Apple Exec Phil Schiller testifies that it has raised concerns about App Store supplies to online sales

Apple Phil SchillerThe executive power to guide the App Store testified on Monday that he had initially put concerns about the supply of 27%, the iPhone manufacturer was planning to charge application developers in any markets outside the App Store. In addition to being a potential risk of compliance, he suggested that the fee would create a “competitive relationship” between Apple and developers and seemed to require Apple to have control rights to check whether or not they owe Apple’s money for Transactions that took place outside the app store.

Apple usually charges a 30% commission for in-application markets, but the reduced 27% fee was the result of the Epic Games -aple decision. In 2021, the court found that although the technological giant was not a monopoly, it would have to stop preventing applications from connecting to other ways for customers to pay beyond Apple (IAP) markets.

Apple technically complies with the decision by changing the App Store instructions to allow developers to connect to their websites From iOS and iPados applications to give customers an alternative way to pay.

However, Apple only reduced its supply by 3% for these markets.

At that time, CEO of Fortnite Maker Epic Games, Tim Sweeney, called on Apple for “bad faith” compliance, saying that the technology company undermined the order of 2021 by US judge Yvonne Gonzalez Rogers, which had granted the developers to the developers the right to add buttons or links for other market mechanisms other than Apple’s IAP.

Apple and the epic games have returned to the federal court since then, so Rogers could determine if Apple has violated its original order that forced the app store to open more competition.

According to Schiller’s testimony, he initially opposed supplies for these external markets.

“… I had great concerns about the capital collections by developers,” he said, in particular “changing the role of the application store to now an organization that has to raise money from developers.”

He said he is worried about how the app should go ahead with developers who do not pay supplies, making it “some kind of collection agency” that had “rules on how to handle the non -payment and if it does mean” we will ” You need to check the developers. ”

Schiller said he was worried about how all these things change the relationship between Apple and developers in a way I thought would be harmful. “

The listening has revealed the extensive procedure submitted by Apple, while discussing the benefits of remuneration. With the hosts of the documents and emails, the lawyers describe in detail the back-and-forth interior in Apple, as the executives weighed different options for complying with the court order.

Despite the initial concerns raised by Schiller, a pricing committee that included Apple Tim Cook CEO, former CFO Luca Maestri, and Apple’s legal team, along with Schiller, finally decided to charge the developers in a commission for these external markets.

The company also decided that the same 3% reduction would apply to developers in the small business program, reducing their already reduced supply by 15% to 12% for transactions outside the App Store.

The documents referred to in court said Apple analyzed the financial impact on developers who have chosen to connect with their own websites.

In a model, for example, Apple worked to determine how the “less seamless experience” of using a non-IP method would lead customers to abandon their transactions. With modeling where this subversion was, Apple was able to determine when the links would stop being an advantage for developers, which would push them back to IAP use.

Apple also found that more restrictive rules around the installation and formatting of the links themselves could reduce the number of applications that have decided to apply these external links. The company examined the financial impact of the exemption of some other partners – as well as video and news programs – from the new program.

The company weighed different options for when it would charge and supplies. Once, he thought of charging the 27% fee for external markets that took place within 72 hours of the link click. When The new instructions were made alive, However, this time frame was stretched in seven days.

Lawyers suggested himself dealing with the way in which the App Store customers will appear, suggesting an update in the text that appears when external links were clicked. In one version, the link warned customers that “they were no longer dealing with Apple”. Later, the Association was informed to indicate in a delicate way that there could be risks to protect privacy or security with the markets on the web.

At another meeting on committees, people had also expressed concerns about Apple’s billing on web transactions.

“This can be perceived as we try to charge what is happening on the internet,” one of the notes from the meeting said.