Longtime Apple executive Phil Schiller on Wednesday acknowledged a court-ordered makeover of the U.S. payment system in its iPhone app store hasn’t done much to increase competition — a shortcoming that could result in a federal judge demanding more changes.
Apple executive Phil Schiller, left, goes through courthouse security in Oakland , Calif., on May 22, 2024 before testifying in an ongoing legal battle over the fees the iPhone maker is charging for digital transactions completed in apps using independent payment systems. OAKLAND , Calif. —
After more than two years of ultimately unsuccessful attempts to overturn the order to allow alternative payment links within apps, Apple in January complied with the requirement. As part of the change, Apple set up an application process to approve links to alternative payment systems and imposed fees of 12% to 27% when users clicked on those options.
In the five hearings held on the issue so far, Gonzalez Rogers has repeatedly sounded frustrated with Apple executives while occasionally asking questions suggesting she thinks the iPhone maker is mostly focusing on how to preserve its profit margins and corral most payments to its in-house system. During his Wednesday testimony, Schiller repeatedly defended Apple’s response to the judge’s order as well-intentioned to allow more competition while protecting the privacy and security of users.
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