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On Monday, May 3 Apple and Epic will meet in court as their bench trial kicks off over the dispute that Epic started last summer by defying the App Store in-app purchase rules.

fortnite_apple_featured.jpg

In preparation for the legal battle, Apple today filed the written testimonies of its witnesses with the court, and if approved, it serves the same function as actual trial testimony, providing insight into the arguments that Apple will make. The expert testimony includes several professors with expertise in law, economics, marketing, computer security, and antitrust.

The witnesses will rebut claims made by Epic's witnesses, and will argue the merits of the App Store rules and policies for consumers. University of Pennsylvania Professor in Operations, Information and Decisions Lorin Hitt, for example, calculated Apple's digital game transaction market share to argue that Apple doesn't have a monopoly and to point out that Apple's fees are the same as other game transaction platforms.
My market share calculations support the conclusion that Apple does not have market or monopoly power in a properly defined market. Apple's share of the digital game transaction market lies between 23.3% and 37.5%. In light of my conservative approach, these market share estimates, especially at the high end, are likely to overstate Apple's true market share and are, in any event, inconsistent with Apple having substantial market power. The entry of new game transaction platforms is also inconsistent with Apple having market power.
University of Michigan Professor of Economics Dean Francine Lafontaine points to Safari as an alternative to in-app purchases that some developers use, though it's worth noting that Apple does not generally allow developers to advertise payment methods outside of the App Store, so developers like Epic would need to make customers aware of the option outside of the app.
Even the rare consumer who has access to only an iOS device has a readily available game transaction alternative to the App Store--the Safari browser. For example, any Fortnite player can use Safari (or Chrome) to purchase Fortnite's in-game currency, 'V-Bucks,' a transaction that generates no commission for Apple.
A survey conducted by UCLA Professor of Marketing Dominique Hanssens argues that Apple does not have a monopoly in the gaming market because most iPhone and iPad users regularly use other devices that can access digital gaming content like consoles.
Results of my first survey show that 92 percent of respondents who downloaded apps from the App Store had regularly used at least one other type of device (i.e., devices other than iPhones and iPads) with which they could access digital gaming content, in the last 12 months. Further, 99 percent of respondents in the first survey had regularly used or could have regularly used at least one other type of device (i.e., devices other than iPhones and iPads) with which they could access digital gaming content, in the last 12 months.
On the topic of security, Johns Hopkins University Information Security Institute technical director Aviel Rubin will cover the importance of the App Store review process when it comes to security. Epic will likely argue that the App Store is not as secure as Apple says it is, pointing to scam apps and malware that slip through the review process as it aims to convince the court that third-party app distribution methods are needed.
The introduction of third-party app stores for iOS would decrease iOS security, safety, and trustworthiness, as evidenced by the cases of Google and statistics indicating that third- party app stores host 99.9% of discovered mobile malware... Irrespective of whether they would be able to or intend to achieve the same security goals, the reality is that they could not. Moreover, there is no guarantee that all, or even most, third-party app stores would commit to upholding user security and privacy and intend to achieve such security goals, particularly if those standards come at the expense of efficiency and revenue.
The filings are limited to Apple's expert witnesses and do not include topics that will be covered by Apple executives during the trial. Apple CEO Tim Cook, Apple Fellow Phil Schiller, and Apple software engineering chief Craig Federighi will all testify in person in the Northern California court.

Epic will likely share its own expert witness testimony at some point ahead of when the trial begins. Epic also has an interesting witness list, which will include Epic Games CEO Tim Sweeney and other Epic employees along with iTunes chief Eddy Cue and former iOS software chief Scott Forstall. Both companies will also call executives from other companies like Facebook and Microsoft.

Apple's witness statements are below for those who would like to see them in their entirety to get a better idea of how Apple plans to defend itself against Epic next week.



