- In a rare occurrence, Apple (AAPL -1.1%) CEO Tim Cook is on the witness stand this morning in California, in what looks to be a long day of testimony in his company's legal fight against Epic Games over Apple's App Store fees.
- Safety and security are critical and the "foundation of privacy," Cook says in response to Epic's suggestion that the store wasn't as private as Apple implied, according to CNBC.
- The App Store review process is "not perfect" but Apple does a "really good job," Cook says.
- At heart in the battle is whether providers like Epic can install alternative app stores on iPhones rather than submit to Apple and its cut of sales.
- And Cook has begun turning to that question of Apple's commission, noting on the stand that 85% of apps in the store are free, and that as for the rest, most developers pay a reduced fee (15% instead of 30%) because they have less than $1M in revenue per year.
- Meanwhile, he's getting some support outside the courtroom today: Snap (SNAP +0.3%) CEO Evan Spiegel says "we're happy" to pay the 30% commission, "in exchange for all of the amazing technology that they provide to us in terms of the software but also in terms of their hardware advancements."
- “We really feel like Snapchat wouldn’t exist without the iPhone and without the amazing platform that Apple has created,” Spiegel told CNBC.
- Those comments come in contrast to Barry Diller, who says today his companies are "overcharged in a disgusting manner" by Apple, and "I mean, it's criminal. Well, it will be criminal."
- Epic Games is 40% owned by Tencent Holdings (TCEHY -3%), with a majority held by founder Tim Sweeney.