Apple CEO Tim Cook Will Testify in U.S. Tech Antitrust Probe in July

[MacRumors]

Apple CEO Tim Cook plans to testify in an upcoming antitrust hearing with the U.S. House judiciary antitrust subcommittee, chairman David Cicilline said today in an interview with Kara Swisher.

According to Cicilline, Apple CEO Tim Cook, Facebook CEO Mark Zuckerberg, Alphabet (Google) CEO Sundar Pichai, and Amazon CEO Jeff Bezos will all appear at the antitrust hearing set to take place in late July.

The antitrust subcommittee has embarked on a probe of competition in digital markets that involves all four companies, and in June, letters were sent out to CEOs asking them to testify.

Apple's App Store policies have been under scrutiny from the U.S. government since last year, and Apple has been questioned about the removal of parental control apps from the ‌App Store in 2019‌, how search result rankings are determined, how Apple's in-app purchase mechanism works, whether apps are permitted to include in-app links to non-Apple payment systems, policies surrounding setting non-Apple apps as default, and more.

Cicilline, who is the chairman of the antitrust subcommittee looking into Apple's App Store agreements with developers, said in June that Apple's App Store fees are "exorbitant" and akin to "highway robbery."

The antitrust subcommittee has been soliciting opinions from developers who create apps for Apple's App Store since November 2019, and recently, those discussions have centered on the 30 percent cut that Apple takes from in-app subscriptions.

Cook is likely to be questioned on Apple's various App Store policies and the responses and concerns that the subcommittee has heard from App Store developers.

The investigation into Apple's App Store practices is said to be in the early stages, but the committee's goal is to generate a report with recommendations on legislative action.

Article Link: Apple CEO Tim Cook Will Testify in U.S. Tech Antitrust Probe in July

 

[nvmls]

Judge: How do you plead Timo?

Timo: Innocent. Although next phone will ship without chargers.

Judge: Granted. Too courageous to imprison.

 

[wbeasley]

How come no one from Microsoft?

I meant they were the embodiment of installing their own software and locking out others for decades?
So they have changed significantly since Bulmer left.
They needed to.

But you still have to wonder.

I don't entirely get this court case.
It's not like you buy an iPhone WITHOUT knowing Apple control the store, hardware and software.
If you don't like that, don't buy it. Simple. Your choice.

And if enough people didn't buy the products, they would change or go under.

That says most people are happy with the way Apple run it.

Same for Facebook, Google and Amazon.

You'd think the world has a enough REAL problems people could be spending time on...

 

[newyorksole]

When’s the last time those 4 guys were all in a room together, if ever? That’s going to be one interesting hearing.
[automerge]1593641233[/automerge]

How come no one from Microsoft?

I meant they were the embodiment of installing their own software and locking out others for decades?
So they have changed significantly since Bulmer left.
They needed to.

But you still have to wonder.

I don't entirely get this court case.
It's not like you buy an iPhone WITHOUT knowing Apple control the store, hardware and software.
If you don't like that, don't buy it. Simple. Your choice.

And if enough people didn't buy the products, they would change or go under.

That says most people are happy with the way Apple run it.

Same for Facebook, Google and Amazon.

You'd think the world has a enough REAL problems people could be spending time on...

I agree with you. It’s honestly ridiculous Lol. There are definitely issues/concerns within the tech industry, but this hearing seems pointless.

 

[JoshBoy]

Highway robbery? At 30%? Well the government takes up to 48% of my income in tax plus charges me additional 10% tax of goods and services and doesn’t provide me with any alternative by default.....

 

[boss.king]

While I completely feel that all the companies in question have too much power, I sincerely hope that the subcommittee has a solid plan in place and knows what they're doing. These corporations are full of incredibly smart people who know how to skirt questions and double-speak their way out of accountability.

At the end of the day, if this results in more competition, I don't think anyone could argue that that would be a bad thing.

Highway robbery? At 30%? Well the government takes up to 48% of my income in tax plus charges me additional 10% tax of goods and services and doesn’t provide me with any alternative by default.....

You realise that money actually goes back into the things you use, right? Roads, schools, hospitals, welfare, public safety and service, etc (at least in theory, America has made some questionable choices in how they actually uses tax money). You also have a say in how that money is used by voting (again, in theory).

 

[ghanwani]

any idea how to get a pass to the after-event party?

 

[HiVolt]

It's not like you buy an iPhone WITHOUT knowing Apple control the store, hardware and software.
If you don't like that, don't buy it. Simple. Your choice.

