Apple CEO Tim Cook has concluded his extraordinary testimony defending the company’s iPhone App Store against charges that it has grown into an illegal monopoly.
Cook spent more than three hours on the stand Friday in Oakland, California, putting the finishing touch on Apple’s defense against the antitrust suit filed by Epic Games.
Epic, which makes the wildly popular Fortnite video game, is waging a legal and public relations battle against Apple, arguing that the company runs an illegal monopoly that crushes app developers with exorbitant fees for all transactions.
Apple does not allow users of its popular iPhones and iPads to download apps from anywhere but its App Store, and developers have to use Apple’s payment system, which takes its cut of up to 30 percent.
In his testimony, Cook sounded at times almost like a commercial for Apple, touting the company’s products as the best in the world under guidance from friendly Apple attorneys.
But things turned tense under cross examination, as Epic lawyers grilled him on the company’s ironclad control of the App Store, lucrative deals with purported competitor Google, and Apple’s operations in China.
Under direct examination, Cook said that Apple was justified in charging the 30 percent commissions it takes on all transactions made through the App Store, which anchors Apple’s $53.8 billion services business.
Cook testified that Apple has invested $100 billion in research and development since developing the iPhone, and that App Store revenue ‘provides a return on our investment.’
A court sketch shows Apple CEO Tim Cook testifying in a plastic face shield on Friday. Cook described the company’s ironclad control over its app store as a way to keep things simple for customers while protecting them against security threats and privacy intrusions
Apple CEO Tim Cook gestures after testifying in a federal court case brought by Epic Games. Epic charges that Apple has transformed its App Store into an illegal monopoly
Apple CEO Tim Cook wears a plastic face shield as he walks through the Ronald V. Dellums building on Friday in Oakland, California before taking the witness stand in an antitrust trial
The CEO emphasized Apple’s devotion to consumers and what he said was a commitment to privacy, saying that much of the company’s investments were targeted at preserving privacy.
‘Privacy, from our point of view, is one of the most important issues of the century. And safety and security are the foundation that privacy is built upon,’ he said, comparing the issue of privacy to civil rights struggles.
Cook argued that the App Store would become a ‘toxic’ mess if the iPhone maker were forced to allow third-party apps without reviewing them.
‘We could no longer make the promise.. of privacy, cheap usa private proxies safety and security,’ Cook said under questioning from Apple attorney Veronica Moye in federal court in California.
Cook also touted a program launched last year — after Epic filed its suit — that cuts the commission rate in half for software developers with less than $1 million in annual net sales on its platform.
Cook was sworn in at the federal courthouse in Oakland, California shortly after court was called to session at 8am PT on Friday. He is seen above arriving at the trial
Apple CEO Tim Cook gestures from the elevator as he arrives in court on Friday to testify at the conclusion of a weeks-long antitrust trial
Cook waves from the elevator as he leaves after testifying for more than three hours
Cook insisted that the reduction in App Store fees was primarily in response to the coronavirus pandemic and out of concern for small businesses, rather than a defensive move in response to litigation and potential regulations, as Epic claims.
He also called the App Store an ‘economic miracle’, saying that almost 2 million people are estimated to have had jobs created through the App Store.
Apple started with 500 apps, and now has 1.8 million, Cook said. ‘It’s likely been one of the most important job segments out there in a growth point of view over the last decade,’ he added.
Under cross examination from Epic’s lawyers, the testimony grew tense at times as Cook was grilled about Apple’s actions toward app developers and a reported $10 billion partnership with Google.
At one point, an attorney for Epic mentioned that he himself owns an iPhone, adding ‘I hope it still works after the cross examination today,’ prompting laughter from Cook.
‘Fortnite’ creator Epic Games’ Chief Executive Tim Sweeney arrives on Friday for the final stages of the weeks-long antitrust trial at federal court in Oakland, California
Apple’s App Store chief Phil Schiller arrives in court on Friday as Tim Cook took the stand
Apple’s general counsel Kate Adams arrives at the Oakland courthouse on Friday
Epic Games attorney Katherine Forrest (right) at the United States District Court on Friday. Epic Games, the maker of popular video game Fortnite, is accusing Apple of antitrust behavior