Apple brings CEO Tim Cook to court in app store defense

San Ramon, CA (AP) — Apple CEO Tim Cook will witness Friday to protect the company’s iPhone app store from allegations of illegal monopoly. It’s far more profitable than I had imagined when its predecessor Steve Jobs opened. Until 13 years ago.

Technology companies look forward to Cook coming to the final touch on Apple’s defenses against 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 that welcome users and developers while avoiding competition. Created by Jobs a year after the iPhone’s 2007 debut, the App Store has become Apple’s primary source of revenue. A money-making machine that helped make $ 57 billion in profits last year.

Epic is trying to prove that the store has transformed into a pricing tool that not only earns 15% to 30% commissions from in-app transactions, but also 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 is a strong advocate of fees as a fair way for app makers to help pay for innovation and security controls that have benefited both iPhone users and app developers, including Epic. Apple says it has invested more than $ 100 billion in such features.

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.

Apple’s iron-clad control over the App Store has already been investigated by European and US regulators and lawmakers.

Magnificent lawyers are expected to spend hours baking cooks on the stands. This question could analyze Cook’s strategy since taking office as CEO nearly a decade before Jobs died of cancer in October 2011, just months before he died of cancer.

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.

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.

App Store profitability has been controversial throughout the three-week 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.

Epic’s question to Schiller may foresee how Epic’s lawyers are trying to chase Cook.

Epic lawyers have repeatedly referred to internal exchanges involving Jobs and other executives, using Apple’s investment in security and personal privacy as an excuse to maintain huge profits from the app store. It describes that.

For example, during Syrah’s testimony, Epic’s lawyer submitted a 2008 email job sent to Syrah and another executive. In that memo, Jobs wondered if Google was targeting the advertising market at the time when it emerged on the iPhone, which relies on an operating software called iOS. “The more energy they spend on iOS, the better,” Jobs wrote to Syrah.

Forrest then asked Syrah two questions. “Did you want Google to be watched over by Apple?” She immediately followed, “Did you have the power to destroy the company’s business?”

Schiller answered no to both questions.

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