Tim Cook Says App Store Would Become a 'Flea Market' if Third-Party Payment Systems Were Allowed

In a recent interview with the Toronto Star, Apple CEO Tim Cook spoke about a wide variety of topics, ranging from App Tracking Transparency to Apple's ongoing legal battle over App Store policies with Fortnite creator Epic Games.

epic iap feature 3
Notably, Cook said that Epic Games' desire for Apple to let developers offer their own payment systems in apps "would make the App Store a flea market":

At the heart of the Epic complaint is they'd like developers to each put in their own payment information. But that would make the App Store a flea market and you know the confidence level you have at the flea market.

The volume of people going into such a market would be dramatically lower, which would be bad for the user, because they would miss out on the innovation like we just heard with the four developers. And the developers would be left out because they wouldn't have a huge audience to sell to. So nobody wins in that environment.

Apple's App Store Review Guidelines require apps to use Apple's in-app purchase system, with direct payment systems forbidden.

Cook said he is confident that Apple should prevail in its lawsuit against Epic Games, so long as it is able to communicate the facts clearly. The U.S. bench trial is scheduled to begin May 3 in Northern California federal court.

Cook also revealed in the interview that Apple reviews 100,000 apps submitted for review every week and rejects about 40,000 of them. He said that by curating the App Store, users have "a safe and trusted place" to discover apps.

Timed with Cook's interview with the Toronto Star, Apple has issued a press release touting the success of the App Store in Canada. In the press release, spotted by the blog iPhone in Canada, Apple said the App Store now supports more than 243,000 jobs in Canada and added that developers across the country have generated more than $2 billion CAD in total earnings since the App Store launched in 2008.

Top Rated Comments

macintoshmac Avatar
16 months ago
Did macOS with its open app system become a flea market then, by Tim’s standards?
Score: 30 Votes (Like | Disagree)
timborama Avatar
16 months ago
I love flea markets!
Score: 28 Votes (Like | Disagree)
Kkspire Avatar
16 months ago

Yeah, agree with others that Apple's choice of term to describe a lower-quality App Store perpetuates racist and ethnocentrist ideologies. The fact that no one in marketing/legal caught this illustrates the ubiquity of implicit bias.

Bad form, Apple.
So now it’s racist to say you never know what you’re gonna get shopping at flea markets. Hahahaha. Jesus. Ironically, you characterized him comparing to a flea market as a lower standard. :)
Score: 27 Votes (Like | Disagree)
sw1tcher Avatar
16 months ago

At the heart of the Epic complaint is they'd like developers to each put in their own payment information. But that would make the App Store a flea market and you know the confidence level you have at the flea market.

The volume of people going into such a market would be dramatically lower, which would be bad for the user, because they would miss out on the innovation like we just heard with the four developers. And the developers would be left out because they wouldn't have a huge audience to sell to. So nobody wins in that environment.
:rolleyes:


Having a 3rd party payment would be an additional payment option, Tim. An option. You know what "option" means, Tim?

Having a 3rd party payment option wouldn't make the App Store a flea market... no more so than a brick and mortar store having payment options aside from cash.

Does a brick and mortar store offering cash, check, debit, and credit card payments make it a flea market? No.
Does it dramatically lower the volume of customers going to the store? No.
Would it be bad for the customer? No.

The only thing that would be bad is Apple losing out on their 15% or 30% cut of the transaction. That's what Apple is worried about.

Want to talk about "confidence level," Tim. Let's talk about the confidence an app store user had in your App Store which lead to the loss of 17.1 bitcoins ('https://forums.macrumors.com/threads/bitcoin-scam-app-approved-by-apple-robs-iphone-user-of-600-000.2290123/') or of the App Store allowing scammers to rake in millions through the fake apps ('https://forums.macrumors.com/threads/scam-ios-apps-still-raking-in-millions-in-revenue-on-app-store-updated.2283962/').
Score: 27 Votes (Like | Disagree)
now i see it Avatar
16 months ago
They're all going to defend their monopoly with whatever convoluted logic they can dream up
Score: 25 Votes (Like | Disagree)
im2fast4u Avatar
16 months ago
Yes... I’m happy in the walled garden
Score: 19 Votes (Like | Disagree)

