Apple CEO Tim Cook Comments on 'Hey' App Controversy and Apple's App Store Policies

Apple CEO Tim Cook was, as expected, questioned about Apple's App Store policies during today's antitrust hearing with the U.S. House Judiciary Antitrust Subcommittee. Cook primarily stuck to the talking points provided in his opening statement [PDF], but he did have some extra color to add.

app store 2019
Cook was specifically questioned about email app "Hey" from Basecamp, which was at the center of a huge controversy earlier this year after Apple approved the app and then threatened to remove it from the ‌App Store‌ because Hey was skirting Apple's in-app purchase rules.

At issue was the fact that the "Hey" app was non-functional for customers unless they subscribed to the $99 per year Hey email service outside of the ‌App Store‌. Hey did not want to give Apple a 30 percent cut of profits, while Apple claimed that it did not want an app that "doesn't work" on the ‌App Store‌. Hey at the time opened to a blank screen asking users to log in.

When asked about the inconsistency over the approval of the app and the subsequent controversy, Cook didn't have much to say other than pointing out that the issue was resolved and that the ‌App Store‌ provides a lot of value for developers.

Hey is in the App Store today and we're happy that they're there. I believe they have a version of their product for free so they're not paying anything on that. I would also say that the 15 or 30 percent is for lots of different services, compilers, programming languages, APIs, etc. [...]

It's an economic miracle that the App Store allows a person in their basement to start a company and serve 170 countries in the world. I believe it's the highest job creator in the last decade.

Cook went on to explain that Apple does sometimes make mistakes given the volume of apps that are examined each week. "I'm sure we made errors," said Cook. "We get 100,000 apps submitted a week and there are 1.7 million apps in the ‌App Store‌."

Cook was asked if Apple's 15 to 30 percent cut that it takes from apps squeezes out the next generation of App makers and whether it's unjust, and Cook said no.

No, I don't think so. There are a lot of apps on the store and a lot of people are making a very good living.

There were questions on whether Apple was "extracting" commissions from apps that have had to change their business models in response to the pandemic like Airbnb and ClassPass, (as outlined here) and whether this was pandemic profiteering.

Cook said Apple would "never do that." He went on to explain that if something has moved to a digital service that does not follow the ‌App Store‌ rules, that it does need to go through the ‌App Store‌. "In the cases I'm aware of, we're working with the developers," he said.

As for educational apps, Cook said that Apple will not make efforts to monetize apps that students adopt as they transition to learning digitally.

We're proud of what we've done in education. We're serving that market in a significant way. We will work with people who move from a physical to virtual world because of the pandemic.

When asked about limiting copy cat apps and whether those rules apply to Apple, Cook said that he was not familiar with what was being asked, but Apple is subjected to the same rules as other app developers. The Congressman questioning him, Joe Neguse, said that Apple's ‌App Store‌ rules allow Apple to use any data collected by developers to create clone apps while also preventing these kind of apps from developers.

Cook said that he was not familiar with that, and that he'd follow up with the Congressman's office. He did, however, say that Apple would "never steal somebody's IP."

Cook's full testimony can be watched on YouTube as the U.S. House Judiciary Antitrust Subcommittee livestreamed the proceedings.

Popular Stories

Apple Shopping Event 2025

Apple Announces 2025 Black Friday Event, Here's What You Can Get

Thursday November 20, 2025 6:28 am PST by
Apple's annual four-day Black Friday through Cyber Monday shopping event is returning on Friday, November 28 through Monday, December 1 in many countries, including the United States, Canada, Australia, New Zealand, France, Germany, Italy, Spain, the United Kingdom, Belgium, the Netherlands, Sweden, Thailand, and others. During the shopping event, customers can get an Apple gift card with...
iPhone 17 Pro Cosmic Orange

10 Reasons to Wait for Next Year's iPhone 18 Pro

Wednesday November 19, 2025 4:00 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 at the same time, which is why we often get rumored features months ahead of launch. The iPhone 18 series is no different, and we already have a good idea of what to expect for the iPhone 18 Pro and iPhone 18 Pro Max. One thing worth...
iOS 26

iOS 26.2 Adds These New Features to Your iPhone

Thursday November 20, 2025 10:50 am PST by
iOS 26.2 is currently in beta testing. The upcoming update includes a handful of new features and changes on the iPhone, including a new Liquid Glass slider for the Lock Screen's clock, offline lyrics for Apple Music, and more. In a recent press release, Apple confirmed that iOS 26.2 will be released to all users in December, but it did not provide a specific release date. Keep reading...
hikawa phone grip stand apple%402x

