Apple Inc (NASDAQ:AAPL, ETR:APC) shares were in the red ahead of its earnings report on Thursday after the iPhone maker was on the wrong side of major legal decisions on either side of the Atlantic.
In the UK appeals court, the US tech giant was ordered it to pay $502 million to Optis Cellular over a patent infringement, while earlier a US judge accused the tech giant of flouting an earlier court ruling on its App Store policies.
Shares in Apple dropped around 1.4% in pre-market trading on Thursday.
In the UK, the Court of Appeal sided with Optis over the value of a global licence for essential 4G patents used in iPhones and iPads, covering the period from 2013 to 2027.
The ruling significantly increases the damages Apple must pay from an earlier $56.4 million set by London’s High Court, excluding interest.
The dispute hinges on whether Apple breached so-called FRAND (Fair, Reasonable and Non-Discriminatory) terms.
Apple criticised Optis as a “non-practicing entity” exploiting the patent system, and said it would appeal the decision.
Earlier, in California, Judge Yvonne Gonzalez Rogers referred Apple to federal prosecutors for a potential criminal contempt investigation after finding it had “wilfully” ignored a 2021 injunction.
While the company had been ordered to allow app developers to redirect users to external payment methods, bypassing Apple’s commission structure, the company instead imposed a 27% levy on off-platform purchases, which the court said was an attempt to skirt the original ruling.
Apple has said it is in compliance with US rulings and maintains that its current payment policies meet legal requirements.