Following a recent decision by Judge Yvonne Gonzalez Rogers of the United States District Court for the Northern District of California, a nationwide injunction has been issued against Apple. This injunction includes a ban on the tech giant from charging commissions on iOS-derived transactions made off-app, addressing alleged violations of California's Unfair Competition Law (UCL).
The Information Technology and Innovation Foundation (ITIF), a think tank focused on science and technology policy, issued a statement about the decision. Joseph V. Coniglio, the director of antitrust and innovation at ITIF, expressed concerns over what he described as "judicial overreach." He stated, "A finding that Apple violated California’s UCL by limiting developers from linking to outside payment methods has somehow turned into a nationwide injunction prohibiting Apple from charging a commission for these transactions."
Coniglio emphasized that antitrust remedies should focus on preventing illegal conduct and suggested that the ruling allows developers to exploit Apple's ecosystem without due payment. "Indeed, Apple’s attempt to comply with the court’s injunction through a lower commission rate for these transactions does not reflect 'insubordination,' but simply the commonsense expectation that antitrust law does not prevent a company from monetizing its product," he added.
Additionally, he highlighted that the Ninth Circuit had previously determined Apple's restrictions on external links had procompetitive justifications, which do not infringe upon federal antitrust laws. He noted, "Something is wrong when state antitrust law so blatantly displaces federal standards."
Coniglio also linked the decision to broader antitrust issues, referencing the Biden administration's policies, and suggesting congressional interest in reviewing the Federal Trade Commission's authority on antitrust matters. He concluded, "This decision should be a wake-up call to evaluate whether the Sherman Act ought to preempt such wayward enforcement of state antitrust laws."
Inquiries regarding this statement were directed to Sydney Mack at [email protected]