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Brian Fung | @[email protected] @b_fung
Epic alleges that Apple’s strategy is to “scare the court” and to say “‘this is so complicated, this is going to be on Your Honor’s desk for 20 years.’" — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
Epic cites the landmark Microsoft antitrust case, to which Apple responds that that was a government case, not private litigation, and that the outcome was behavioral restrictions, not “enforced sharing" — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
“Courts do not run businesses,” Judge Gonzalez Rogers says. — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
The judge is rhetorically challenging Epic to cite an example of a court ordering a company to “change the business model” in response to an antitrust violation. She seems to believe that’s basically what Epic is asking for and that there may be little precedent for it. — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
Apple responds that Epic wants to put its own app store on the Apple app store. And as a result, Apple would receive no revenue from transactions on Epic’s-store-on-Apple. And "Apple would not be able to conduct a meaningful review of what was in [Epic’s] store." — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
Epic’s lawyer is showing a slide of proposed remedies: https://t.co/d6ZDwRq626 https://t.co/lFtXquGm8Y https://t.co/y6INreP9U1 — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
The judge is moving on to discuss remedies, and says to Epic: "I still don’t understand where you expect this to go.” Epic says the issue is Apple’s terms, so “we believe the right thing to do is to get rid of those particular anticompetitive restrictions." — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
We’re getting ready to resume. — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
We’re in a 15 minute break. — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
Epic concedes that users may switch platforms at the margins, particularly by price-sensitive consumers, but says that it in no way undercuts Epic’s overall argument about Apple’s abuse of market power in iOS app distribution. — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
As a reminder of how we got here, Epic last year communicated to Fortnite players within the iOS app that they could get V-bucks for cheaper by buying directly through Epic rather than through Apple. — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
Apple responds that developers are free to send emails to their customers as long as the users have consented and “as long as it is not a targeted solicitation based on account registration within the app.” — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
*How* a developer obtains a user’s email address can also, under Apple’s rules, determine whether the developer can tell the user about other payment alternatives, Epic claims. Epic’s interpretation is that emails obtained via account registration through the app are ineligible. — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
Apple claims that allowing this behavior would be like Nordstrom allowing a sign at checkout advising customers that they can buy the same product for cheaper at Macy’s. Why not just say “more options available online?” the judge asks. Same reasoning, Apple says. — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
We’re now deep in a discussion about Apple’s anti-steering provisions, its prohibition on app developers telling app users within the app about alternative payment channels. — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
@byedolly As I understand it, Epic’s argument is that Apple’s rates would be even lower in a but-for world. — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
Apple responds that anybody who wants the ability to sideload apps or gain access to third-party app stores "is free to go out and buy an Android device.” — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
The judge challenges Epic to state what anticompetitive effects have resulted from Apple’s conduct. Epic claims Apple’s practices have led to higher prices and less innovation in iOS app distribution than would otherwise be the case. — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
Epic responds that statements of overall satisfaction mask dissatisfaction with more specific aspects of the Apple-developer relationship, and contests Apple’s claims that its pro-competitive moves on commissions were the result of competition. — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
Apple also making the case that it is highly responsive to developer feedback, and that it has reduced commissions several times since the launch of the app store. — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
The implication is that Epic is part of a small minority and that there is no problem here. — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
The same trend bore out in a similar survey conducted the following year, Apple says, where 65% of devs were satisfied and 19% not satisfied. — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
We’re now turning to a review of developer satisfaction from 2017. Apple says that only a minority of developers surveyed reported being dissatisfied. — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
Epic has failed to define a market for this case, Apple argues — and on that front, Judge Gonzalez Rogers seems fairly sympathetic to Apple’s position right now. — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
Practically speaking, would that be really limiting, in that only a subset of Apple users are based in California? Or would it be far-reaching, as many app developers subject to Apple’s store rules are based in California? — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
The prospect that Apple could be ordered to change its ways only in California and nowhere else would be… interesting. — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
Some back and forth now over the degree of Apple’s legal exposure stemming from federal antitrust law versus California’s Unfair Competition Law. — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
Now the judge is discussing the hypothetical of her finding that the market is gaming generally. “If I decide the relevant market is gaming, there is not a monopoly but there are other factors showing anticompetitive conduct." — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
Judge Gonzalez Rogers speculates that perhaps the market could be mobile gaming. Epic says that is “not the market we have advocated for” but that it would still make more sense than Apple’s proposed market of “game transactions." — PolitiTweet.org
Brian Fung | @[email protected] @b_fung
Judge Gonzalez Rogers is on product quality now, pointing out that there’s been tremendous innovation on the iPhone that’s benefited game developers. Epic responds that there has not been innovation on the app store specifically, where Apple allegedly lacks incentives. — PolitiTweet.org
