© Unsplash/Medhat Dawoud
Since last January, Kevan Parekh is the brand new financial director Apple instead of Luca Maestri. The leader has a lot to do from the outset and had to answer embarrassing questions before a London court on Thursday, January 16. Let's take stock.
75 % profit margins for Apple on the App Store ?
It was therefore before the Competition Appeal Tribunal (CAT), a British court dealing with disputes related to competition law, that he intervened. In the context of an antitrust trial accusing the Apple brand of a dominant position on the applications market, the plaintiffs' lawyer, Michael Armitage, recalled that evidence cited in another American trial indicates operating margins for the App Store of more than 75%.
A figure corroborated by another accountant acting on behalf of the plaintiffs in the current case. “That rather suggests that these figures are accurate, doesn't it, Mr. Parekh ? “ To which the person concerned replied: “I wouldn't say they're accurate.”
Why ? “I think it's possible to estimate.” He adds that “it can't be estimated in a meaningful and precise way.”. He says Apple “cannot attribute all indirect costs to specific products or services. Any attempt to attribute these types of costs would involve imprecise and subjective judgments.”.
200% Deposit Bonus up to €3,000 180% First Deposit Bonus up to $20,000€1.75 billion claimed from Apple
In this case, Rachel Kent, a lecturer at King's College London, is acting on behalf of millions of British consumers. They accuse Apple of having a monopoly on this market and believe that the brand with the apple logo forces developers to distribute their applications on the App Store.
Apple is being sued for £1.5 billion, or around €1.75 billion, over ” excessive and unfair “ fees charged to developers that are then passed on to customers.
Apple is defending itself and boasting ” the enormous benefits that Apple's innovation brings to the iOS ecosystem as a whole “. Quoted by the Financial Times, the company's lawyers led by Marie Demetriou KC believe that Apple's ” single, fully integrated system “ is ” designed to protect users' security, privacy and safety, and provide a simple and intuitive user experience “.
The App Store's Hot File
As a reminder, and in order to comply with the Digital Markets Act, the European Union legislation dedicated to tech giants, the Apple brand has implemented several measures on the App Store, including the possibility for developers to propose competitors to its store on the iPhone. Tools have been deployed for this purpose. However, the battle is not over and the Cupertino firm's big rivals still believe that the score is not there.
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