Apple Launches Second Limited-Edition iPhone Accessory in a Month

Friday November 21, 2025 3:53 am PST by
Apple has begun selling the Hikawa Phone Grip and Stand, a new limited-edition iPhone accessory designed with accessibility in mind. Designed by LA-based Bailey Hikawa to celebrate the 40th anniversary of accessibility at Apple, the grip uses magnets to securely snap onto any iPhone with MagSafe. Apple says it can be removed with ease, and doubles as a stand with two different viewing...
ipad mini 7 feature red and blue

iPad Mini 8: Four Major New Features to Expect

Wednesday November 19, 2025 7:50 am PST by
Apple's eighth-generation iPad mini is highly likely to arrive next year, offering a significant refresh of the device with at least four major new features. OLED Display The next-generation version of the iPad mini could feature an OLED display, as part of Apple's plan to expand the display technology across many more of its devices. Apple's first OLED device was the Apple Watch in 2015, ...
applecare apple care banner

Apple Brings New AppleCare+ Options to India

Tuesday November 18, 2025 8:42 am PST by
Apple today announced an expansion of AppleCare+ coverage in India, with new options for monthly and annual plans, and the addition of Theft and Loss for iPhone for the first time. Options for monthly and annual AppleCare+ plans in India provide more choice and flexibility, allowing users to keep coverage for as long as they require. Apple's vice president of Worldwide iPhone Product...
watchos 26 workout app

Apple Watch Users Claim Workout App Is Now Worse in Every Way

Thursday November 20, 2025 7:01 am PST by
Apple Watch owners have been voicing their frustration online over changes to the Workout app that Apple introduced in watchOS 26, with many finding the redesigned interface makes starting exercises difficult and exasperating. When Apple launched watchOS 26 in September, the Workout app went from large, easily tapped workout tiles to a scrolling, corner-button interface. Instead of tapping a ...
ipad black friday 2025

The Best Early Black Friday iPad Deals

Thursday November 20, 2025 10:20 am PST by
Black Friday is just over a week away, and iPad deals have finally started to flood in at retailers like Amazon and Best Buy. Below we're tracking discounts on every current generation iPad, including lowest-ever prices on M3 iPad Air and M5 iPad Pro, plus steep markdowns on iPad and iPad mini. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a ...
apple wallet drivers license feature iPhone 15 pro

Two More U.S. States Commit to Offering iPhone Driver's Licenses in Apple Wallet App

Thursday November 20, 2025 8:21 am PST by
In select U.S. states, residents can add their driver's license or state ID to the Apple Wallet app on the iPhone and Apple Watch, and then use it to display proof of identity or age at select airports and businesses, and in select apps. Earlier this week, Illinois became the 13th state in the U.S. to offer the feature. Subsequently, we shared a list of additional states that are committed...
android iphone airdrop quickshare

iPhone Users Can Now AirDrop Files to Android Devices

Thursday November 20, 2025 9:47 am PST by
Google today announced a new cross-platform feature that allows for file sharing between iPhone and Android users. With AirDrop on the iPhone and QuickShare on Pixel 10 devices, there is a new file transfer function available. The file sharing option works on Apple devices that include iPhone, iPad, and Mac, along with the Pixel 10, Pixel 10 Pro, Pixel 10 Pro XL, and Pixel 10 Fold....

Top Rated Comments

atomic.flip Avatar
69 months ago

As a developer, I disagree.

I bet Apple makes zero profit at best directly from the 30%. Having teams of developers creating the next version of iOS, the next version of Xcode, etc. costs a lot.

Have you seen how poor the developer tools are for Android development? Google also charges 30% and I bet they do make significant profit from it.

Maybe Apple should just formally ring-fence the app-store income and categorically use it only for app-store upkeep and enhancement with any surplus (if there ever is any) used in part for the good causes that Apple supports. This way if they are forced to reduce the percentage, the people that force it will be seen to be reducing the funds that go to good causes. Just thinking it might be better for Apple to be ahead of the curve on this one.
What on earth?!?! Honestly, I can believe you are a developer but I struggle to imagine you’re an independent business owner or a business developer / manager.

