Two main things are at the centre of the case: the 30% commission Apple takes on in-app purchases, and the fact that no other app stores are allowed to exist on the iPhone and iPad to offer an alternative. – By Philip Kitune.
Epic’s Fortnite is one of the most popular games in the world and makes its money through in-game purchases of character costumes and other digital items.
A 30% cut on millions of such purchases adds up to a lot – but Apple’s rules forbid the company from circumventing its payment methods if a sale is made in the iPhone app.
In August last year, Fortnite offered players a 20% discount if they paid Epic Games directly, in direct violation of Apple’s rules. Apple quickly removed the app from its store – as did Google, which enforces a similar policy.
Epic had clearly expected that to happen. The firm immediately launched a PR blitz to mobilize its fan base and win support, painting Apple as a dominating force suppressing freedom of choice.
Epic, maker of the hit video game Fortnite, claims Apple’s tight control over iPhone apps hurts competition.
During his appearance, Mr. Cook argued that keeping control of the App Store helped keep iPhones secure. He also said he did not know if the App Store made a profit, telling the court Apple did not break down the figures. “We don’t have a separate profit and loss statement for the App Store. “Instead, he said that he had a “feeling” that it was profitable – but could not share figures with the court.
Mr. Cook was being questioned about his oversight of top-level decisions around the App Store’s policies.
