Apple Fellow Phil Schiller defends 27% App Store fee in court
In 2020, Phil Schiller became an Apple Fellow after a long career at Apple that began in 1987.
Apple Fellow Phil Schiller told a U.S. judge that the company’s new 27% fee on purchases made outside its App Store are a good-faith attempt to comply with a judge’s 2021 order.
Leah Nylen for Bloomberg News:
“We are trying to enable what the law requires,” Apple Fellow Philip Schiller said Friday during the fourth day of a hearing focused on Apple’s compliance. “There was mentioned in the order about if Apple has a right to a fee even without” developers using its in-app payment system.
Schiller, a long-time executive who helped develop the App Store, is the most senior executive to testify at the hearing before US District Judge Yvonne Gonzalez Rogers in Oakland, California. She is deciding whether Apple’s new fees comply with her 2021 order that the iPhone maker must allow developers to provide links to cheaper payment options online.
MacDailyNews Take: You know, because the week before, Gonzalez Rogers ordered Target to allow Walmart to display signs advertising lower prices next to every product…
Oh, wait, they aren’t forced to do that by some ditzy judge. Because it’s ludicrous, illogical, and just plan wrong. – MacDailyNews, September 10, 2024
Carson Oliver, senior director for business management for the App Store, testified that… Apple provides a number of services to developers including discovery of apps, distribution, developer tools and platform technology, along with additional privacy, user trust and safety that aren’t comparable to other platforms…
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MacDailyNews Take: Security is certainly a major concern.
As for Apple’s App Store commissions:
How much did it cost developers to have their apps burned onto CDs, boxed, shipped, displayed on store shelves prior to Apple remaking the world for the better for umpteenth time? Apple incurs costs to store, review, organize, surface, and distribute apps to over one billion users. — MacDailyNews, June 10, 2022
[I]f developers like Epic Games want to advertise lower prices using Apple’s App Store, Apple should simply charge an in-store advertising fee. We suggest it be 15% for developers making under $1 million per year and 30% for those making $1 million or more annually. – MacDailyNews, September 10, 2024
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