Microsoft President Met With U.S. Antitrust Committee Investigating Apple and Expressed Concerns Over App Store

Apple CEO Tim Cook, Amazon CEO Jeff Bezos, Alphabet/Google CEO Sundar Pichai, and Facebook CEO Mark Zuckerberg are all set to participate in an antitrust hearing next Monday held by the United States House Judiciary Antitrust Subcommittee as part of an ongoing antitrust investigation on competition in digital markets.

appstore
Ahead of the hearing, the committee spoke with Microsoft president and chief legal officer Brad Smith, with The Information sharing details on the virtual meeting.

The committee wanted to talk with Smith so he could "provide Microsoft's perspective as a big tech company" formerly involved in antitrust regulation over Windows, but Smith also reportedly shared Microsoft's concerns with the way Apple operates the App Store.

Topics covered included Apple's arbitrary ‌App Store‌ approval processes, the 30 percent cut that Apple takes from app purchases and subscriptions, and requirements that developers use Apple's in-app purchase system.

At a Politico event in June, Smith expressed similar sentiments and said that it's time for regulators to take a look at app stores and the payment requirements.

"They impose requirements that increasingly say there is only one way to get on to our platform and that is to go through the gate that we ourselves have created. In some cases they create a very high price per toll - in some cases 30% of your revenue has to go to the toll keeper."

"The time has come - whether we are talking about D.C. or Brussels - for a much more focused conversation about the nature of app stores, the rules that are being put in place, the prices and the tolls that are being extracted and whether there is really a justification in antitrust law for everything that has been created."

Microsoft distributes multiple apps in Apple's ‌App Store‌, and is required to pay Apple 15 to 30 percent for any customers who subscribe to its Office 365 service through Apple's platform.

‌Tim Cook‌ and other tech CEOS will testify in the antitrust hearing on Monday, July 27 at 12:00 p.m. Eastern Time, and a livestream will be available on YouTube.

Top Rated Comments

neilah1 Avatar
47 months ago
I guess Brad forgot about the Xbox Live E-commerce store they run where Microsoft takes 30% of a game publisher’s Xbox App Store revenues.
Score: 33 Votes (Like | Disagree)
edgonzalez32 Avatar
47 months ago

Wah. Wah. Wah.

Microsoft crying because they don’t have a product that can compete with the iPhone is hilarious.

I get it, Microsoft is in a position of wanting to increase profits by reducing payments to vendors. I wonder how the App Store compares to the cost Microsoft would pay for Apple to carry office in the Apple stores, along with payment for wall placement.

Which was absolutely a thing, company reps (not MS) would come into my Apple store and make sure their products were on the shelves in the places they paid for.
Jfc. I know it’s unbelievably easy to dump on Microsoft on an apple related site. But you just come off as insecure. I’m so tired of this constant ******** on Microsoft around here. It leads to zero discussion.

Microsoft isn’t complaining about competing with the iPhone. As far as anyone can tell, they have zero interest in that. Instead, they’ve positioned themselves as more of a services company more than anything. And it’s smart. The duo looks like a legit awesome device that I’m sure is going to do pretty good in the corporate space. And there’s nothing wrong with that.

the issue here is the App Store. It’s the same problems that come up time and time again. Between the 30% cut, the fact that developers can’t put a CTA that says “go here to sign up” (say what you want, THATS a crap UX issue that shows up because of Apple).

I don’t even know why I’m bothering typing this out. You’re probably going to make some half assed comment ******** on Microsoft because you don’t like them

Ya'll disagreeing and can't even come up with a reason why right? Thank you for proving my point even more.
Score: 26 Votes (Like | Disagree)
AtomicDusk Avatar
47 months ago
Wah. Wah. Wah.

Microsoft crying because they don’t have a product that can compete with the iPhone is hilarious.

I get it, Microsoft is in a position of wanting to increase profits by reducing payments to vendors. I wonder how the App Store compares to the cost Microsoft would pay for Apple to carry office in the Apple stores, along with payment for wall placement.

Which was absolutely a thing, company reps (not MS) would come into my Apple store and make sure their products were on the shelves in the places they paid for.
Score: 22 Votes (Like | Disagree)
edgonzalez32 Avatar
47 months ago

Windows, Word, Excel has MONOPOLY in all companies! But I guess it wasn't on the agenda.
How? We use gsuite at work.
Score: 21 Votes (Like | Disagree)
ArtOfWarfare Avatar
47 months ago

Windows, Word, Excel has MONOPOLY in all companies! But I guess it wasn't on the agenda.
Uh, no. There’s endless piles of versions of Linux you could use, or macOS - you’re not forced to use Windows at all.

