A federal judge on Wednesday questioned whether Apple has set up a gauntlet of exasperating hurdles to discourage the use of alternative payment options in iPhone apps, despite a court order seeking to create more ways for consumers to pay for digital .
A federal judge on Wednesday questioned whether Apple has set up a gauntlet of exasperating hurdles to discourage the use of alternative payment options in iPhone apps, despite a court order seeking to create more ways for consumers to pay for digital services.
The verbal sparring between Judge Yvonne Gonzalez Rogers and the head of Apple’s app store kicked off a hearing focused on whether Apple is still steering U.S. consumers to its once-exclusive app payment system in defiance of an injunction aimed at promoting more choices that could help lower prices.
Gonzalez Rogers’ order requires Apple to allow app developers to display links to other options besides the company’s own payment system in the U.S. Apple makes billions of dollars annually from that setup, which imposes commission ranging from 15% to 30% on digital transactions completed within the most popular iPhone apps.
Apple’s app store and its commission system also is being targeted in another antitrust case recently filed by the U.S. Justice Department in a case alleging the iPhone walls off competition in a variety of ways that stifle competition and innovation.
Gonzalez Rogers often sounded frustrated and skeptical as she periodically chimed in during four hours of testimony from Matthew Fischer, the Apple executive in charge of the iPhone app store.
The tone of the judge’s questions indicated she is concerned Apple’s efforts to comply with her order have been primarily designed to protect the company’s profits instead of making it easier for iPhone users to switch to other in-app payment options, as she intended.
