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Apple Facing Criticism for Claiming Ignorance on App Store Profit Margins

Posted on 2 May 2025

The legal battle between Apple and Epic has concluded unfavorably for Apple, as a judge determined that the company intentionally breached a previous injunction. One particularly notable assertion from Apple was its claim of ignorance regarding the profitability of the App Store. Apple insider Mark Gurman highlighted this statement, prompting widespread reactions.

Many observers criticized Apple for losing its innovative edge, while some proposed that the complexity of Apple’s expenses might obscure the exact profit figures. Nonetheless, the assertion that Apple’s highly detail-oriented and financially savvy management lacks knowledge of the App Store’s profits raised eyebrows. Gurman labeled this claim as “egregious,” challenging the plausibility of a company of Apple’s caliber failing to track such essential financial information.

The App Store reportedly generates billions for Apple, making it hard to believe that the company wouldn’t maintain strict oversight over this vital segment. Compounding Apple’s troubles, the judge indicated that the company had also lied in 2021, assuming the court would overlook its misrepresentation. The crux of the case revolved around Apple’s practice of taking a percentage of transactions made outside the App Store, a contentious issue for Epic and other developers.

The court’s ruling signifies a monumental loss for Apple, which has stated its intention to appeal the decision it strongly contests. While other app platforms, like Google Play, also impose transaction fees, Apple’s case drew particular attention due to its tightly controlled ecosystem. Recent changes in the EU, driven by the Digital Markets Act (DMA), have forced Apple to permit app sideloading, a practice that remains unaddressed in the U.S.

Some believe that the ruling benefits all parties save for Apple, arguing that it should face the same regulatory standards in the U.S. as in Europe. Apple’s noncompliance with the earlier injunction has now put it under investigation for potential criminal contempt. Abdullah, a tech enthusiast, particularly enjoys discussing smartphones, virtual reality, and audio equipment, eagerly following significant developments from major companies like Apple.

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