Dude, you give people too much credit. Vast majority has no idea.

 

[FightTheFuture]

Judge: How do you plead Timo?

Timo: Innocent. Although next phone will ship without chargers.

Judge: Granted. Too courageous to imprison.

Prison? These anti trust cases all end with a $20m fine and big tech just writes a check.

 

[PC_tech]

How come no one from Microsoft?

I meant they were the embodiment of installing their own software and locking out others for decades?
So they have changed significantly since Bulmer left.
They needed to.

But you still have to wonder.

I don't entirely get this court case.
It's not like you buy an iPhone WITHOUT knowing Apple control the store, hardware and software.
If you don't like that, don't buy it. Simple. Your choice.

And if enough people didn't buy the products, they would change or go under.

That says most people are happy with the way Apple run it.

Same for Facebook, Google and Amazon.

You'd think the world has a enough REAL problems people could be spending time on...

What specifically did they lock out? If you’re referring to IE you had other choices, you were not locked out at all.

 

[gnasher729]

Separately from my day job, I also have an app in the store that I wrote just for fun, that I also use myself, with a price of $0.99 because I can't see why people should use it without paying when I invested many hours of work. It's also completely ad free because I hate ads, and has no access to any personal data of the users because I'm not interested.

Using the App Store, I can sell this app in over 100 countries with zero effort. Local taxes are automatically deducted for me. For 30% of the remainder, Apple does all the work for me, displaying the app in the store, handling downloads, restores etc., paying for the servers, handling the sales with laws of 100 different countries. Just setting prices with 100 different exchange rates that change all the time would keep me busy forever. As a result, I've made significant sales to locations mostly in Asia and Africa that I would have never been able to sell to myself.

No, I don't see this as "highway robbery" and "exorbitant" at all.

There are also gazillions of apps created by big companies that are free because they serve some company's purpose. For example banking apps, booking NHS appointments, booking flights or hotels and so on. Apple handles them all for free. And Apple distributes the app that I make my living with for free.

 

[konqerror]

What specifically did they lock out? If you’re referring to IE you had other choices, you were not locked out at all.

As part of the antitrust settlements, Microsoft was required to document and fairly license multiple protocols including SMB, Exchange, domain login. Many of these were other people's standards (SMB was IBM, domain login was MIT Kerberos, Exchange ran off OSF RPC) that Microsoft used as part of embrace, extend, and extinguish.

Similarly, there was an antitrust case with Sun that banned Microsoft from making proprietary extensions to Java.

 

[gnasher729]

Highway robbery? At 30%? Well the government takes up to 48% of my income in tax plus charges me additional 10% tax of goods and services and doesn’t provide me with any alternative by default.....

It costs me about £25 if I drive my car into London. Now that is literally highway robbery

 

[sideshowuniqueuser]

Highway robbery? At 30%? Well the government takes up to 48% of my income in tax plus charges me additional 10% tax of goods and services and doesn’t provide me with any alternative by default.....

Dude you get a LOT of services for that 48%. If every single one of those services were privatised, you would pay a hell of a lot more than 48%. Just walking out your door onto the sidewalk would cost you, as the sidewalk provider would want his heavily marked up, highly profitable, cut on you stepping on his nice concrete sidewalk instead of stepping out on a mud patch like in 3rd world countries. Don't even ask what it costs to build roads and street lighting my friend. And that's just you walking out the door. Imagine what you would get charged to have a police force protect you from armed gangs. Or to have an army protect you from having China decide to invade your house and enslave you. Do you have any idea what it costs to keep an aircraft carrier afloat?

Don't like paying taxes? Move to a 3rd world country were taxes are minimal, and you will soon change your mind. Most people are all twisted up about taxes, but don't realise that taxes are a good thing, and in a lot of countries, should actually be raised higher, but aren't because it is unpopular.

Whereas, the 30% Apple charges the app devs, gives them a highly inflated extortion rate, just so that they can have the pleasure of doing business with you. If the cut were more reasonable and realistic, like 1 or 2%, or even a big fat 5%, then Apple wouldn't be under the microscope, but they got too greedy.

 

[boss.king]

Separately from my day job, I also have an app in the store that I wrote just for fun, that I also use myself, with a price of $0.99 because I can't see why people should use it without paying when I invested many hours of work. It's also completely ad free because I hate ads, and has no access to any personal data of the users because I'm not interested.

