> What happens if Apple says they aren't paying these unjust fines?

Then they'll be subject to additional penalties, seizure of property, etc., and quite possibly shareholder lawsuits stemming from the decision to incur those losses.

> Sure the gov't can make arrests, threats, seize assets -- but in the end, the gov't still don't get what they want

Maybe, given the recent discussion of mandatory limits on encrypted communication services without up-front backdoors, what the government wants is a clear demonstration that the operation of those services interferes with evidence and intelligence gathering in terrorism cases to build the case for new laws restricting the operations of such services.