Tim Cook Says App Store Would Become a 'Flea Market' if Third-Party Payment Systems Were Allowed

In a recent interview with the Toronto Star, Apple CEO Tim Cook spoke about a wide variety of topics, ranging from App Tracking Transparency to Apple's ongoing legal battle over App Store policies with Fortnite creator Epic Games.

epic iap feature 3
Notably, Cook said that Epic Games' desire for Apple to let developers offer their own payment systems in apps "would make the App Store a flea market":

At the heart of the Epic complaint is they'd like developers to each put in their own payment information. But that would make the App Store a flea market and you know the confidence level you have at the flea market.

The volume of people going into such a market would be dramatically lower, which would be bad for the user, because they would miss out on the innovation like we just heard with the four developers. And the developers would be left out because they wouldn't have a huge audience to sell to. So nobody wins in that environment.

Apple's App Store Review Guidelines require apps to use Apple's in-app purchase system, with direct payment systems forbidden.

Cook said he is confident that Apple should prevail in its lawsuit against Epic Games, so long as it is able to communicate the facts clearly. The U.S. bench trial is scheduled to begin May 3 in Northern California federal court.

Cook also revealed in the interview that Apple reviews 100,000 apps submitted for review every week and rejects about 40,000 of them. He said that by curating the App Store, users have "a safe and trusted place" to discover apps.

Timed with Cook's interview with the Toronto Star, Apple has issued a press release touting the success of the App Store in Canada. In the press release, spotted by the blog iPhone in Canada, Apple said the App Store now supports more than 243,000 jobs in Canada and added that developers across the country have generated more than $2 billion CAD in total earnings since the App Store launched in 2008.

Popular Stories

iPhone SE 4 Thumb 1

iPhone SE 4 With Apple's Own 5G Modem 'Confirmed' to Launch in March

Tuesday November 19, 2024 12:12 pm PST by
Barclays analyst Tom O'Malley and his colleagues recently traveled to Asia to meet with various electronics manufacturers and suppliers. In a research note this week, outlining key takeaways from the trip, the analysts said they have "confirmed" that a fourth-generation iPhone SE with an Apple-designed 5G modem is slated to launch towards the end of the first quarter next year. In line with previo...
airtag purple

AirTag 2 Rumored to Launch Next Year With These New Features

Sunday November 17, 2024 5:18 am PST by
Apple released the AirTag in April 2021, so it is now three over and a half years old. While the AirTag has not received any hardware updates since then, a new version of the item tracking accessory is rumored to be in development. Below, we recap rumors about a second-generation AirTag. Timing Apple is aiming to release a new AirTag in mid-2025, according to Bloomberg's Mark Gurman....
Magic Mouse Next to Keyboard

No, Apple CEO Tim Cook Didn't Say He Prefers Logitech's MX Master 3 Over the Magic Mouse

Sunday November 17, 2024 3:03 pm PST by
While the Logitech MX Master 3 is a terrific mouse for the Mac, reports claiming that Apple CEO Tim Cook prefers that mouse over the Magic Mouse are false. The Wall Street Journal last month published an interview with Cook, in which he said he uses every Apple product every day. Soon after, The Verge's Wes Davis attempted to replicate using every Apple product in a single day. During that...
Generic iOS 18 Feature Real Mock

Apple Releases iOS 18.1.1 and iPadOS 18.1.1 With Security Fixes

Tuesday November 19, 2024 10:10 am PST by
Apple today released iOS 18.1.1 and iPadOS 18.1.1, minor updates to the iOS 18 and iPadOS 18 operating systems that debuted earlier in September. iOS 18.1.1 and iPadOS 18.1.1 come three weeks after the launch of iOS 18.1. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. Apple has also released iOS 17.7.2 for...
at t turbo indicator iphone 16 pro max v0 8hrh7w5f3w1e1

