Apple CEO Tim Cook will testify in court: here’s what to expect

By: Ajay Pal Singh
Ajay Pal Singh
Ajay worked at Tata Motors in project planning before discovering his passion for stocks. Today, he lives in Canada… read more.
on May 17, 2021
  • Apple CEO Tim Cook will defend company's position in the court battle of Apple and Epic.
  • Cook will tout the company's values and the benefits its App Store has brought to developers.
  • App Store is a part of the company’s services business that generates more than $50 billion annually.

The third week of the trial between Epic Games Inc. and Apple Inc. (NASDAQ: AAPL) will see Apple CEO Tim Cook testify to defend his company’s position in the ongoing legal battle.

Epic sued Apple in August last year and accused the tech giant of violating antitrust laws after its videogame app ‘Fortnite’ was removed from the App Store. Apple maintains that Epic breached the developer contracts due to which the app was taken off.

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Tim Cook’s expected testimony

In a high profile testimony, Cook will speak about the company’s core values going into how those values guide the way company operates and handles the competition it faces. He is expected to further defend the company’s argument that it is not a monopoly when it comes to the App Store.

We could see him tout the benefits that the App Store has brought to the developers, a theme that the company often emphasizes during its product demonstrations and other events

“Tim Cook’s going to have to show that the reason they had these fees was not to maintain their dominance or squeeze money out of somebody, but rather, it was critical to maintaining a business and there’s nothing unfair about it,” said Jeffrey Jacobovitz, a former lawyer with the Federal Trade Commission.

In addition to Cook, the company’s former marketing chief Phil Schiller and Craig Federighi, head of software, are also likely to testify to bolster the company’s defense.

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Impact of trial on Apple

The results of the trial can have a major impact on Apple in case of an adverse judgement as App Store is a critical part of the company’s services business that generates more than $50 billion annually.

The judgement will also have wider industry ramifications as Google also operates anr app store on a similar business model on the Android based devices.

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