This Friday, Apple (NASDAQ: AAPL) CEO Tim Cook has taken the stand in its much noted antitrust lawsuit with ‘Fortnite’ developer Epic Games. The American video game developer sued Apple in August 2020 over in-app purchase disagreements.
Amid the ending phase of the trial Tim Cook now has to refute Epic’s App Store monopoly allegations. Epic tries to prove that the App Store, Apple’s most profitable service, has evolved into a “walled garden” with Apple raking in 15-30% commissions from in-app purchases while prohibiting payment alternatives.
Cook has dismissed these allegations by highlighting that privacy and security concerns require Apple to take tight control over the App Store and iOS operating system. Moreover, he has cited that while the App Store is “not perfect”, it provides significant value to the app economy and emphasized it’s consumer-centric commitment.
External App providers are seemingly in disagreement on the legitimacy of Apple’s business practice. While IAC Chairman Barry Diller accuses Apple of overcharging his companies “in a disgusting manner”, Snapchat CEO Evan Spiegel claims that “we’re happy to pay the 30% commission in exchange for all of the amazing technology that they provide to us”.
What do you think, are Apple's App Store practices justified or is Epic Games in the right to demand its provision of payment alternatives? Leave your thoughts in the comments!