As for Microsoft Office, you could instead use Google’s programs, or iWork, or OpenOffice, or LibreOffice, or there’s tons of other smaller Office competitors.
Score: 18 Votes (Like | Disagree)
iBluetooth Avatar
47 months ago
Windows, Word, Excel has MONOPOLY in all companies! But I guess it wasn't on the agenda.
Score: 17 Votes (Like | Disagree)

Popular Stories

Beyond iPhone 13 Better Blue Face ID Single Camera Hole

Six Reasons to Wait for Next Year's iPhone 17

Thursday February 22, 2024 4:20 am PST by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models concurrently, which is why we sometimes get rumored feature leaks so far ahead of launch. The iPhone 17 series is no different, and already we have some idea of what to expect from Apple's 2025 smartphone lineup. If you plan to skip...
iPhone Notch

Apple Explored These Notch and Dynamic Island Designs for iPhones

Friday February 23, 2024 2:05 pm PST by
With the iPhone 14 Pro models in 2022, Apple introduced the Dynamic Island, which can morph and expand to display system alerts, sports scores, and a variety of other information. The feature makes the space surrounding the front camera and Face ID sensors useful compared to the notch on older iPhone models. Apple explored a variety of ideas for the iPhone's notch area over the years before...
General Apps Messages

Apple Announces 'Groundbreaking' New Security Protocol for iMessage

Wednesday February 21, 2024 6:00 am PST by
Apple today announced a new post-quantum cryptographic protocol for iMessage called PQ3. Apple says this "groundbreaking" and "state-of-the-art" protocol provides "extensive defenses against even highly sophisticated quantum attacks." Apple believes the PQ3 protocol's protections "surpass those in all other widely deployed messaging apps," according to its blog post:Today we are announcing...
Next Generation CarPlay Porsche 1

Apple Launching Next-Generation CarPlay This Year With These New Features

Wednesday February 21, 2024 2:03 pm PST by
Apple recently updated its website to confirm that the first vehicle models with next-generation CarPlay support will debut "in 2024." This wording is shown on Apple's regional websites for the U.S., Canada, Australia, New Zealand, and many other countries. The iOS 17.4 beta includes code-level references to eight new CarPlay apps:Auto Settings: This app will let you manage paired iPhones...
cracked glass vision pro

Handful of Apple Vision Pro Units Develop Identical Crack in Cover Glass

Friday February 23, 2024 4:46 am PST by
A small number of Apple Vision Pro owners have claimed that their headsets developed a hairline crack down the middle of the front cover glass, despite having never been dropped or mishandled. Photo of hairline crack in Vision Pro front glass (credit: Reddit user Inphenite) The first report was posted in the subreddit /r/VisionPro about 18 days ago, and several more have appeared in the last...
iOS 17

iOS 17.4 Will Add These New Features to Your iPhone

Monday February 19, 2024 6:52 am PST by
Apple last month confirmed that iOS 17.4 will be released in March, and the update includes several new features and changes for the iPhone. Key new features in iOS 17.4 include major App Store changes in the EU and Apple Podcasts transcripts. The update also adds new emoji and includes preparations for the launch of next-generation CarPlay later this year. More details about the new...
Oled iPads and MackBook Pro Notch

Apple's OLED Roadmap: New iPad Mini, Foldable iPad Pro, and More

Wednesday February 21, 2024 5:29 am PST by
Apple is planning to launch at least nine new devices with OLED displays across the iPad and MacBook product lines, according to an updated forecast from research firm Omdia that sets out the company's plans in detail. As widely rumored, Apple's push to transition to OLED will apparently be jump-started by the release of new 11- and 13-inch iPad Pro models this year. The displays will...
New Macs iPads iOS 17 4

What to Expect at Potential Apple Event in March: iPads, Macs, and More

Friday February 23, 2024 8:35 am PST by
Apple often holds its first media event of the year in March, so the company could be just weeks away from announcing new products. Below, we have outlined what to expect from a potential Apple Event this March. Past Apple Events in March Apple has held five events in March since 2015:Monday, March 9, 2015 Monday, March 21, 2016 Tuesday, March 27, 2018 Monday, March 25, 2019 Tuesday,...