetitive barriers.” She referred the case to federal prosecutors to determine whether a criminal contempt investigation is appropriate.
> The order is the latest twist in the long-running legal dispute between Apple and Epic Games, developer of the popular videogame “Fortnite.”
gok
Excellent news for scammers.
cuuupid
Does this mean Apple will have to give up their % fees or that they have to allow third party app stores in the US? And when does that go into effect?
galleywest200
> Judge Yvonne Gonzalez Rogers ordered the iPhone-maker to allow developers to steer users to alternative methods of paying for services or subscriptions offered in the App Store. The company also can no longer impose fees in such scenarios or restrict the ability of software-makers to offer links or otherwise communicate alternate payment options with consumers.
The ruling means this starts immediately it seems, as I cannot see a date listed anywhere.
ycombinatrix
This means people will act outraged for a week, then nothing will change.
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pram
Neither!
EcommerceFlow
The timing of this with Tim Sweeney's interview with Lex Friedman is great. Watching a few hours of it, it's no wonder he hasn't slowed down in the slightest in this fight against Apple, he is unrelenting in his focus.
zozbot234
[flagged]
About time. I'm tired of apologizing to customers who purchase subscriptions in my app only to discover they could have purchased the exact the same thing from my website for 15% less. "Why didn't you tell me?"
Excerpt from the filing:
"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."