Article Link: Apple Files Expert Witness Testimony Ahead of Upcoming Trial With Epic
 
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Can’t really argue with the point that epics customers could go online a make purchases. Isn’t that what Spotify customers do? Last time I ordered something from Amazon, I didn’t see vendors advertising their own web stores. Although I used to find products on Amazon, then buy them direct from sellers so I didn’t have to pay Amazon tax. Then I got burned Amazon policies are way better. Now I go the Amazon route

same thing. If Amazon can do it, so can other companies
 
I don’t like the term “witness” for the experts on both sides. They are essentially paid hacks who will say whatever you pay them to say.
You could restructure the legal profession. There was an expert witness recently who testified that use of murder was justifiable force. So you are right. There are sometimes opposing legitimate points of view based on FACTS. It seems the witness did a good job popping the market power myth an the no alternative purchase Avenue myth
 
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"The witnesses will rebut claims made by Epic's witnesses, and will argue the merits of the ‌App Store‌ rules and policies for consumers Apple"
 
"The witnesses will rebut claims made by Epic's witnesses, and will argue the merits of the ‌App Store‌ rules and policies for consumers Apple"

It should be: "The witnesses will rebut claims made by Epic's witnesses, and will argue the merits of the ‌App Store‌ rules and policies for small and medium sized developers and their customers.". Only Epic and a few other huge multibillion dollar companies win if Apple lose this for us.
 
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Hot take:
There’s no guaranteed right to the App Store. If you want to buy vbucks with your iPhone, you can open safari, go to their website, and purchase them there. Even if iOS is your only gaming device, you have access to vbucks.

Not everything needs a discreet app.
 
Netflix does just fine without any in-app purchases, and without paying any money to Apple. Well, except $99 a year for the development tools, and they probably have a support contract to pay for support from Apple.
Netflix also restricts TV shows and Movies by region not to mention certain functionality - recall that Broken Mirror episode that was supposed to be a modern day Choose Your Own Adventure with clicks on the remote? Apple TV not supported - the ONLY device that wasn't supported.

Streaming models done really add more value with incentive's for in-app/service payments before the initial monthly service fee.

we shall see what comes next though.
 
Not a monopoly because they only have 23-37% market share?
They have 100% share of their platform.
I’m surprised by how many people here support Apple and deny EPIC.
End of the day, how many small companies and developers have been wiped off the planet because Apple decided unilaterally they no longer fit their needs because of duplication of services or etc. This isn’t clean cut. Gone are the days of buying a title and owning it forever. We are all renting everything. Planned obsolescence is assured with Apple’s current systems.
 
Not a monopoly because they only have 23-37% market share?
They have 100% share of their platform.
I’m surprised by how many people here support Apple and deny EPIC.
End of the day, how many small companies and developers have been wiped off the planet because Apple decided unilaterally they no longer fit their needs because of duplication of services or etc. This isn’t clean cut. Gone are the days of buying a title and owning it forever. We are all renting everything. Planned obsolescence is assured with Apple’s current systems.

The problem isn't that Apple chose to get rid of them, they chose to ignore Apple's policy for using their services and refused to negotiate a deal. They wanted to collect all of the profits of in-app purchases without paying anything to the service that made it possible. Sorry, Epic is in the wrong here.
 
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Not a monopoly because they only have 23-37% market share?
They have 100% share of their platform.
I’m surprised by how many people here support Apple and deny EPIC.
End of the day, how many small companies and developers have been wiped off the planet because Apple decided unilaterally they no longer fit their needs because of duplication of services or etc. This isn’t clean cut. Gone are the days of buying a title and owning it forever. We are all renting everything. Planned obsolescence is assured with Apple’s current systems.

Apple has a 100% share of their platform even if they sold just one iPhone. It’s kinda their whole selling point and shocker - many people don’t actually dislike the walled garden and the benefits it offers. That’s why Apple is as rich as it is - because it provides great experiences that we users are more than willing to pay a premium for.

I support the App Store for the same reason that I buy and own so many Apple products - I love the user experience that it enables.

So why would I be in favour of a judgement that would make a product worse to use for myself?
 
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If you are in my home I’d expect you to follow my rules and show some respect. If you feel it’s too difficult to do that you can either get out or don’t come in. It’s simple as hell.
 
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