During a recent court hearing in Oakland, California, Apple executive Phil Schiller testified about his initial opposition to fees charged for in-app transactions processed outside of Apple's payment system. The legal battle between Apple and Epic Games began over four years ago when Epic filed an antitrust lawsuit alleging that Apple had created a monopoly around its App Store.
Although the court rejected the monopoly claims, it ordered Apple to allow developers to display links to alternative payment options. Apple initially resisted this order but eventually complied, albeit with commissions ranging from 12% to 27% on in-app transactions through alternative systems.
Concerns were raised about the compliance and collection risks associated with these fees. Schiller expressed worries about the company's ability to enforce payment collection from developers and the potential strain on its relationship with app developers.
Ultimately, Schiller, along with Apple CEO Tim Cook and CFO Luca Maestri, approved the commissions in January 2024. Cook also advocated for a warning screen to alert consumers about security risks related to alternative payment options.
The ongoing legal proceedings have seen Judge Yvonne Gonzalez Rogers considering holding Apple in contempt of court for not making sufficient changes to comply with her order. The court has expressed frustration with Apple's witnesses for their unclear recollection of the decision-making process.
The hearings are set to continue, with more witnesses scheduled to testify, including one of Schiller's top subordinates, Carson Oliver.
