Apple CEO Tim Cook: "App Store's Closed Nature Focuses on Users, Not Money"
[Asia Economy Reporter Yuri Kim] Apple CEO Tim Cook, who is being sued by game developer 'Epic Games' over App Store commission fees, appeared in court on the 21st (local time) and said, "The closed operation of the App Store is not about money but for the users."
The Wall Street Journal (WSJ) reported that CEO Cook testified as a witness at the federal court in Oakland, California, on the same day and made this statement. Cook said, "We do not think about money at all. We think about the users." This was a rebuttal to Epic Games' argument that Apple monopolizes the App Store for profit and charges high commissions.
The Wall Street Journal evaluated that Apple's decision to put CEO Cook on the witness stand reflected confidence that he would deliver a persuasive message to the judge. CEO Cook testified for over four hours on the stand that day.
This trial was initiated by Epic Games, the developer of the popular first-person shooter (FPS) game 'Fortnite,' who filed a lawsuit claiming that Apple's App Store operating practices violate antitrust laws. Epic Games sued, stating that Apple monopolizes the App Store by blocking the emergence of competing app stores and charges excessive commissions of up to 30% on app sales.
CEO Cook countered Epic Games' claims by arguing that prohibiting other app stores and consistently reviewing all applications sold provides security to users. Apple reviews about 100,000 apps weekly and rejects about 40,000 of them, warning that removing this review process would turn the App Store into a "harmful mess." He also claimed that Apple faces fierce competition from companies like Google and Samsung Electronics and that Apple's investment in the app ecosystem has created significant value for developers.
Regarding the in-app payment system that triggered this lawsuit, CEO Cook added that charging developers fees is important and that without the in-app payment system, things would be chaotic.
Judge Yvonne Gonzalez Rogers said, it seems unfair that game developers earn much less compared to what Apple earns. She also asked why Apple’s in-app payment system is not facing competition and why developers are not allowed to inform users about cheaper payment options other than Apple’s system.
In response, CEO Cook argued that the App Store has many free apps that can attract customers who could be potential benefits to game developers, and allowing independent payments would essentially mean Apple giving up all revenue from its intellectual property.
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The conclusion of this trial was expected on the 24th.
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