Related Stories

Tim Cook Feature Yellow

Apple CEO Tim Cook Testifies in Epic Games v. Apple Trial

Friday May 21, 2021 8:48 am PDT by
Today is the one of the last days of the Epic Games v. Apple trial, and Apple CEO Tim Cook has taken the stand to ask questions levied by both Apple and Epic lawyers. Cook's testimony won't be integral to the outcome of the trial, but what he has to say is of interest because this is the first time that he's testified in a legal case, which highlights the serious nature of this dispute....
fortnite apple featured

Epic Games v. Apple Trial Wraps Up, But We Likely Won't Know the Outcome for Months

Monday May 24, 2021 4:58 pm PDT by
The three week Epic Games v. Apple trial wrapped up today, with a series of debates that were held in lieu of traditional closing arguments. The wrap up follows Apple CEO Tim Cook's testimony last week, which saw him grilled by Judge Yvonne Gonzalez Rogers on Apple's App Store policies. As outlined by Protocol, at the conclusion of the trial, Rogers aimed to get at the heart of the dispute...
app store blue banner epic 1

Epic Games CEO Renews Attack on Apple and Calls for Single, Universal App Store

Tuesday November 16, 2021 3:31 am PST by
Epic Games CEO Tim Sweeney has today renewed his attack on Apple and called for a single, universal app store that works across all platforms (via Bloomberg). Last year, Epic's popular game "Fortnite" became the subject of heated litigation with Apple and Google over the rate of commission on in-app purchases. After Epic broke App Store rules by implementing a direct payment option, the game ...
app store blue banner epic 1

Epic vs. Apple Takes a Twist As 35 US States and Department of Justice Weigh in to Back 'Fortnite' Maker

Friday January 28, 2022 4:27 am PST by
Apple is stifling competition with its monopoly on app distribution through the App Store, attorneys general for 35 states told a California appeals court on Thursday. The joint statement was submitted into the appeals process that is ongoing following the judge's decision in the Epic v. Apple lawsuit, with the attorneys general siding with the "Fortnite" video game maker on the issue,...
roblox logo

Department of Justice Exploring Apple's Treatment of 'Roblox' Game in Antitrust Investigation

Monday December 6, 2021 12:46 pm PST by
The United States Justice Department is investigating Apple for antitrust issues, and Roblox is an area of interest for prosecutors attempting to put together a case, reports The Information. Investigators are looking for situations where Apple is unevenly enforcing rules for app developers, and Roblox is an area of interest because of the way the app works. Roblox is an online gaming...
fortnite apple logo geforce feature

Fortnite Coming Back to iOS Soon Thanks to Nvidia's GeForce NOW Service

Thursday January 13, 2022 11:19 am PST by
With the Apple vs. Epic Games lawsuit continuing on, there are no signs that Apple has any intention of allowing popular battle royale game Fortnite to return to the App Store on iPhone and iPad. Epic Games has found a workaround though, by partnering up with Nvidia. GeForce NOW, Nvidia's streaming gaming service, will soon add Fortnite support, allowing Fortnite to be played through a...
fortnite apple featured

Epic Games Pays Apple $6 Million as Ordered by Court

Monday September 13, 2021 3:31 pm PDT by
Epic Games today paid Apple $6,000,000 in royalties, Epic Games CEO Tim Sweeney said on Twitter. As part of the ruling in the ongoing Epic v. Apple legal battle, Epic was last week ordered by the court to pay 30 percent of the revenue that it collected from the Fortnite app using its illicit direct payment option. Back at the start of the dispute between Epic and Apple, Epic added a direct...
maxresdefault

Hands On: Testing Fortnite on iOS Using GeForce NOW

Thursday February 17, 2022 11:54 am PST by
Fortnite has been unavailable to play on the iPhone and iPad since Apple banned it from the App Store in August 2020 amid an ongoing legal battle with Epic Games, but the battle royale game is coming back to iOS devices thanks to Nvidia's GeForce NOW gaming service. Subscribe to the MacRumors YouTube channel for more videos. GeForce NOW is a browser-based gaming service that will allow iPhone ...

