{"id":247073,"date":"2021-05-12T02:23:00","date_gmt":"2021-05-11T23:23:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/apple-pushes-back-against-epic-claims-to-defend-app-payment-system\/"},"modified":"2021-05-12T02:23:00","modified_gmt":"2021-05-11T23:23:00","slug":"apple-pushes-back-against-epic-claims-to-defend-app-payment-system","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/apple-pushes-back-against-epic-claims-to-defend-app-payment-system\/","title":{"rendered":"#\n  Apple pushes back against Epic claims to defend app-payment system"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a35a9ac12319\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a35a9ac12319\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/apple-pushes-back-against-epic-claims-to-defend-app-payment-system\/#Jon_Swartz\" >Jon Swartz<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">App<\/a>le pushes back against Epic claims to defend app-payment system<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\">\n<\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\">\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000265164\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Epic <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">Game<\/a>s v. Apple got into the weeds Tuesday, as the gaming company\u2019s main economic witness clashed with an attorney for the iPhone maker.<\/p>\n<p> David Evans, chairman of Global Economics Group, picked up where he left off Monday. For a second day on the stand, he asserted Apple Inc.<br \/>\n        AAPL,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202934861\/composite\" class=\"negative\">-0.74%<\/bg-quote><br \/>\n       has maintained a monopoly for more than a decade over the iOS in-app payment solutions for digital content, which has harmed consumers by raising prices for developers, who pass on some portion of their fees to consumers.<\/p>\n<div class=\"paywall\">\n       \u201cApple has substantial market power\u201d in smartphone operating systems, Evans said Monday. Apple and Google\u2019s Android, he concluded, are a duopoly that have controlled 100% of the smartphone OS since 2013. Globally, excluding China, the split is 60%-40% Android; in the U.S., it\u2019s about even, he said.<\/p>\n<p><strong>Read more: Epic takes aim at Apple\u2019s financial advantage in App Store model<\/strong><\/p>\n<p>When pressed by Apple attorney Daniel Swanson, Evans said he would \u201cguess we\u2019ve been retained\u201d in the Google Play antitrust litigation. Swanson pointed out Evans previously had not testified in antitrust litigation during a grinding cross-examination that got into the weeds of defining in-store app payments.<\/p>\n<p>Apple\u2019s game transactions are not substitutes for digital game transactions on the Sony PlayStation store nor Valve Corp.\u2019s Steam, according to Evans. \u201cThey are not significant substitutes in the way we use the term,\u201d he said.<\/p>\n<p>Swanson countered, however, that 11 apps use their own payment processing: Grubhub Inc.<br \/>\n        GRUB,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210404212\/composite\" class=\"negative\">-0.93%<\/bg-quote><span>,<\/span><br \/>\n       Wish, StubHub , Uber Technologies Inc.<br \/>\n        UBER,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/211348248\/composite\" class=\"positive\">+0.92%<\/bg-quote><span>,<\/span><br \/>\n       DoorDash Inc.<br \/>\n        DASH,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/222973991\/composite\" class=\"positive\">+3.40%<\/bg-quote><span>,<\/span><br \/>\n       Lyft Inc.<br \/>\n        LYFT,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208999293\/composite\" class=\"negative\">-0.69%<\/bg-quote><span>,<\/span><br \/>\n       Instacart, Postmates, Amazon Shopping<br \/>\n        AMZN,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210331248\/composite\" class=\"positive\">+1.05%<\/bg-quote><span>,<\/span><br \/>\n       Walmart Inc.<br \/>\n        WMT,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207374728\/composite\" class=\"negative\">-0.90%<\/bg-quote><br \/>\n       and eBay Inc.<br \/>\n        EBAY,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/204653455\/composite\" class=\"negative\">-1.64%<\/bg-quote>\n      <\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>\u201cWhen I go to the App Store, it\u2019s because there\u2019s an app I want to get,\u201d Evan replied. \u201cI don\u2019t go to the App Store and troll around for apps that have in-app purchases.\u201d<\/p>\n<p>\u201cBy and large in the world we live in now, we are smartphone-based and app-based for much of what people do,\u201d Evans said later. \u201cI don\u2019t believe that\u2019s really a realistic option.\u201d<\/p>\n<p>An Apple legal strategist characterized Evans\u2019 testimony as evasive and stalling, and the economist struggled to pin down when the App Store became a monopoly.<\/p>\n<p>Epic ended the day with Susan Athey, economics of <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> professor at Stanford University\u2019s Graduate School of Business, on the stand. She\u2019s a former top economist at Microsoft Corp.