The cost of maintenance of the AppStore is infinitesimal compared to the revenue it generates. And just where do you think that revenue comes from? App sales, subscriptions and in-app purchases. 30% is nearly one third of the gross revenue generated by any one app. And that is frankly too high. It’s always been too high and the carriers (AT&T, Verizon etc.) would do the same with their own AppStores back in the day.

There are a few things at issue and one of them is that there is no real alternative to the AppStore for Apple iOS devices. It’s a walled garden. And since Apple provides no ability for a smaller entity to negotiate rates then it’s quite a monopoly. Or rather the correct legal term would be a matter of “detrimental reliance”.

Sadly, in the tech sector (as it relates to software) when it’s not open source it’s managed the same way across the board.

I don’t have the energy to comment further on this today but that revenue share needs to be down in the teens and no greater. Or at minimum Apple needs to stop charging app developers an annual fee just to get advanced access to the SDKs and to publish on the store front.
Score: 13 Votes (Like | Disagree)
SteveJUAE Avatar
69 months ago
They would have to keep Tim in the chair for around 3 years that's the usual response time for Apple admitting something is wrong
Score: 12 Votes (Like | Disagree)
cygy2k Avatar
69 months ago
The people complaining about the 30% have clearly never tried selling goods or services anywhere as that is the going kickback for almost every professional marketplace in any industry. From eBooks to App Stores to old school consignment shops - they provide the service, you provide the goods, they keep a portion. It’s not anticompetitive, it’s the very definition of capitalism.
Score: 10 Votes (Like | Disagree)
macjunk(ie) Avatar
69 months ago

As a developer, I disagree.

I bet Apple makes zero profit at best directly from the 30%. Having teams of developers creating the next version of iOS, the next version of Xcode, etc. costs a lot.

Have you seen how poor the developer tools are for Android development? Google also charges 30% and I bet they do make significant profit from it.

Maybe Apple should just formally ring-fence the app-store income and categorically use it only for app-store upkeep and enhancement with any surplus (if there ever is any) used in part for the good causes that Apple supports. This way if they are forced to reduce the percentage, the people that force it will be seen to be reducing the funds that go to good causes. Just thinking it might be better for Apple to be ahead of the curve on this one.
SMH.
So you think Apple is doing the devs a favor by developing the next version of iOS, XCode etc? Of course it costs a lot...but they should not be looking to reimburse those costs through App store fees...rather sell hardware (which they are doing very well)

Xcode, iOS are all tools that Apple uses to attract devs to the platform so that they develop for the platform, enabling Apple to sell even more devices. And don't forget Apple charges 99 per year already but they still deem it fit to charge 30% of whatever your app makes. If Apple did not develop iOS or XCode, there would be no apps developed by devs and people would flock to Android cause Android phones are suddenly more useful.

So yeah...Apple is only helping themselves with iOS, XCode etc. No need to pretend they are doing a favor.

So Apple gives you Xcode, iOS and a bunch of frameworks. What devs do with it is completely their ingenuity and their effort. Apple can and should charge for Xcode, iOS, payment processing etc but what they are doing is leeching of devs' ingenuity like a parasite. Suppose somebody conceives an app that cures cancer using totally out of the world innovation, does Apple then have a right to reap the fruits of somebody else's labor?

If they are so confident in their logic, let them try doing the same to their Mac OS...whatever, whoever builds apps for the Mac platform, owe Apple cash cause they are using the OS frameworks....

Just infuriating to me on how entitled Apple feels to somebody else's hardwork. Parasites!
Score: 8 Votes (Like | Disagree)
macmyworld Avatar
69 months ago
Sounds like an interview with Al Capone. Protection for pay.

Love the App Store, but 30% is too much. Especially when some apps get around it.
Score: 6 Votes (Like | Disagree)
ader42 Avatar
69 months ago

Apple also charges a $99 per year while Google a one time $25 so you better get your money's worth.
Just owning an iPhone over an Android gives me more than £99 value each year lol
Score: 4 Votes (Like | Disagree)