Popular Stories

maxresdefault

M2 13-Inch MacBook Pro With 256GB SSD Appears Slower Than Equivalent M1 in Real-World Speed Tests

Monday June 27, 2022 1:57 pm PDT by
Benchmark testing has indicated that the 256GB variant of the 13-inch MacBook Pro with M2 chip offers slower SSD performance than its M1 equivalent, and now real-world stress testing by YouTuber Max Yuryev of Max Tech suggests that the 256GB SSD in the 13-inch MacBook Pro is also underperforming in day-to day-usage. The M2 MacBook Pro with 256GB SSD and 8GB RAM was slower than the M1 MacBook ...
M2 Pro and Max Feature

Apple's Upcoming M2 Pro Chip for High-End MacBook Pro and Mac Mini Will Reportedly Be 3nm

Monday June 27, 2022 7:31 am PDT by
TSMC will manufacture Apple's upcoming "M2 Pro" and "M3" chips based on its 3nm process, according to Taiwanese industry publication DigiTimes. "Apple reportedly has booked TSMC capacity for its upcoming 3nm M3 and M2 Pro processors," said DigiTimes, in a report focused on competition between chipmakers like TSMC and Samsung to secure 3nm chip orders. As expected, the report said TSMC will...
iPhone 11 Pro vs iPhone 14 Pro

iPhone 11 Pro vs. 14 Pro: New Features to Expect if You've Waited to Upgrade

Monday June 27, 2022 11:22 am PDT by
With many customers choosing to upgrade their iPhone every two or three years nowadays, there are lots of iPhone 11 Pro users who might be interested in upgrading to the iPhone 14 Pro later this year. Those people are in for a treat, as three years of iPhone generations equals a long list of new features and changes to look forward to. Below, we've put together a list of new features and...
original iphone 2007

15 Years Ago Today, the iPhone Went On Sale

Wednesday June 29, 2022 4:43 am PDT by
Fifteen years ago to this day, the iPhone, the revolutionary device presented to the world by the late Steve Jobs, officially went on sale. The first iPhone was announced by Steve Jobs on January 9, 2007, and went on sale on June 29, 2007. "An iPod, a phone, an internet mobile communicator... these are not three separate devices," Jobs famously said. "Today, Apple is going to reinvent the...
tesla carplay hack

Tesla Apple CarPlay Hack Updated to Work With Any Tesla Model

Monday June 27, 2022 3:38 am PDT by
Polish developer Michał Gapiński has released a new and improved version of his "Tesla Android Project" which brings Apple's CarPlay experience to more Tesla vehicles than ever before. According to Gapiński, version 2022.25.1 provides "100% functional CarPlay integration for any Tesla," and comes with several new features and bug fixes. The project now supports DRM video playback so that...
13 inch macbook pro m2 mock feature 2

Base 13-Inch MacBook Pro With M2 Chip Has Significantly Slower SSD Speeds

Sunday June 26, 2022 2:52 pm PDT by
Following the launch of Apple's new 13-inch MacBook Pro with the M2 chip, it has been discovered that the $1,299 base model with 256GB of storage has significantly slower SSD read/write speeds compared to the equivalent previous-generation model. YouTube channels such as Max Tech and Created Tech tested the 256GB model with Blackmagic's Disk Speed Test app and found that the SSD's read and...
maxresdefault

Video Comparison: M2 MacBook Pro vs. M1 MacBook Pro

Tuesday June 28, 2022 2:45 pm PDT by
Apple last week launched an updated version of the 13-inch MacBook Pro, and it is the first Mac that is equipped with an updated M2 chip. As it's using a brand new chip, we thought we'd pick up the M2 MacBook Pro and compare it to the prior-generation M1 MacBook Pro to see just what's new. Subscribe to the MacRumors YouTube channel for more videos. For the video comparison, we're using the...
iPhone vs Galaxy Larger

Apple Executive Says Samsung Copied the iPhone and Simply 'Put a Bigger Screen Around It'

Tuesday June 28, 2022 8:59 am PDT by
The Wall Street Journal's Joanna Stern today shared a new documentary about the evolution of the iPhone ahead of the 15th anniversary of the device launching on June 29, 2007. The documentary includes an interview with Apple's marketing chief Greg Joswiak, iPhone co-creator Tony Fadell, and a family of iPhone users. One segment of the interview reflects on Android smartphones gaining larger...
widgets ios 16 feature

Gurman: iPhone 14 Pro to Feature Always-On Display Showing iOS 16's New Lock Screen Widgets

Sunday June 26, 2022 7:36 am PDT by
iPhone 14 Pro models are widely expected to feature always-on displays that allow users to view glanceable information without having to tap to wake the screen. In the latest edition of his Power On newsletter for Bloomberg, Mark Gurman said the feature will include support for iOS 16's new Lock screen widgets for weather, fitness, and more. "Like the Apple Watch, the iPhone 14 Pro will be...