Early in his life Certificate for Epic Games vs Apple Apple CEO Tim Cook on Friday described his company’s mission: “To create the best products in the world that truly enrich people’s lives.” For the rest of the day, Epic’s attorneys sought to prove that what Apple wanted the most to enrich was itself, at consumers’ expense.
What does greed prove? Over the past three weeks, Epic has doubled Her claims Apple’s monopoly power over the iOS ecosystem. The It is an electronic game The publisher is desperate to show that Apple’s core is corrupt and that its business practices too.
Apple today is worth more than $ 2 trillion, and one reason is the structure of this ecosystem: It manufactures and owns Apple devices, the iOS operating system, the Apple App Store, and the payment system that consumers use for these apps. In defending itself against Epic’s lawsuit, Apple insists that Iron Fist in the iOS Market Not a simple game for huge profits. Instead, it’s all in the service of keeping their customers safe, user experience simple, and their developers delight. As Apple’s highest-ranking ambassador, Cook had a big job ahead of him.
Cook spent the day on the defensive, posing specific questions from Epic’s attorney and US District Judge Yvonne Gonzalez Rogers. One of the major issues with the issue was the commission that Apple takes from the App Store, up to 30 percent on digital, in-app purchases. In its lawsuit, Epic places that 30 percent commission as “monopoly tax.” “The lack of competition for the 30 per cent is worrying,” Judge Rogers said just before Cook took the podium.
Digital markets have had 30 percent commissions over decades. Cable companies charged her for pay-per-view movies in the 1990s. In the mid-2000s, Apple convinced record companies that they deserved a 30 percent commission from song sales in the iTunes Store. The labels continued in a desperate attempt to curb online music piracy. Today, Apple makes a similar argument for its App Store commission – just instead of fighting Napster, the iOS malware infection rate is relatively low.
Commission is standard in games as well. Now that the lion’s share of online video game sales has moved away, digital game marketplaces like Steam, Nintendo Online Store, Microsoft Store on Xbox and PlayStation Store all charge 30 percent of game sales.
Epic has been fighting a crusade against the 30 percent commission for years, which is part of its long quest She paints herself as a good gaming person. In 2018, it launched the Epic Games Store, which took only 12 percent off game sales, leaving developers a bigger share of the cake. Microsoft followed suit this year, but only with its own PC app. “We want to make sure we can compete in the market,” said Sarah Bond, Microsoft’s vice president at the time.
Epic argues that game companies like Sony and Nintendo are different from Apple, although they are also reaping the benefits of the overall hardware, software, and market synergies.
Tim Sweeney, CEO of Epic, said in an interview with GamesIndustry.biz. During the Epic Games vs Apple During the trial, Xbox Business Development Vice President Lori Wright testified that Microsoft was selling its Xbox consoles at a loss. And if you don’t charge commission on the Xbox Store, you’ll lose money on Xbox systems. Sony Sell it PlayStation is also puzzled. Epic has also revealed that its Epic Games store is not profitable, partly because it is new and partly because the company has paid huge sums to game developers for licenses to offer free games.