• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

PRESSLED

Your Leading News Source

PRESSLED
Your Leading News Source

  • Home
  • BUSINESS
  • MONEY
  • POLITICS
  • REAL ESTATE
  • US
  • Meet the Reporters
  • About/Contact

US judge digs into Apple app store policies as Epic trial ends

May 25, 2021 by Staff Reporter

SAN RAMON, California: The judge who will decide a case challenging Apple’s stranglehold on its iPhone App Store indicated on May 24 she would like to promote more competition but without dismantling a commission system that reaps billions of dollars for the technology powerhouse.

US District Judge Yvonne Gonzalez Rogers isn’t likely to issue a decision until this summer. But she opened a window into her thoughts during a three-hour session with lawyers for Apple and its adversary, Epic Games, during the final day of a three-week trial in Oakland, California.

Gonzalez Rogers’ line of questioning suggested she sides with much of the defence that Apple has mounted to justify the 15% to 30% commissions it collects for in-app transactions on the iPhone to help pay for the technology powering its devices.

Epic Games, the maker of the popular videogame Fortnite, has been trying to prove the fees are the price-gouging tool of a monopoly hatched within the “walled garden” Apple has built around the iPhone, the app store, its software and other devices such as the iPad and iPod.

To loosen Apple’s tight-fisted control, Epic wants Gonzalez Rogers to issue an order that would require Apple to open the iPhone and its other mobile products to rival app stores. Those alternatives would include Epic’s still-unprofitable app store, which charges a commission of just 12%.

Apple’s app store, in contrast, has become far more profitable than its late co-founder, Steve Jobs, ever envisioned when he opened it 13 years ago. Precisely how profitable wasn’t revealed in the trial, although an Apple executive conceded the company had brought in at least US$20bil (RM82.86bil) as of June 2017.

Gonzalez Rogers doesn’t seem to believe the fees are unreasonable, let alone illegal. That’s in part because because Apple’s commissions mirror those charged on in-app commissions by the app store feeding about three billion devices powered by Google’s Android software, as well as those imposed by major video game consoles – Sony’s PlayStation, Microsoft’s Xbox and Nintendo’s Switch.

The judge also seemed to support Apple’s right to maintain a rigidly controlled ecosystem of products that has won over consumers around the world, including many who pay more than US$1,000 (RM4,143) to buy an iPhone.

“Your formulation seems to ignore the reality that customers choose an ecosystem,” Gonzalez Rogers told Epic lawyer Gary Bornstein. “It is Apple’s business strategy to create a particular type of ecosystem that is incredibly attractive to purchasers, to its consumers. So if those consumers choose to enter into an ecosystem… that’s what you know you’re buying into.”

Bornstein countered that most consumers don’t understand the extent they will be locked into Apple’s ecosystem and often pay scant attention to the costs of in-app purchases that are tiny compared to the price of an iPhone.

That still didn’t seem to convince Gonzalez Rogers that Apple is running on monopoly, but other statements made it clear she still might find the company is engaging in anticompetitive behaviour. During some points in the trial, she has seemed troubled by a provision in Apple stores that forbids in-app notices that purchases can also be made through web browsers and other means that evade Apple’s commissions.

Apple contends allowing in-app links to other payment options besides its own would expose iPhones and other mobile devices to security and privacy threats. When facing some tough questioning from Gonzalez Rogers during his four-hour appearance on the witness stand Friday, Apple CEO Tim Cook also conceded that allowing links within apps to other payment options would undercut the company’s profits.

The judge revisited the issue during Monday’s session. At one point, she wondered aloud whether Apple could just allow apps to insert a notice reminding consumers that payments can made in web browsers, without posting a direct link to the checkout stand. That sort of notice, she mused, wouldn’t be much different than a merchant’s display of the different credit cards – Visa, Mastercard, America Express or Discover – that has long been a staple at cash registers.

During the course of their closing arguments, the lawyers for Epic and Apple each made dramatic pitches in an attempt to get Gonzalez Rogers to see things their respective ways.

Bornstein repeatedly asserted that Apple is trying to paint itself as a “benevolent overlord” acting in the best interests of consumers and the developers of the 1.8 million apps now in the store, up from just 500 in 2008. “But it’s not enough to say, ‘We’re a great company, we’re doing well, and we’re a nice guy’,” Bornstein argued.

Apple lawyer Richard Doren reminded the judge that opening the iPhone to other app stores would weaken a security system that protects consumers and developers alike. Epic “wants Apple to drop its gloves, stand in the middle of the arena and take malware attacks through unreviewed apps”, Doren argued.

Gonzalez Rogers said last week that she hoped to issue her decision by Aug 13. But on Monday warned she may need even more time to review thousands of pages of information submitted during the case. – AP

>>>ad: Don't Miss TODAY'S BEST Amazon Deals!

Originally Appeared Here

Filed Under: TECH/SCIENCE

Primary Sidebar

More to See

Lone Star: Texas Tech Kicker Jonathan Garibay on Dallas Cowboys ‘Opportunity’

The Dallas Cowboys have a vacancy - and just one kicker presently on the roster. And he's a familiar face to Texas Tech fans, as it's Jonathan … [Read More...] about Lone Star: Texas Tech Kicker Jonathan Garibay on Dallas Cowboys ‘Opportunity’

Pan Asia Bank appoints Naleen Edirisinghe as COO – Financial News

Pan Asia Bank recently announced the appointment of Naleen Edirisinghe as its Chief Operating Officer (COO) with effect from 26th April 2022 to take … [Read More...] about Pan Asia Bank appoints Naleen Edirisinghe as COO – Financial News

CRE funds invest billions in U.S. real estate

Multiple commercial real estate funds have poured more than $2.5 billion into the U.S. real estate market in recent weeks, Bisnow reports. These CRE … [Read More...] about CRE funds invest billions in U.S. real estate

Privacy Policy | Terms and Conditions | About/ Contact
Copyright © 2022 · PRESSLED · As Amazon Associates we earn commissions from qualifying purchases · Log in

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT