Apple acquires a company every 3-4 weeks.
Apple Inc. (NASDAQ: AAPL ) said Monday that it does not want to be like Android, the competing mobile operating system owned by Alphabet (NASDAQ: GOOGL ) Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL), and that the rules from their App Store have created an ecosystem that benefits iPhone developers.
What Happened: Apple made these comments on the first day of a landmark three-week antitrust trial with “Fortnite” video game developer Epic Games Inc. in relation to App Store rules, CNBC reported.
“Epic wants us to be Android, but we don’t. And our consumers don’t want that either, “said Karen Dunn, an Apple attorney.
Epic reportedly accused the Tim Cook-led company of building a “walled garden” by luring developers and customers to the iOS mobile operating system and later intentionally locking them inside, making it difficult for them to switch to Android. or other platforms. The company claimed that Apple’s App Store is anti-competitive.
Apple argued that the iPhone operating system would be less secure and less reliable for consumers and developers if the tech giant did not have control of the ecosystem, according to the information provided.
The Cupertino-based company also noted that there is no anti-competitive behavior in the gaming market, as users can switch to Android, Microsoft Corp’s Xbox . (NASDAQ: NASDAQ: MSFT ) or Sony’s PlayStation (T: 6758 ) Group Corporation (NYSE: SONY).
Why It Matters: Last August, Epic Games took Apple and Google parent Alphabet to court after the game “Fortnite” was removed from the app stores run by the two tech companies. The removal came after Epic Games tried to circumvent a 30% cut that both companies charge on purchases made in-game.
Apple and Google have faced various allegations surrounding their App Store policies, including fees for digital purchases. Apple has rejected third-party payment tools for in-app purchases.
In November of last year, Apple slashed its App Store fee to 15% for small businesses making up to $ 1 million a year. Google replicated the measure in March of this year. However, Tim Sweeney, CEO of Epic Games, dismissed Apple’s decision to cut fees for small developers as a measure to suppress criticism.
The price movement: On Monday, Apple shares closed 0.8% higher at $ 132.54 in the regular trading session, but fell almost 0.2% to 132.33 in the aftermarket.