May 22 (Reuters) - Apple ( AAPL ) executive Phil Schiller fielded
hours of questions from lawyers and a California federal judge
on Wednesday, as the company battles claims that it violated an
order to allow more competition in its lucrative App Store.
It was Schiller's second day of testimony at the court
hearing in Oakland, where "Fortnite" maker Epic Games has asked
U.S. District Judge Yvonne Gonzalez Rogers to hold Apple ( AAPL ) in
contempt.
The judge convened the hearing to assess Apple's ( AAPL ) compliance
with her 2021 injunction, which required the Cupertino,
California-based company to allow developers more power to steer
app users to payment options outside of Apple's ( AAPL ) ecosystem.
In most instances, Apple ( AAPL ) charges developers a 30% commission
on users' purchases inside an app. Following Rogers' injunction,
it began allowing developers to include links to outside payment
options, but developers are still required to pay a commission
of 27% on such purchases.
Schiller and other executives have said the new policy,
which Epic cited as evidence of Apple's ( AAPL ) non-compliance, was a
legal, legitimate business decision.
"We're now competing to encourage developers to use our
payment system," Schiller said in court on Wednesday. He said
the company had worked hard following the 2021 injunction to
develop its new program.
"We have an interest with the court to get this accepted and
adopted," Schiller said.
Epic declined to comment on the hearing, and Apple ( AAPL ) did not
immediately respond to a similar request.
Rogers, over four days of hearings, has expressed skepticism
with some of Apple's ( AAPL ) arguments. She has questioned how the
iPhone maker came up with the new fee and asked what purpose
some of its App Store policies serve "other than to stifle
competition."
The judge, who could order additional changes to the App
Store, has not said when she will rule. The court will continue
hearing testimony on May 31.
Epic first sued Apple ( AAPL ) in 2020, claiming Apple's ( AAPL ) tight
controls over its App Store violated antitrust law. Determining
Apple's ( AAPL ) compliance with Rogers' injunction is all that remains
from the lawsuit, after the U.S. Supreme Court declined to
consider the case earlier this year.
The U.S. Justice Department in March accused Apple ( AAPL ) of
monopolizing the smartphone market, stifling competition and
innovation. The company has denied the claims and said in a
court filing on Tuesday it will ask a judge to dismiss the
lawsuit.
The case is Epic Games v. Apple ( AAPL ), U.S. District Court,
Northern District of California, No. 4:20-cv-05640.
For Epic: Gary Bornstein of Cravath, Swaine & Moore
For Apple ( AAPL ): Mark Perry of Weil, Gotshal & Manges
Read more:
Apple ( AAPL ) faces skeptical judge in App Store antitrust case
Apple ( AAPL ) denies violating US court order in Epic Games lawsuit
Epic Games says Apple ( AAPL ) violated App Store injunction, seeks
contempt order