Apple CEO Tim Cook Likens Competition for Attracting Developers to a 'Street Fight for Market Share' in Smartphone Business

Apple CEO Tim Cook is today testifying in an antitrust hearing with the U.S. House Judiciary Antitrust Subcommittee, where he was questioned about Apple's App Store policies.

timcookantitrust
Cook was hit with complaints from developers that the committee has spoken to. Apple was accused of making its ‌App Store‌ rules unavailable to developers, arbitrarily enforcing those rules, changing them at will, enforcing rules that benefit Apple, and discriminating between smaller and larger app developers.

In response, Cook claimed that Apple treats all developers the same, with open and transparent rules. "We care deeply about privacy and quality. We look at every app, but the rules apply evenly to everyone." Cook said that some developers are not favored over others and that Apple examines all apps, small or large.

Cook was questioned about reduced commission rates for apps like Amazon Prime, which Cook said are available to "anyone meeting the conditions." The Congressman questioning Cook went on to ask whether Apple uses data collected from the ‌App Store‌ to decide whether it would be profitable for Apple to develop a competing app, a question that Cook skirted.

Cook was then asked what was stopping Apple from potentially raising its ‌App Store‌ commissions and fees, something that Apple has never done. Cook said that there's competition to attract developers just like there's competition to attract customers, likening the battle for developers to a "street fight for marketshare."

There's competition for developers just like there's a competition for customers. And so competition for developers, they can write their apps for Android, or Windows, or Xbox, or PlayStation. We have fierce competition at the developer side and the customer side. Essentially, it's so competitive I'd describe it as a street fight for market share in the smartphone business.

Cook also said that Apple does not retaliate or bully app developers who do not agree to Apple's ‌App Store‌ rules. "It's strongly against company culture," said Cook.

The antitrust hearing is ongoing, and can be watched live over on YouTube. The antitrust subcommittee is also questioning Facebook CEO Mark Zuckerberg, Google/Alphabet CEO Sundar Pichai, and Amazon CEO Jeff Bezos. Most of the questions so far have been for Pichai and Zuckerberg, but we'll share additional details on anything else notable Cook has to say.

Popular Stories

iPhone 17 Air Size Feature

'iPhone 17 Air' With Rear Camera Bar Allegedly Shown in Leaked Photo

Tuesday January 21, 2025 12:46 pm PST by
A leaker known as "Majin Bu" today shared an alleged image of a component for the rumored, ultra-thin "iPhone 17 Air" model. The blurry, pixelated image shows a pair of rear iPhone shells with a pill-shaped, raised camera bar along the top. On the left side of the bar, there is a circular cutout that appears to be for a single rear camera. On the right side of the bar, there appears to be an ...
iOS 18

Apple Expected to Release iOS 18.3 Next Week With These New Features

Thursday January 23, 2025 6:41 am PST by
iOS 18.3 should be released to the public next week, following beta testing since mid-December. While the software update is a relatively minor one, it still includes a handful of new features, changes, and bug fixes for iPhones. Below, we recap everything new in iOS 18.3. Notification Summary Changes Examples of inaccurate Apple Intelligence notification summaries Apple Intelligence...
iOS 18

Here Are Apple's Full Release Notes for iOS 18.3

Tuesday January 21, 2025 4:31 pm PST by
Apple provided developers and public beta testers with the release candidate version of iOS 18.3 today, and with it comes release notes confirming what's new. While we knew about several of the features that are in the update, there are some lesser known tweaks and bug fixes. The update adds new Visual Intelligence features for iPhone 16 models, it tweaks Notification summaries on all...
Apple Pay Walmart Feature

Walmart Stands Firm on Why It Doesn't Accept Apple Pay in the U.S.

Thursday January 23, 2025 7:32 am PST by
Walmart still does not accept Apple Pay or other NFC payments at its more than 4,600 stores across the U.S., and it stood firm on its reasoning for that today. A spokesperson for Walmart today informed MacRumors that its position on contactless payments has not changed since we last reached out about the matter in 2022. The big-box retailer said it remains focused on its own convenient...
Generic iOS 19 Feature Mock Light

iOS 19 Leak Reveals All-New Design

Friday January 17, 2025 2:42 pm PST by
iOS 19 is still around six months away from being announced, but a new leak has allegedly revealed a completely redesigned Camera app. Based on footage it obtained, YouTube channel Front Page Tech shared a video showing what the new Camera app will apparently look like, with the key change being translucent menus for camera controls. Overall, the design of these menus looks similar to...
truecaller