AT&T Turbo Indicator Showing Up in iPhone Status Bar for Subscribers

Wednesday November 20, 2024 3:42 am PST by
AT&T has begun displaying "Turbo" in the iPhone carrier label for customers subscribed to its premium network prioritization service, according to reports on Reddit. The new indicator seems to have started appearing after users updated to iOS 18.1.1, but that could be just coincidence. Image credit: Reddit user No_Highlight7476 The Turbo feature provides enhanced network performance through ...
iPhone 17 Slim Feature Single Camera 1 Redux

'iPhone 17 Air' Rumored to Surpass iPhone 6 as Thinnest iPhone Ever

Monday November 18, 2024 1:07 pm PST by
In a research note with Hong Kong-based investment bank Haitong today, obtained by MacRumors, Apple analyst Jeff Pu said he agrees with a recent rumor claiming that the so-called "iPhone 17 Air" will be around 6mm thick. "We agreed with the recent chatter of an 6mm thickness ultra-slim design of the iPhone 17 Slim model," he wrote. If that measurement proves to be accurate, there would be ...
bug security vulnerability issue fix larry

Make Sure to Update: iOS 18.1.1 and macOS Sequoia 15.1.1 Fix Actively Exploited Vulnerabilities

Tuesday November 19, 2024 10:52 am PST by
The iOS 18.1.1, iPadOS 18.1.1, and macOS Sequoia 15.1.1 updates that Apple released today address JavaScriptCore and WebKit vulnerabilities that Apple says have been actively exploited on some devices. With the JavaScriptCore vulnerability, processing maliciously crafted web content could lead to arbitrary code execution. The WebKit vulnerability had the same issue with maliciously crafted...

Top Rated Comments

macintoshmac Avatar
47 months ago
Did macOS with its open app system become a flea market then, by Tim’s standards?
Score: 30 Votes (Like | Disagree)
timborama Avatar
47 months ago
I love flea markets!
Score: 28 Votes (Like | Disagree)
Kkspire Avatar
47 months ago

Yeah, agree with others that Apple's choice of term to describe a lower-quality App Store perpetuates racist and ethnocentrist ideologies. The fact that no one in marketing/legal caught this illustrates the ubiquity of implicit bias.

Bad form, Apple.
So now it’s racist to say you never know what you’re gonna get shopping at flea markets. Hahahaha. Jesus. Ironically, you characterized him comparing to a flea market as a lower standard. :)
Score: 27 Votes (Like | Disagree)
sw1tcher Avatar
47 months ago

At the heart of the Epic complaint is they'd like developers to each put in their own payment information. But that would make the App Store a flea market and you know the confidence level you have at the flea market.

The volume of people going into such a market would be dramatically lower, which would be bad for the user, because they would miss out on the innovation like we just heard with the four developers. And the developers would be left out because they wouldn't have a huge audience to sell to. So nobody wins in that environment.
:rolleyes:


Having a 3rd party payment would be an additional payment option, Tim. An option. You know what "option" means, Tim?

Having a 3rd party payment option wouldn't make the App Store a flea market... no more so than a brick and mortar store having payment options aside from cash.

Does a brick and mortar store offering cash, check, debit, and credit card payments make it a flea market? No.
Does it dramatically lower the volume of customers going to the store? No.
Would it be bad for the customer? No.

The only thing that would be bad is Apple losing out on their 15% or 30% cut of the transaction. That's what Apple is worried about.

Want to talk about "confidence level," Tim. Let's talk about the confidence an app store user had in your App Store which lead to the loss of 17.1 bitcoins ('https://forums.macrumors.com/threads/bitcoin-scam-app-approved-by-apple-robs-iphone-user-of-600-000.2290123/') or of the App Store allowing scammers to rake in millions through the fake apps ('https://forums.macrumors.com/threads/scam-ios-apps-still-raking-in-millions-in-revenue-on-app-store-updated.2283962/').
Score: 27 Votes (Like | Disagree)
now i see it Avatar
47 months ago
They're all going to defend their monopoly with whatever convoluted logic they can dream up
Score: 25 Votes (Like | Disagree)
im2fast4u Avatar
47 months ago
Yes... I’m happy in the walled garden
Score: 19 Votes (Like | Disagree)