Apple vs epic: cook may testify in court for 100 minutes this week


Tencent Technology News reported on May 18 that Apple will defend the antitrust charges of Epic Games, the developer of the popular video game fortress night, in court this week, and will invite Tim Cook, Apple’s most powerful spokesman, to testify in court.
Cook is a cautious chief executive who is used to orchestrating his public appearances. He will testify in a trial that, regardless of the verdict, could prove to be one of the most important for the iPhone maker, which faces charges of abusing its market dominance.
As he approaches his 10th anniversary as CEO, cook is no stranger to Apple’s high-profile, life and death moment. As a well-trained public speaker, he has twice testified in Congress, but never appeared in the witness box in court, and his words may influence the judge’s attitude towards the company.
Cook’s testimony is likely to be his most detailed public discussion of the issue, although it is likely to haunt apple in the next few years. According to people familiar with the matter, cook has been preparing for the trial, including hours of mock trials by former prosecutors selected by his legal team.
Cook is expected to seek support for Apple’s argument that apple is not a monopoly, as the case could unravel Apple’s control of the app store. The app store is a key part of Apple’s services business, generating nearly $54 billion in revenue last year.
Epic Games argues that Apple created a monopoly by blocking other app stores on the iPhone and requiring apps to use its in app purchase system to collect digital revenue, allowing it to charge a 30% commission. Epic Games believes that this is an unfair High Commission.
Apple retorts that the commission it charges is fair in terms of the value it creates for developers and users, which is consistent with other companies’ fees. It also takes Android devices, computers and video game consoles as examples to prove that it does not restrict the sale of Fortress night.
Jeffrey jacobovitz, a former FTC lawyer, said: “cook has to prove that the reason Apple charges these fees is not to maintain its dominant position, nor to extract money from some people, but to maintain its business development, which is not unfair.”
Phil Schiller, Apple’s former marketing director, and Craig federighi, Apple’s software director, will testify this week, while cook is expected to testify for 100 minutes this weekend or early next week, as the trial in Oakland, California, appears to be coming to an end.
Apple said in court that cook would talk about the company’s core values, how the company operates and the competition it faces. He may also highlight the economic benefits the app store creates for developers, a theme the company often touts. Apple is seeking to use its executives to further defend that Epic Games’ real motivation is to fight for a better deal for itself.
In this week’s trial, Epic Games is likely to further attack Apple’s claim that the rules surrounding its app store are designed to ensure consumer safety. The company also tried to emphasize its argument that Apple’s security claims were just an excuse to make unreasonable business decisions. Epic Games tries to show that Apple’s app store’s goal has shifted from a break even to a cash cow that can charge unfair commissions and protect profits.
Epic Games found an email between Apple executives in the summer of 2011 that revealed an internal debate about whether a 30% commission would continue to be better for apple. “I don’t think the three to seven percentage will remain the same forever,” Schiller, then marketing director, said in an email to Apple co-founder Steve Jobs and another executive
Schiller then wrote: “once we make more than $1 billion a year from the app store, should we consider such a model: if we can maintain $1 billion a year, can we gradually reduce the share ratio from 70 / 30 to 75 / 25, or even 80 / 20? I know it’s controversial, I just see it as another way to measure the size of the company, what we want to achieve and how we can stay competitive. ”
Epic Games relies heavily on an expert’s analysis of Apple’s record, saying the app store’s profit margin is close to 80% in fy2019. The report cites Apple’s own record to calculate an operating profit margin of 77.8%.
Apple disputes the data, saying they do not represent the way its business operates. To clarify this, Richard Doren, an apple lawyer, asked Tim Sweeney, chief executive of Epic Games, whose company may not have taken into account the shared engineering costs of a particular project. “If someone points out a product or service your company provides and gives an accurate profit margin, you will think that the assessment is fundamentally wrong, won’t you?” Dolan said
“I’m sure Apple will be very happy with Sweeney’s mediocre performance in the last two days because he’s not as confident as he seems,” said David Reichenberg, an antitrust lawyer( Tencent technology reviser / Jinlu)