<br \/>\n        MSFT,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207732364\/composite\" class=\"negative\">-0.38%<\/bg-quote><span>,<\/span><br \/>\n       and currently advises Expedia Group Inc.<br \/>\n        EXPE,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202291990\/composite\" class=\"negative\">-0.40%<\/bg-quote><span>,<\/span><br \/>\n       car-sharing company Turo and Rover.com, which operates an online marketplace for people to buy and sell pet-care services. (An Apple lawyer dwelled on Athey\u2019s work for Microsoft.)<\/p>\n<p>While Tuesday\u2019s dry proceedings were hardly grab-the-popcorn stuff, they are considered crucial in defining what constitutes a relevant market in the federal case. Epic Games Inc. faces an onerous task in establishing that Apple broke antitrust law with an ecosystem that gouges developers, who pass those costs to consumers, legal experts say.<\/p>\n<p>\u201cThe question is, can Epic define these tech markets based on large ecosystems, with inherent monopoly power?\u201d longtime antitrust attorney David Kesselman told MarketWatch. \u201cIf it can\u2019t, then the onus is up to Sen. [Amy] Klobuchar and others to change the law.\u201d<\/p>\n<p>Regardless of Judge Yvonne Gonzalez Rogers\u2019 decision in the bench trial, Kesselman expects it to be appealed to the Ninth Circuit court of appeals.<\/p>\n<p>Evans, whom Epic is leaning heavily on to prove its case, has detailed Apple\u2019s monopoly in smartphone operating systems as the relevant market in question in the federal trial being held in Oakland, Calif. <\/p>\n<p>Smartphones and game consoles are different types of markets, he stressed, with iOS and Android examples of a \u201c<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> purpose operating system\u201d used for multiple apps, while game consoles are a special operating systems dedicated to gaming.\u00a0It is Epic\u2019s contention that Apple has abused its dominance on the App Store to charge developers 30% commission fees; Apple counters that 30% is the industry average on similar app stores run by the likes of Alphabet\u2019s<br \/>\n        GOOGL,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202490156\/composite\" class=\"negative\">-0.95%<\/bg-quote><\/p>\n<p>        GOOG,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205453964\/composite\" class=\"negative\">-1.40%<\/bg-quote><br \/>\n       Google, Samsung Electronics Co. Ltd.<br \/>\n        005930,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209800866\/delayed\" class=\"negative\">-2.40%<\/bg-quote><span>,<\/span><br \/>\n       Sony Group Corp.<br \/>\n        SONY,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208567357\/composite\" class=\"negative\">-1.39%<\/bg-quote><br \/>\n       and others.<\/p>\n<p>Larry Downes, project director at the\u00a0Georgetown\u00a0Center for Business and Public Policy\u2019s Evolution of Regulation and Innovation, has a contrarian view.<\/p>\n<p>Downes believes the case boils down to whether Apple engaged in an abuse of market power that is harmful to consumers through higher prices, and the fore-closing of competition to developers.<\/p>\n<p>On Tuesday, Apple poked a hole in Epic\u2019s assertion during the trial that fraud is rampant on the App Store because of a slipshod review process. Apple said its review team <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.apple.com\/newsroom\/2021\/05\/app-store-stopped-over-1-5-billion-in-suspect-transactions-in-2020\/\" class=\"icon none\">stopped more than $1.5 billion in potentially fraudulent transactions last year<\/a> by keeping nearly a million risky and vulnerable apps\u00a0out of the store.<\/p>\n<p>Apple\u2019s case could start as early as Friday. Apple Chief Executive Tim Cook is scheduled to be the last witness.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Jon Swartz\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Jon_Swartz\"><\/span>Jon Swartz<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D40BCC0F9088%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Apple pushes back against Epic claims to defend app-payment system &#8221; Epic Games v. Apple got into the weeds Tuesday, as the gaming company\u2019s main economic witness clashed with an attorney for the iPhone maker. David Evans, chairman of Global Economics Group, picked up where he left off Monday. For a second day on&#8230;<\/p>\n","protected":false},"author":1,"featured_media":238647,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-247073","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/247073","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=247073"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/247073\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/238647"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=247073"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=247073"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=247073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}