February 25, 2025 – Phil Schiller, a senior executive at Apple, testified on Monday that he initially opposed the company’s decision to charge fees for in-app transactions processed outside of its own payment system. Schiller, who currently holds the position of Apple Fellow and leads the App Store and Apple events, expressed concerns that such a move could strain the relationship between Apple and its developers.
Despite holding an honorary position as an Apple Fellow, Schiller remains heavily involved in the company’s affairs, reportedly working nearly 80 hours per week and responding promptly to emails and phone calls. With over 30 years of experience at Apple, he possesses extensive knowledge in both product and marketing aspects.
Schiller’s testimony, which lasted for three hours at the Oakland Federal Court, was part of a long-running legal dispute between Apple and Epic Games, the developer of the popular game Fortnite. Epic Games had filed an antitrust lawsuit against Apple four and a half years ago, accusing the tech giant of building an illegal monopoly around its App Store and generating billions of dollars annually through its then-exclusive payment system, which charged a 15% to 30% commission on in-app transactions.
Although U.S. District Judge Yvonne Gonzalez Rogers dismissed the monopoly charges, she ordered Apple to reduce barriers protecting its previous exclusive in-app digital transaction payment system and allowed developers to display links to alternative payment options. However, Apple’s subsequent solution still required a 12% to 27% commission on in-app transactions made through alternative systems, along with other obstacles that Epic Games believed were intended to discourage users from switching to other options.
During his testimony, Schiller revealed that he had initially opposed charging fees for payment options outside the App Store due to concerns about violating Judge Gonzalez Rogers’ injunction, the risk of payment collection, and the potential for creating an adversarial relationship with app developers, who are traditionally considered Apple’s allies. Despite these concerns, Schiller ultimately signed off on the commission agreement in January 2024, which was established by a pricing committee including Apple CEO Tim Cook and then-CFO Luca Maestri.
Schiller also confirmed that Cook pushed for the implementation of warning screens informing consumers about potential security threats posed by alternative payment options. The ongoing legal dispute hearing is set to continue until Wednesday, with Schiller’s subordinate, Carson Oliver, also scheduled to testify.
