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While Apple has described the changes as a major concession to app developers, critics have argued that the moves are more for show than a substantive revamp of its business.
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A federal judge is expected to soon issue a verdict in that case. Epic wants to force the iPhone maker to allow app developers to avoid App Store commissions altogether, which would be a major financial hit to Apple. The court fight with Epic, which played out in a federal court in Oakland, Calif., earlier this year, arguably presents the greater threat to Apple’s App Store business. There are also pending investigations into whether Apple is abusing its dominance in the App Store in Europe, Britain and, most recently, India. South Korea’s parliament on Tuesday passed a bill that will ban app stores - namely Apple and Google - from forcing developers to use only their proprietary payment systems. Last month, the Senate also introduced antitrust legislation aimed at fostering competition with both Apple and Google’s app stores.
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Its App Store is the target of an antitrust investigation by the Justice Department. Ives said any money Apple collects from so-called reader apps - the apps it gave ground to on Wednesday - was negligible at best.Īpple is facing growing pressure from regulators and politicians around the world. “That’s something Apple will fight tooth-and-nail to defend,” said Daniel Ives, an analyst at Wedbush Securities. And on the witness stand in May, Tim Cook, Apple’s chief executive, said the “majority” of App Store revenue still comes from games. In 2016, 81 percent of Apple’s App Store revenue came from games, compared to 3 percent for music and 4 percent for other forms of entertainment, according to a slide presented by Epic’s lawyers. While Apple does not normally detail how its App Store business is divvied up, evidence presented in a recent court fight with Epic Games, maker of the popular video game Fortnite, provided some insight.