This Monday begins an epic trial. Or should we say, the lawsuit between Epic Games and Apple begins this Monday. The latter threw Epic's popular Fortnite game out of the App Store after discovering that the developer allowed users to make payments through the app through Epic's own payment platform.
Epic Games claims Apple's App Store had 78% profit margins in 2019
Apple's app store makes business a safe for money
Despite Barnes' comments on getting the numbers from Apple and the files from Tim Cook, the company denies the accuracy of its calculations. Apple is also asking the court to order a strict lockdown against the public discussion of App Store profits. While an Apple employee told Barnes that the numbers he got from Apple don't show the whole story, he did the rest of the math himself to determine that the App Store had a 79,6% operating margin for 2018 and 2019.
To reiterate, Apple asked the court not to allow Epic to mention App Store financial data in the courtroom. Apple expressed concern that in doing so the data could "unduly confuse the securities markets and the participants in those markets, including the many pension funds, mutual funds and other mainstream investors who hold Apple shares ”.
Today, Apple released a statement that "Epic's calculations of App Store operating margins are simply wrong and we are eager to rebut them in court." App Store margins - and therefore App Store profits - reportedly continued to increase from 2019. Sensor Tower claims the App Store generated $ 22 billion in commissions for Apple last year , while Bernstein's Toni Sacconaghi claims the App Store has an 88% gross profit margin.
Apple executives say the company doesn't look at P / L numbers for individual units. Cook said in his pre-trial testimony that "Apple's business is not structured in such a way as to allow a person to push a button and get an income statement on the App Store." Apple's chief compliance officer Kyle Andeer said last month during a hearing before Congress: “When we look at the App Store, it's not a separate stand-alone business for us. It is a built-in feature of our devices. "
It is strange to see that the better the expected performance of the App Store, the more the company is considered anti-competitive.