Apple v. Epic: Phil Schiller says App Store’s 30% commission is still competitive

Apple Fellow Phil Schiller, a company executive who oversaw the marketing of its products for 30 years and was the late Steve Jobs’ right-hand man at multiple iPhone events, said he didn’t consider the smartphone market as a duopoly — as Epic’s economic experts repeatedly claimed.

Schiller outlined the history of the massive App Store under questioning from Apple lawyer Richard Doren during nearly five hours of testimony. Schiller offered a narrative on the success of the store, which is the center of Epic’s antitrust claims. “Is Apple’s 30% commission still competitive?” Apple lawyer Doren asked. “We believe it is, yes,” Schiller answered. He added that a program for small-business developers with less than $1 million in sales to pay 15% commissions was first discussed in 2016. The program went into effect last year in part because of the pandemic, and Google followed in similar fashion, Schiller said.

Epic spent most of the previous two weeks presenting its case that Apple’s App Store has abused its market dominance to unfairly charge developers a 30% commission fee while suppressing rival apps. Apple’s heavy-handed tactics amount to antitrust behavior, Epic’s lawyers and witnesses asserted.

That is not the story Apple gives investors when they tout their market share... Of course, he would say that in a courtroom when being sued.

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