Apple Inc. AAPL said Monday it does not want to be like Android, the competing mobile operating system owned by Alphabet Inc.’s GOOG GOOGL and that its rules for its App Store have created a vibrant ecosystem that benefits iPhone developers.
What Happened: Apple made the comments during the first day of a three-week landmark antitrust trial with “Fortnite” video game developer Epic Games Inc. over the rules of the App Store, CNBC reported.
“Epic wants us to be Android, but we don’t want to be. And our consumers don’t want that either,” Apple lawyer Karen Dunn was quoted as saying.
Epic reportedly accused the Tim Cook-led company of building a “walled garden” by luring developers and customers into iOS mobile operating system and then purposely locking them in, making it difficult for them to switch to Android or other platforms. The company alleged that Apple’s App Store is anti-competitive.
Apple argued that the iPhone operating system would be less secure and less reliable for consumers and developers if the tech giant did not have control of the ecosystem, as per the report.
The Cupertino-based company also said there is no anti-competitive conduct in the gaming market as users can switch to Android, Microsoft Corp.’s MSFT Xbox or Sony Group Corporation’s SONY PlayStation.
Why It Matters: Last August, Apple and Google parent Alphabet were taken to court by Epic Games after the “Fortnite” game was removed from the app stores run by the two technology companies. The removal came after Epic Games tried to bypass a 30% cut charged on in-game purchases by the two companies.
Apple and Google have been facing several allegations surrounding their app store policies, including fees for digital purchases. Apple has rejected third-party payment tools for in-app purchases.
In November last year, Apple slashed its App Store fee to 15% for small businesses earning up to $1 million per year. The move was replicated by Google in March this year. However, Apple’s move to cut commission for small developers was dismissed by Epic Games CEO Tim Sweeney as a move to stifle criticism.
Price Action: Apple shares closed 0.8% higher in Monday’s regular trading session at $132.54, but declined almost 0.2% in the after-hours session to $132.33.
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