Apple’s app store goes on trial in threat to ‘walled garden’ | The Business Standard
Skip to main content
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Saturday
May 31, 2025

Sign In
Subscribe
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
SATURDAY, MAY 31, 2025
Apple’s app store goes on trial in threat to ‘walled garden’

World+Biz

AP/UNB
03 May, 2021, 01:25 pm
Last modified: 03 May, 2021, 01:33 pm

Related News

  • Epic Games' Fortnite not available on iPhones in EU and the US
  • Apple blocks access to Fortnite in US, EU, Epic Games says
  • Apple considers raising iPhone prices, WSJ reports
  • Ganosamhati Andolon demands guarantee of AL's trial as a political party
  • Deposition in drug case against ex-Juba League leader Samrat begins

Apple’s app store goes on trial in threat to ‘walled garden’

Apple’s highly successful formula has helped turn the iPhone maker into one of the world’s most profitable companies, one with a market value that now tops $2.2 trillion

AP/UNB
03 May, 2021, 01:25 pm
Last modified: 03 May, 2021, 01:33 pm
Apple has 271 retail stores in the United States Photo: Reuters
Apple has 271 retail stores in the United States Photo: Reuters

On Monday, Apple faces one of its most serious legal threats in recent years: A trial that threatens to upend its iron control over its app store, which brings in billions of dollars each year while feeding more than 1.6 billion iPhones, iPads, and other devices.

The federal court case is being brought by Epic Games, maker of the popular video game Fortnite. Epic wants to topple the so-called "walled garden" of the app store, which Apple started building 13 years ago as part of a strategy masterminded by co-founder Steve Jobs.

Epic charges that Apple has transformed a once-tiny digital storefront into an illegal monopoly that squeezes mobile apps for a significant slice of their earnings. Apple takes a commission of 15% to 30% on purchases made within apps, including everything from digital items in games to subscriptions. Apple denies Epic's claims.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

Apple's highly successful formula has helped turn the iPhone maker into one of the world's most profitable companies, one with a market value that now tops $2.2 trillion.

Privately held Epic is puny by comparison, with an estimated market value of $30 billion. Its aspirations to get bigger hinge in part on its plan to offer an alternative app store on the iPhone. The North Carolina company also wants to break free of Apple's commissions. Epic says it forked over hundreds of millions of dollars to Apple before it expelled Fortnite from its app store last August, after Epic added a payment system that bypassed Apple.

Epic then sued Apple, prompting a courtroom drama that could shed new light on Apple's management of its app store. Both Apple CEO Tim Cook and Epic CEO Tim Sweeney will testify in a Oakland, California federal courtroom that will be set up to allow for social distancing and will require masks at all times.

Neither side wanted a jury trial, leaving the decision to U.S. District Judge Yvonne Gonzalez Rogers, who already seems to know her ruling will probably be appealed, given the stakes in the case.

Much of the evidence will revolve around arcane but crucial arguments about market definitions.

Epic contends the iPhone has become so ingrained in society that the device and its ecosystem have turned into a monopoly Apple can exploit to unfairly enrich itself and thwart competition.

Apple claims it faces significant competition from various alternatives to video games on iPhones. For instance, it points out that about 2 billion other smartphones don't run iPhone software or work with its app store — primarily those relying on Google's Android system. Epic has filed a separate case against Google, accusing it of illegally gouging apps through its own app store for Android devices.

Apple will also depict Epic as a desperate company hungry for sources of revenue beyond the aging Fortnite. It claims Epic merely wants to freeload off an iPhone ecosystem in which Apple has invested more than $100 billion over the past 15 years.

Estimates of Apple's app store revenue range from $15 billion to $18 billion annually. Apple disputes those estimates, although it hasn't publicly disclosed its own figures. Instead, it has emphasized that it doesn't collect a cent from 85% of the apps in its store.

The commissions it pockets, Apple says, are a reasonable way for the company to recoup its investment while financing an app review process it calls essential to preserving the security of apps and their users. About 40% of the roughly 100,000 apps submitted for review each week are rejected for some sort of problem, according to Kyle Andeer, Apple's chief compliance officer.

