Apple's App Store Fees Under Scrutiny: Schiller's Testimony Fails to Convince Judge

Judge Remains Skeptical as Apple's Schiller Defends App Store Fee Adjustments

iOS - 20-05-2024 02:44

Apple's ongoing battle with Epic Games over its App Store fees took a dramatic turn as Apple Fellow Phil Schiller took the stand. However, despite Schiller's testimony, Judge Yvonne Gonzalez-Rogers remained unconvinced of Apple's rationale for its fee adjustments.

Schiller attempted to justify Apple's recent 27 percent commission fee change, emphasizing it as a good-faith effort to comply with the court's order. Yet, the judge challenged Schiller's assertion, expressing skepticism over the lack of data supporting Apple's claim of a lower effective commission rate for developers.

In a surprising revelation, App Store Senior Director Carson Oliver admitted that Apple sought external advice from Analysis Group regarding fee adjustments. However, the judge questioned the disparity between Analysis Group's recommended rate of 12.3 percent and Apple's decision to charge 27 percent. Oliver defended Apple's stance, citing additional services provided by the company.

Despite Oliver's testimony, the judge remained unconvinced, highlighting the lack of empirical evidence supporting Apple's claims. The executive group's assertion of a lower effective rate was deemed a "big assumption" by the judge.

As the legal battle continues, Schiller will be recalled to the stand to further defend Apple's position. Stay tuned as the case unfolds on May 22.

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