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In his early days Testimony Epic Games v. Apple Last Friday, Apple CEO Tim Cook described the company’s mission: “To make the best products in the world that enrich people’s lives.” For the rest of the day, Epic’s lawyers tried It proves that the thing that Apple wants to enrich most is itself, and this harms the interests of consumers.
What can greed prove?In the past three weeks, Epic’s revenue has doubled Allegations Apple’s monopoly on the iOS ecosystem.This Fort night The publisher has desperately stated that Apple’s core has rotted, and so has its business practices.
One of the reasons why Apple’s market value today exceeds 2 trillion US dollars is the structure of the ecosystem: it manufactures and owns Apple devices, the iOS operating system, the Apple App Store and the payment system that consumers use these apps.To defend Epic’s lawsuit, Apple insists Firmly grasp the iOS market This is not an easy way to make a lot of profits; instead, it’s all about maintaining the safety of its customers, simplifying its user experience, and satisfying developers. As the highest spokesperson of Apple, Cook had a difficult job before him.
Cook spent today on defensive issues, raising sharp questions from epic lawyer and U.S. District Court judge Yvonne Gonzalez Rogers. A key issue in the case is the commission Apple collects from the App Store, of which the commission for in-app digital purchases can reach up to 30%. In the lawsuit, Epic set the 30% commission as a “monopoly tax.” Before Cook came to power, Judge Rogers said: “The lack of competition for 30% of people is disturbing.”
For decades, the digital market has charged a 30% commission. The cable company charged it for pay-per-view movies in the 1990s. In the mid-2000s, Apple persuaded the record company that it should get a 30% commission from song sales in the iTunes Store. These record companies are eager to reduce rampant online music piracy. Today, Apple has made a similar argument for its App Store commission-it’s just that the malware infection rate with iOS is relatively low, not against Napster.
Commission is also the standard in the game. Now, the main share of video game sales has been transferred to the Internet, and digital game markets such as Steam, Nintendo online stores, Microsoft Store on Xbox, and PlayStation Store all charge 30% of game sales.
For many years, Epic has been struggling to obtain a 30% commission, which is one of its long-term goals. A good guy who is himself a game. In 2018, it opened the Epic Games Store, which reduced game sales by only 12%, allowing developers to get a share. Microsoft followed closely this year, but only launched PC applications. “We want to make sure that we are competitive in the market,” said Sarah Bond, Microsoft’s vice president at the time.
Epic believes that game companies such as Sony and Nintendo are different from Apple, although they also benefit from overall hardware, software, and market synergies.
Epic CEO Tim Sweeney said in an interview with the media: “There is a reasonable explanation for this on the host, that is, a large investment in hardware (usually sold at a price below cost) and Marketing activities conducted by establishing extensive partnerships with publishers. GamesIndustry.biz.During this period Epic Games v. Apple Xbox business development vice president Lori Wright testified in the trial that Microsoft sold its Xbox console at a loss. If you don’t charge a commission to the Xbox store, it will lose money on the Xbox system.Sony Sell it PlayStations are also at a loss. Epic also revealed that its Epic Games Store is not profitable, partly because it is new, and partly because the company has paid a huge sum of money to game developers to provide licenses for free games.
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