Using the App Store, I can sell this app in over 100 countries with zero effort. Local taxes are automatically deducted for me. For 30% of the remainder, Apple does all the work for me, displaying the app in the store, handling downloads, restores etc., paying for the servers, handling the sales with laws of 100 different countries. Just setting prices with 100 different exchange rates that change all the time would keep me busy forever. As a result, I've made significant sales to locations mostly in Asia and Africa that I would have never been able to sell to myself.

No, I don't see this as "highway robbery" and "exorbitant" at all.

There are also gazillions of apps created by big companies that are free because they serve some company's purpose. For example banking apps, booking NHS appointments, booking flights or hotels and so on. Apple handles them all for free. And Apple distributes the app that I make my living with for free.

Your situation isn't everyone's situation though. Yes, 30% seems more reasonable if you're starting from scratch and don't want to set up all of that stuff yourself, but what about the businesses that already do business outside of the app store, that have their own marketing and payment processing, run their own servers, operate in different markets, etc? They may not have 30% in their margins to spare for a services bundle that they largely don't need.

If all you want is to be listed in the app store (because there's no other way onto people's phones) and some form of payment processing (because Apple doesn't let you use your own) for, say, a $5/month service that's runs on your own servers, then it absolutely is highway robbery.

 

[ArrayDecay]

I'm more interested in hearing what Zuckerface says.

 

[ajfahey]

Doesn't Tim have an innovative tech company to run into the ground?

 

[whsbuss]

The anti-Jobs man.... sad

 

[cpfoto2005]

Whereas, the 30% Apple charges the app devs, gives them a highly inflated extortion rate, just so that they can have the pleasure of doing business with you. If the cut were more reasonable and realistic, like 1 or 2%, or even a big fat 5%, then Apple wouldn't be under the microscope, but they got too greedy.

I’m certainly not trying to defend a rate of 30%, but I am sincerely curious how you calculated 1 or 2% to be “reasonable and realistic.”

 

[sideshowuniqueuser]

I’m certainly not trying to defend a rate of 30%, but I am sincerely curious how you calculated 1 or 2% to be “reasonable and realistic.”

Just going off what credit card companies charge shops every time a customer chooses to buy things on their credit card. Which similarly to Apple's app store, the business can't choose not to use it without wiping out access to a whole swathe of customers. Now sure, Apple provides a bit more than simply money exchange, so maybe 5% is more realistic. Regardless, the point wasn't the exact percentage, the point was that 30% is pure extortion and greed.

 

[PinkyMacGodess]

Watch it to be a drama filled meeting. I like that Apple has a lifeguard at the pool. Google Play has had a lot of Oops Moments. Should Apple make as much on their services? Should a pharmaceutical company make 2000%+ profit on drugs? They claim to price by the 'value to life'. If I lost my main apps, I would have a heck of a time surviving this life.

Apple has enemies. They will try to cut them down. Sad...

 

[cmaier]

Highway robbery? At 30%? Well the government takes up to 48% of my income in tax plus charges me additional 10% tax of goods and services and doesn’t provide me with any alternative by default.....

Just sideload your own interstate highways and army yourself!

 

[Wanted797]

How come no one from Microsoft?

I meant they were the embodiment of installing their own software and locking out others for decades?
So they have changed significantly since Bulmer left.
They needed to.

But you still have to wonder.

I don't entirely get this court case.
It's not like you buy an iPhone WITHOUT knowing Apple control the store, hardware and software.
If you don't like that, don't buy it. Simple. Your choice.

And if enough people didn't buy the products, they would change or go under.

That says most people are happy with the way Apple run it.

Same for Facebook, Google and Amazon.

You'd think the world has a enough REAL problems people could be spending time on...

As much as you have consumer choice you also do not.
When a company gets a monopoly and becomes a ‘standard’ it becomes a bit unfair for them to enforce their arbitrary rules.

These 4 companies have become close to essential services in modern society for communication, work and information. Saying ‘just don’t use them’ doesn’t work. That’s like saying just don’t use a telephone in the 70s/80s.

 

[cmaier]

As much as you have consumer choice you also do not.
When a company gets a monopoly and becomes a ‘standard’ it becomes a bit unfair for them to enforce their arbitrary rules.

These 4 companies have become close to essential services in modern society for communication, work and information. Saying ‘just don’t use them’ doesn’t work. That’s like saying just don’t use a telephone in the 70s/80s.

What does apple monopolize?

 

[Mt44]

I sincerely hope that the subcommittee has a solid plan in place and knows what they're doing.

Narrator: the subcommittee had no idea what it was doing.