Apple executives to testify in Epic Games antitrust hearing

Judge orders Apple executives to testify as Epic Games pursues contempt ruling over App Store practices.

The Apple logo inside an Apple Store in Paris, France, on March 6, 2024. Photo by Gonzalo Fuentes/Reuters
The Apple logo inside an Apple Store in Paris, France, on March 6, 2024. Photo by Gonzalo Fuentes/Reuters

By Alana Salsabila and Nada Fadiyah

Two senior Apple executives and three other key employees are set to testify in a California federal court next week as a judge resumes a hearing into claims that Apple violated an order to increase competition in its App Store. The hearing stems from the 2020 antitrust lawsuit filed by Fortnite developer Epic Games, which accuses Apple of imposing unfair restrictions on app developers.

U.S. District Judge Yvonne Gonzalez Rogers, who initially ruled against Apple in 2021, rejected the company's attempt to prevent certain employees from testifying. The hearing, scheduled to begin on February 24, will last three days and focus on whether Apple should be held in contempt for allegedly breaching the court's previous injunction.

Apple denies violating court order

The case centers on a 2021 ruling in which Rogers ordered Apple to allow app developers to direct users to alternative payment methods outside of the company’s ecosystem. Epic Games has since accused Apple of undermining that order by imposing a commission structure that effectively maintains its dominance over in-app payments.

Apple has denied any wrongdoing and maintains that it has complied with the ruling. The company recently argued that additional testimony from its employees was unnecessary, stating that Epic had already reviewed extensive documentation regarding its App Store policies.

Key Apple executives to take the stand

Phil Schiller, a top Apple executive overseeing the App Store, and Carson Oliver, the company's director of business management for the platform, are expected to testify in defense of Apple's policies. Three other employees, including Apple’s director of corporate communications Marni Goldberg, will also provide testimony.

Judge Rogers dismissed Apple’s objections to their testimonies, emphasizing in her order that it was “entirely untenable that Apple would not expect Epic to call additional witnesses.”

Legal battle over App Store policies

The ongoing dispute between Apple and Epic Games has been a defining legal battle in the tech industry, with major implications for app developers and digital marketplaces. The lawsuit originally sought to challenge Apple’s control over its App Store, including its requirement that developers use Apple’s payment system, which takes a commission on transactions.

While Epic won a partial victory in 2021 when Rogers ruled that Apple must allow developers to direct users to outside payment options, Apple has continued to enforce policies that Epic argues still restrict fair competition.

The hearing was initially put on hold last year to allow Epic to obtain and review tens of thousands of documents related to Apple’s compliance with the ruling. Now, as the court reconvenes, Epic is pushing for Apple to be held accountable for what it views as noncompliance.

What’s next for the Apple-Epic legal fight?

With Apple executives set to testify, the court’s decision could have significant ramifications for the tech giant’s App Store policies. If Judge Rogers finds that Apple violated her order, the company could face penalties or be required to make further changes to its App Store rules.

The case, Epic Games v. Apple, is being heard in the U.S. District Court for the Northern District of California under case number 4:20-cv-05640.

Legal representation:

  • For Epic Games: Gary Bornstein of Cravath, Swaine & Moore
  • For Apple: Mark Perry of Weil, Gotshal & Manges

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