Apple said it plans to fight antitrust allegations from “Fortnight” maker Epic Games by arguing that customers have an abundance of choices when it comes to where they get their video games. Joe Lonsdale, 8VC founding partner and Palantir co-founder, joined “Squawk Box” on Thursday to discuss. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi
On Wednesday, Apple and Epic Games laid out in separate dueling legal filings what they consider to be the key facts and main legal issues ahead of an antitrust trial that’s scheduled to start in May.
Apple and Epic Games, best known for its game Fortnite, have been in a legal battle since last year after Epic Games tried to avoid Apple’s 30% App Store fee through a server software update that skirted past Apple’s App Store payments system. Apple responded by removing Fortnite from its App Store, effectively preventing iPhone users from playing the game.
Top executives from both companies are expected to testify in-person in federal court in Oakland, California in a trial that is expected to last weeks.
Apple executives including Apple CEO Tim Cook, Apple software SVP Craig Federighi, and former marketing head Phil Schiller may testify, according to court filings. Epic Games CEO and founder Tim Sweeney is also on the trial witness list.
The late-night filings from each company are lengthy and packed with detail. Below you can find a bulleted summary of how each company will plan to make its case in court:
Apple will argue that:
Its 30% commission is essentially the same as other online software stores like Google Play or stores for video game consoles and Apple’s fee has decreased over time.
It faces competition both for iPhones as well as other platforms to play games.
Its App Store policies have led to a boom in the software industry and result in greater safety and security for users.
The App Store is a core, integrated feature of the iPhone, and that using Apple payments for digital purchases is a key feature.
Epic will argue that:
Apple forces consumers to bear high switching costs to stop using Apple products, locking them in.
As Apple has accumulated more customers and locked them in, the importance of selling software to Apple customers has grown.
Apple controls the only way to install software on an iPhone through the App Store.
Apple uses its App Review process, which manually screens individual apps, for anti-competitive purposes, removing apps for business reasons under the pretext of security.
Because some developers have chosen to raise iPhone software prices because of Apple’s 30% fee, it causes consumers to pay more, and Fortnite is an example.
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic
Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.
The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast
Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
Shouldn't he be looking at the camera
0:27
von.fyi
0:20
vom.lol
Platforms are not made to please you dude. Your a angel investor go invest and have someone build your own platform if you disagree with FB or Apple. I love how these VC's want to disrupt but want the government to take down the bigger companies so they can do so. You don't have to use google search or facebook. Remember how myspace was the dominate social media and then came facebook and took all of myspace's users? Yeah it can happen if your platform is good enough.