Apple CEO Tim Cook will testify to the House Judiciary Committee as part of an antitrust probe. While the hearing will be tomorrow, Cook shared a statement with the press today about how he believes Apple doesn’t conduct anticompetitive practices, claiming that the App Store does just the opposite.
According to a Bloomberg report, Apple’s CEO says the company is not dominant in any market since other companies like Google and Samsung are leading in market share. Cook believes the investigation on antitrust practices is necessary, but he reaffirms that Apple will not make any concessions.
“After beginning with 500 apps, today the App Store hosts more than 1.7 million — only 60 of which are Apple software,” Cook says. “Clearly, if Apple is a gatekeeper, what we have done is open the gate wider. We want to get every app we can on the store, not keep them off.”
In his vision, the App Store provided new ways for developers to establish businesses that were impossible before the iPhone, which goes against accusations that Apple uses its power against other companies. He also mentions that the App Store has over 1.7 million apps today, but only 60 are Apple software.
Clearly, if Apple is a gatekeeper, what we have done is open the gate wider. We want to get every app we can on the store, not keep them off.
As for the commissions Apple charges developers for each sale through the App Store, Cook reiterates that they’re critical to sustaining the store structure, which he claims is better than anything that existed in the past.
Currently, developers have to pay 15% to 30% of commission to Apple, which has been criticized by other companies since they claim that it’s a way for Apple to make its own services more attractive against these apps. To avoid these fees, developers either increase the prices of their products for iOS users or even entirely remove the possibility of subscribing to services through apps.
In the more than a decade since the App Store debuted, we have never raised the commission or added a single fee. In fact, we have reduced them for subscriptions and exempted additional categories of apps. The App Store evolves with the times, and every change we have made has been in the direction of providing a better experience for our users and a compelling business opportunity for developers.
Earlier today, Apple’s senior vice president of worldwide marketing Phil Schiller stated that Apple treats all apps in the App Store with the same rules. However, he acknowledged that Apple has made some concessions to address the needs of specific developers.
The hearing will take place at 12 p.m. ET on Wednesday, July 29. Given the COVID-19 pandemic, the CEOs will be allowed to appear remotely via video conferencing rather than appearing in-person.
FTC: We use income earning auto affiliate links. More.