Epic will try to prove that Apple uses the security issue to disguise its true motivation — maintaining a monopoly that wrings more profits from app makers who can't afford not to be available on the iPhone.

But the smaller company may face an uphill battle. Last fall, the judge expressed some skepticism in court before denying Epic's request to reinstate Fortnite on Apple's app store pending the outcome of the trial. At that time, Gonzalez Rogers asserted that Epic's claims were "at the frontier edges of antitrust law."

The trial is expected to last most of May, with a decision to come in the ensuing weeks.

Apple / App store / Trial

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Chief Adviser Muhammad Yunus meets Japanese Prime Minister Ishiba Shigeru in Japan on 30 May 2025. Photo: CA Office
    Bangladesh, Japan to sign Economic Partnership Agreement by year-end
  • File photo of BNP BNP Standing Committee Member Amir Khasru Mahmud Chowdhury
    Speaking about country’s problems in foreign trips won’t solve them: Khasru takes jibe at Yunus
  • Representational image. Photo: Collected
    'Heavy to very heavy' rainfall expected across country as land depression weakens further

MOST VIEWED

  • Photo: Courtesy
    New notes featuring historic, archaeological structures of Bangladesh to be circulated from 1 June
  • Two Memoranda of Understanding were signed at the seminar titled “Bangladesh Seminar on Human Resources,” in Tokyo on 29 May 2025. Photo: CA Press Wing
    Japan to recruit 100,000 Bangladeshi workers over next 5 years
  • BAT Bangladesh has to vacate Mohakhali HQ as SC rejects lease appeal
    BAT Bangladesh has to vacate Mohakhali HQ as SC rejects lease appeal
  • Representational Photo: Collected
    Country's all jewellery shops to remain indefinitely closed in protest of VP Reponul's arrest: Bajus
  • Khondoker Rashed Maqsood. File Photo: Collected
    Investors urge removal of BSEC chairman in meeting with CA’s special assistant, submit list of demands
  • Illustration: TBS
    Bangladesh repays $3.5b foreign debt in 10 months of FY25

Related News

  • Epic Games' Fortnite not available on iPhones in EU and the US
  • Apple blocks access to Fortnite in US, EU, Epic Games says
  • Apple considers raising iPhone prices, WSJ reports
  • Ganosamhati Andolon demands guarantee of AL's trial as a political party
  • Deposition in drug case against ex-Juba League leader Samrat begins

Features

Babar Ali, Ikramul Hasan Shakil, and Wasfia Nazreen are leading a bold resurgence in Bangladeshi mountaineering, scaling eight-thousanders like Everest, Annapurna I, and K2. Photos: Collected

Back to 8000 metres: How Bangladesh’s mountaineers emerged from a decade-long pause

8h | Panorama
Photos: Courtesy

Behind the looks: Bangladeshi designers shaping celebrity fashion

10h | Mode
Photo collage of the sailors and their catch. Photos: Shahid Sarkar

Between sky and sea: The thrilling life afloat on a fishing ship

14h | Features
For hundreds of small fishermen living near this delicate area, sustainable fishing is a necessity for their survival. Photo: Syed Zakir Hossain

World Ocean Day: Bangladesh’s ‘Silent Island’ provides a fisheries model for the future

1d | The Big Picture

More Videos from TBS

Six Lakh Sacrificial Animals Ready in Sirajganj for Eid-ul-Adha

Six Lakh Sacrificial Animals Ready in Sirajganj for Eid-ul-Adha

4h | TBS Stories
Six MoUs signed during Chief Advisor's visit to Japan

Six MoUs signed during Chief Advisor's visit to Japan

8h | TBS Today
Record migrant deaths in 2024

Record migrant deaths in 2024

1d | Podcast
Govt likely to trim subsidies in new budget

Govt likely to trim subsidies in new budget

11h | TBS Insight
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net