A highlight from Will Epic Fail?

Automatic TRANSCRIPT

When app developers build apps like uber or instagram which took advantage of the cameras or gps building. Iphones but just like many near teenagers. Apple's app store is starting to get into trouble. Sure developers have made billions of dollars off of it over the years. But apple's innocence is gone. This is the information for one one. I'm cory weinberg on. This week's episode apple is on trial. It was sued last fall by epic games. Which has that. Apple's app store is a monopoly. The iphone maker faces an upcoming three week trial in. Us district court which begins may third and oakland. The information justice go. We'll be covering the trial and he'll give us the rundown on the case. The backstory and why apple is likely to win then. Venture capitalists have for years been pouring money into food delivery startups. So why does a startup from philadelphia with a funny name like go. Puff think it's reinventing delivery and urban logistics. I'll speak with the information senior editor. Wendy pollock about reporting that. I did about go bus. It's been a very secret. His company over the years kind of under the radar. But i got under the hood and got to look at his numbers. Go off just might be for real if it can overcome technology branding and labor challenges but first. Let's get to josh and the apple trial apples. Trial against epic. The maker of fortnight is the first key. Us courtroom test of the backlash against big tech. It will showcase the wildly profitable but souring relationship between apple and some key mobile software developers. Josh cisco has been covering the trial for the information and he joins me now. Hey josh hickory we. We don't always get breakdown fun courtroom battles at the information but today we do a this is a fun wide. Let's start with with sort of the bias happening. Why is the app. Store under legal scrutiny. Next week well essentially because of its size. Apple's app store along with google's app store. Google play are the two primary means of getting software apps on your mobile phone and apple's stores wildly popular. It's sort of the two companies are duopoly and they wheeled tremendous control over developers and there's been an increasing pushback from the developer market against both apple and google. This particular trial just involves apple. But there's been a tremendous pushback against both because of what developers perceive as onerous terms that they have to abide by in order to get their software onto phones. All right so. Let's talk about some of the terms and the plaintiff in this case. He's epic games. Who is epic and are they kind of alone out there. Making a case against apple did they. Did they have in their corner. What's what's that side. all about. What do they say so epic is known mostly for fortnight a video game a multi player video game. That's been wildly popular over the last several years They have been pushing back against apple for for some time. It came a crescendo. Last august with this lawsuit They're definitely not alone. Numerous other companies big ones such as spotify match. There's a company called tile. Many other companies have also started pushing back against apple The control over the app stores and essentially amounts to who main issues one is apple forces developers for to use their payment system for any purchase. That has made with an app and they take thirty apple takes a thirty percent cut and developers say that they have no other choice if they want. Apples payment system. And you know if there's if there were other payment systems pay pal square or anything else that would lower the commissions to a more competitive Market rate rather than apple unilaterally setting the price so good are these developers gang. What are they hoping in epic in particular. What are they hoping. Use the outcome of this trial epic and other developers are hoping that essentially the app store gets cracked open that other payment providers are able to to process in-app that would bring the thirty percent commission down and they want to be able to sell software onto the onto. Iphones outside of the app store. They want a third party app store. Which has has steadfastly refused to budge on either additional app stores or alternative payment systems and would argument. Do you expect apple to make about. Why are third party. Apps store could be bad it could be bad for consumers could be you know what what is what is their argument of why they should have a a kind of mode like this of the. Is the app store. Good in their mind. Apple first off says that the product they've created as created tremendous value for everybody involved in and that's wrong and people you know the apple itself end developers have made billions and billions of dollars. Apple says that it needs to have control over over software over what third party software is downloaded onto phones. They say it's a security reason that they are able to curate this experience. The only offers high-quality apps and it's free of malware god actors and wrapped up in that is its payment system. They say that this is. This is their product and they've created value and they should be able to be compensated for that value. So you've written a little bit about apple's history around sort of issues of competition. Has apple faced antitrust issues from the beginning of the app store. Like like take us back. A little the yeah. There's been complaints to some degree since it started. They've been meshed in class action litigation. It's making some of the same arguments that epic and other developers are making. Those cases have been brought by actual actually been brought by consumers by people who purchased the apps who say that those commissions apple charges of any competitively unnecessarily inflated the cost of apps that if apple didn't charge thirty percent developers would be able to lower their prices so they were overcharged dot. Litigation is ongoing. I think there's been a steady stream of complaints from developers. Probably some of them Baseless but others maybe with more validity re whenever developer gets kicked out of the app store. They're always you know they're not pleased. And i think there's over time there's been a push to sort of call that any competitive regardless of whether apple has a valid justification or not. They've been in under scrutiny for a number of other issues as well. There wasn't a trial against e book price-fixing that involve them and a number of book

Coming up next