Original title: Cook testified in Epic lawsuit: AppleNo dominant smartphone market source: Sina Technology

According to reports,Judge Yvon Gonzalez Rogers (Yvonne Gonzalez Rogers) asked Cook some tough questions when Apple's CEOTim Cook (Tim Cook) testified last night in the case of Epic Games v. Apple.These questions give us a general idea of some of Rogers' thoughts on the case. Last year, Apple and Epic Games were embroiled in a legal battle. The reason is that Epic Games is trying to bypass Apple's App Store payment system through a server software update, thereby circumventing Apple's 30 per cent share of revenue.

In response, Apple removed the game Fortnite from its app store, effectively preventing Apple users from using the game.

Epic Games believes that Apple controls the only way iPhone installs software through App Store. In addition, Apple charges a 30 per cent share of revenue, leading some developers to raise the price of iPhone software, eventually causing consumers to pay more.

During the trial last night, Rogers asked Cook what was wrong with allowing iPhone users to choose lower fees, especially when it comes to games. Cook replied that users can choose between iPhone or Android devices.

Rogers then asked Cook if there was a problem or difficulty in providing information to users to get the same App, through the Web browser to bypass Apple's 30 per cent revenue share.

Clearly, this is a compromise that allows companies like Epic Games to connect users to Web browsers for transactions, rather than forcing users to use Apple's in-app buying mechanism.

"the gaming industry seems to bring disproportionate income to the IP, Apple provides to them and everyone else," Rogers said. In essence, it's almost like they're subsidizing everyone else. "

Cook said Apple faces fierce competition for developers and users. Rogers retorted: "however, in terms of in-app purchases, you have no competitors."

In addition, Rogers is skeptical about Apple's "small business plan" (Small Business Program). The plan halves App Store fees for small developers, but Rogers believes Apple's move is caused by pressure from investigations and lawsuits, not really for the benefit of small businesses.

Cook retorted that given the difficulties faced by small developers during the COVID-19 epidemic, Apple launched the plan entirely for the sake of these small businesses.

Rogers also said she saw a survey showing that 39 per cent of Apple developers were dissatisfied with App Store. "it seems to me that you don't feel any pressure or competition to really change the way Apple addresses the concerns of developers," Rogers said. "

Cook disagreed with Rogers, saying that Apple had "completely changed the situation of developers."

This is the first time that Cook has testified in the case. The three-week trial ends on Monday, but Rogers said it could take weeks or months for her to make a decision. In addition, after that, her ruling may also be appealed by the two companies.

Apple faces fierce competition in the mobile phone market

Before being questioned by Rogers, Mr Cook testified last night that Apple faced fierce competition in the smartphone market. In the US, iPhone has a market share of just over 30 per cent, says Mr Cook. Internationally, iPhone's market share is about 15 per cent.

The figures cited by Cook are intended to prove that Apple does not dominate the smartphone market. "there are a lot of different mobile phone competitors, and the competition is very fierce," Cook said. "

It should be noted, however, that the US market share data cited by Cook was lower than some outsiders had expected. For example, Counterpoint Research, a research company, said in a recent report that since 2019, the proportion has been between 40 and 65 per cent, depending on the quarter.

Apple also argues that its control of App Store is critical to the security and privacy it promises to users and is an important personalized feature that distinguishes it from its competitors. It is well known that, App Store is the only way for users to install software on iPhone.

Cook testified that if we did what Epic Games said, "we will no longer be able to make privacy and security commitments." Cook said that without Apple's rules and policies, the Apple App Store would be a "toxic mess".

Epic Games, on the other hand, argues that security is an excuse to charge fees and control the behavior of software developers, and that Apple can safely open its platform to rival app stores.

Last night, Cook mentioned that Samsung, vivo, OPPO, Huawei and Google are Apple's competitors in the mobile phone market, all of which use GoogleAndroid (Android). He said Apple also faces competition from other app stores, including Google Play, and MicrosoftXbox and SonyPlayStation and other game consoles.

When questioned by Epic Games lawyers, Cook declined to answer questions about whether Apple's iPhone competes with GoogleAndroid in the operating system market.

"what the customer buys is not the operating system, but the device," Cook said. " Cook also said Apple used the survey to track whether iPhone users switched to Android devices. "trying to get Android users to iPhone, is a very important task for us," he said. "

Cook also believes that the move by Fortnite, Epic Games's shooter game, to bypass Apple's in-app purchases is malicious.

Avoid the problem of App Store profit and Google cooperation

Much of Mr Cook's testimony last night revolved around a private internal Apple document describing profit trends across Apple's divisions, including App Store. Epic Games's lawyer said the document showed that Apple's App Store was very profitable and tried to support its argument that Apple used its control to boost its profits.

Cook said the document did not include all the fees Apple spent on the App Store. He said he had a "sense" of App Store's profitability, but did not provide specific figures. An accountant previously hired by Epic Games testified that Apple had an operating profit margin of 77.8 per cent in 2019.

Epic Games's lawyer also asked Cook about Apple's agreement with Google that Google would become the default search engine for Apple's mobile browser. A congressional report quoted US media reports as saying that the deal generated $10 billion a year. Cook said he didn't remember how much Google paid.

In addition, Cook was questioned by Apple's lawyer about iMessage. IMessage is a messaging app built into Apple's iPhone and is unique to Apple products. Cook said the lack of iMessage on Android will not prevent iPhone users from switching to Android devices.

For users, the transition from iPhone to Android devices may miss iMessage messages. Google dismissed the concern, saying, "you can easily turn off your iMessage."