As part of its initial arguments in the lawsuit against Epic Games, Apple he claims that its policies protect the privacy, security and quality of the App Store. Furthermore, he adds that Epic only sued because he no longer wanted to pay the commissions.
The Epic Games trial against Apple began yesterday with opening discussions from both sides. The case stems from a lawsuit that Epic Games filed against Apple after inducing the company to remove “Fortnite” from the App Store due to the inclusion of a direct payment system that is not allowed.
In her opening remarks for Apple, attorney Karen Dunn responded to Epic Games’ arguments:
Epic, a $ 28 billion company, has decided it no longer wants to pay for Apple’s innovations. So Epic demands that this court force Apple to let untested and untrusted apps and app stores into its App Store.
Apple focuses on privacy, security and quality
Apple’s attorney later claimed that the privacy and security of the App Store they significantly outperform their competitors. At the same time, the App Store has created opportunities for developers by keeping quality and reliable apps for consumers. Epic Games, on the other hand, has simply decided that it no longer wants to pay commissions to Apple, integrating its own in-app payment system, violating the guidelines. Failing to achieve his goal, he decided to file a lawsuit against Apple.
Apple charges a 30% commission on app and in-app purchases (15% for companies now billing less than $ 1 million a year), which attorney Dunn says is an industry standard. Most of the apps on the App Store are free, so many developers pay nothing to Apple. In fact, developers can monetize through other tools, such as in-app advertising. Additionally, Apple’s actual fees have decreased on the App Store. In 2019, the actual fees for gaming apps were 8.1%, while for all other apps it was 4.7%.
Apple vs. Epic Games: iOS won’t become like Android
Apple claims that Epic Games’ market definition is somewhat narrow and wrong. 95% of iOS users regularly use another device other than an iPhone, such as a Mac or game console. Not surprisingly, the majority of “Fortnite” players are also found on other platforms, with iOS only ranking third or fourth in most studios. This is an unmistakable sign of a competitive market.
Epic Games described the App Store as a “walled garden” and featured emails from current and former Apple executives such as Steve Jobs, Phil Schiller, Craig Federighi, Eddy Cue and Scott Forstall in an effort to prove this claim. The software house therefore wants Apple to be forced to open to third-party app stores on iOS and allow developers to offer direct payment systems.
By allowing the use of alternative app stores, however, Epic Games is simply asking Apple to turn iOS into Android, removing its competitive advantage. This is something that neither Apple nor its customers want.
Profit Margins: Calculations do not include software costs
Finally, Apple took on the thorny issue of profit margin. According to Epic Games, Apple’s fees are unnecessary because its margins on the App Store are huge. Apple responds by stating that margin calculations only look at part of the iOS ecosystem. For example, they do not include the software costs Apple has to incur to run the App Store, including API development and other developer tools.
Additionally, Apple notes that its business model is shared by many other companies, including some that have previously allied with the Coalition for App Fairness, including Sony, Microsoft and Nintendo.