Apple in antitrust proceedings: CFO can't quantify App Store profits

Apple itself allegedly does not really know how much profit apps in the App Store generate for the iPhone manufacturer. According to media reports, Apple's new CFO Kevan Parekh stated this in an antitrust case before a court in London on Thursday. The US-American insisted that the reason for the inaccuracy was indirect costs, which made it impossible to precisely quantify the profit, even after being asked several times.

In the proceedings in the UK, the plaintiffs accuse Apple of having established and abused a monopoly position. The victims are app developers and customers. The "excessive and unfair" commissions are passed on to consumers, the Financial Times reports from the trial. The plaintiffs are demanding compensation of 1.5 billion pounds, the equivalent of around 1.76 billion euros.

Apple points to indirect costs

Apple's defense is based on the fact that the App Store as a source of income for Apple is also offset by considerable costs for the development and maintenance of the ecosystem and that the company faces intense competition in the smartphone market. The plaintiffs had therefore defined the focus on the profit margin too narrowly. With regard to the app store margin, only indicative estimates were possible.

The plaintiff in the seven-week trial at the Competition Appeal Tribunal is Rachael Kent, a lecturer at King's College in London, who wants to represent the interests of British consumers in the case. The case against Apple is one of several in the UK. Lawsuits have also been filed against big tech companies such as Alphabet, Microsoft and Meta.

One of the new CFO's first appearances

For Kevan Parekh, it is one of his first public appearances in his new role. With his statements, he is following the argumentation of his predecessor, the long-standing CFO Luca Maestri, who argued similarly in court. Apple has already had to defend itself several times against accusations of taking too high a share of apps.

(mki)