Truecaller iOS Update Rolls Out Real-Time Caller ID Support

Wednesday January 22, 2025 2:07 am PST by
Popular caller ID app Truecaller is rolling out an update that brings real-time caller ID support to its iOS subscribers. Apple introduced Live Caller ID Lookup in iOS 18, allowing third-party caller ID apps to securely retrieve information about a caller from their servers, hence today's Truecaller update. iPhone users can enable the Live Caller ID Lookup feature by going to Settings ➝ ...
ipad pro 2024

New iPad Pro Reportedly Launching This Year

Tuesday January 21, 2025 6:40 am PST by
Apple plans to release at least one new iPad Pro model this year, according to a supplier-focused report today from Korean website The Elec. It is likely that the 11-inch and 13-inch iPad Pro models would be updated simultaneously. After receiving an OLED display last year, the report said the iPad Pro will receive only "minor" changes this year. Overall, the next iPad Pro is expected to...
apple tv 4k new orange

New Apple TV Launching This Year With These New Features

Wednesday January 22, 2025 6:01 pm PST by
A new Apple TV is expected to be released later this year. In this article, we recap rumored features and changes for the device. The next Apple TV will be equipped with Apple's own combined Wi-Fi and Bluetooth chip, according to Bloomberg's Mark Gurman. He said the chip supports Wi-Fi 6E, which would be an upgrade over the current Apple TV's standard Wi-Fi 6 support. Wi-Fi 6E extends the...
airtag 4 pack blue

AirTag 2 Launching This Year With These 3 New Features

Sunday January 19, 2025 8:11 am PST by
After a four-year wait, a new AirTag is finally expected to launch in 2025. Below, we recap rumored upgrades for the accessory. A few months ago, Bloomberg's Mark Gurman said Apple was aiming to release the AirTag 2 around the middle of 2025. While he did not offer a more specific timeframe, that means the AirTag 2 could be announced by the end of June. The original AirTag was announced...

Top Rated Comments

ouimetnick Avatar
59 months ago
I can’t watch the livestream while at work but I’ve been reading some of the questions. I’d like to know why these politicians are wasting everyone’s time asking stupid questions? They should bring in people who understand how these companies operate to ask questions, not people with the same level of understanding as my 70 year old parents. ?
Score: 25 Votes (Like | Disagree)
aaronhead14 Avatar
59 months ago
As a consumer, all I want is for my experience on the iPhone to not feel crippled. But right now, with Apple effectively blocking their competitors’ services from fully functioning on iOS, I’m unable to have a very good experience as a consumer.

Two examples that come to mind are: 1) The inability to purchase movies in the Vudu app. 2) The inability to purchase eBooks in the Kindle app.

Apple prefers you buy movies from iTunes/AppleTV, and eBooks from iBooks. So they intentionally cripple the competition.

This is not only hostile to developers, but hostile to consumers.

Android is not affected by either of these issues. Both of those apps are fully functional on Android.

Apple, please do what’s best for consumers. Stop crippling apps.
Score: 17 Votes (Like | Disagree)
triangletechie Avatar
59 months ago
Jim Jordan is such a clown.
Score: 14 Votes (Like | Disagree)
Stevez67 Avatar
59 months ago

Nobody suggested Apple should sell products that wouldn’t make them money. Not sure where you got that idea from. Apple should simply take a reasonable fee, rather than an outrageous one. Apple is clearly the problem here. These apps work perfectly on other platforms. iOS is the only platform where they are crippled.
Apple is charging fees similar to other vendors. And frankly, in retail in general, a 30% markup is not outrageous.
Score: 12 Votes (Like | Disagree)
GadgetBen Avatar
59 months ago
Honestly, some of these congress questions are ridiculous and ill-informed.

They need an education in business and technology.
Score: 12 Votes (Like | Disagree)
jent Avatar
59 months ago

He also said developers don’t pay for shelf space. Except for that 30%...
Another commenter referenced placement, or slotting fees, and I presume that's what Tim Cook was referring to. In the world of supermarkets, for example, there are complex contracts where the grocer charges the manufacturer for the right to shelf space. It can be a flat fee, a percentage of sales, or any combination of factors. I don't know very much about it but it's safe to assume Tim was basically saying "We're not like those stores where you have to specifically pay extra just to have your item up for display, and Apple only takes a cut when you sell." Another parallel would be Costco, where apparently they offer very difficult negotiations for the right to sell your products at their store, but with the high volume most sellers are happy. That said, Apple offers the same 70% of sales to all developers, so the treatment is the same across the board.
Score: 12 Votes (Like | Disagree)