Apple CEO Tim Cook joins Epic’s battle for app stores

In Friday’s testimony, Apple CEO Tim Cook denied his allegations of illegal monopoly, as a way to keep things simple for customers while protecting them from security threats and privacy breaches. Described the powerful management of the mobile app store.

The unusual appearance of a courtroom by one of the world’s most famous executives arose at the end of a three-week trial over antitrust proceedings filed by Epic Games, the maker of the popular video game Fortnite.

Epic is trying to defeat the so-called “walled garden” of iPhone and iPad apps. It welcomes users and developers while keeping out competition. Created by Apple co-founder Steve Jobs a year after the iPhone’s 2007 debut, the App Store is Apple’s main source of revenue, a money-making machine that helped make $ 57 billion in profits last fiscal year. It became the source.

Epic is trying to prove that the store has transformed into a discounted vehicle. Earn 15% to 30% commissions From an in-app transaction, but blocks the app from offering other payment methods. This extends to just displaying a link that opens a web page that provides a fee-free way to pay for subscriptions, in-game items, and more.

Apple CEO Tim Cook, who arrived in federal court in Oakland, California on Friday, was chased by his security details.
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Cook’s testimony, guided by friendly questions from Apple lawyers, often sounded like a commercial for the iPhone and other products, and he praised him as the best in the world. The tone wasn’t a coincidence. In addition to relying on Cook to win the proceedings against Epic, Apple saw his carefully watched court appearance as an opportunity to tell the story in the app store. It is also under the supervision of US and European lawmakers and regulators...

“For us, our customers are everything,” Cook explained while wearing a face shield, but the court in Oakland, California, where access to a small number of people was restricted due to a pandemic, had no mask. did. According to Cook, the effort includes ensuring that technology remains “simple, not complex” for users of Apple products, and protecting privacy, which is called “one of the most important issues of the century.” I will.

Cook is expected to face a much more difficult challenge later on Friday when Epic lawyer Gary Bornstein has the opportunity to burn him. The sparring can take about two hours, allowing you to delve into Cook’s strategy since taking office as CEO about 10 years before Jobs died of cancer in October 2011. There is sex.

Apple is pushing fees hard as a fair way to help app makers pay for innovation, help security controls reach these goals, and at the same time benefit app developers, including Epic. I’m defending. Apple says it has invested more than $ 100 billion in such features.

Epic Games, the maker of the popular online game Fortnite, has sued Apple in federal court and accused Apple of anti-competitive behavior regarding fees charged to developers by the App Store.
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The App Store is also a mirror fee charged by major video game consoles (Sony’s PlayStation, Microsoft’s Xbox, Nintendo’s Switch) and similar app stores operated by Google for more than 3 billion mobile Android devices. It also claims to be outsourced. This is about twice as much as an active iPhone, iPad, or iPod that relies on the Apple store for apps.

The App Store is ranked as one of Apple’s greatest successes during Cook’s reign. Since starting with just 500 apps in 2008, the store has grown to 1.8 million apps, most of which are free. Apple has more than doubled its service sector’s annual revenue from $ 24 billion in 2016 to $ 54 billion last year using fees and an exclusive in-app payment system.

“I think it was an economic miracle,” Cook bragged on Friday.

This boom was not foreseen by Jobs. Jobs publicly stated that Apple didn’t expect the App Store to be that profitable shortly after the store opened. Epic lawyers repeatedly quote these comments as evidence that Apple has rebuilt its store to drive revenue growth after the popularity of mobile apps became apparent.

How profitable the App Store is is controversial throughout the trial. Accounting experts hired by Epic estimated the rate of return to be in the range of 70% to 80%, based on a review of Apple’s confidential documents. But Apple claims that these numbers aren’t accurate because they don’t reflect the costs spread across the company’s business.

Earlier this week, Apple’s longtime executive and former Jobs best friend Phil Schiller confirmed that the company’s fee system had generated more than $ 20 billion in revenue by June 2017. Published by Apple In mid-2017.

Cook also acknowledged that the App Store was useful, but said there were no specific numbers. “If you do, I feel,” he testified.

Apple CEO Tim Cook joins Epic’s battle for app stores

Source link Apple CEO Tim Cook joins Epic’s battle for app stores

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