| Epic Games and Apple's courtroom showdown over competition in the App Store is winding down. The trial is expected to wrap up today, as both companies make closing arguments and field questions about their cases. Then they'll wait for Judge Yvonne Gonzalez Rogers to issue a verdict, which she hopes to reach by mid August. Rogers could make a decision with far-reaching implications for tech giants around the world, as lawmakers and regulators scrutinize whether Apple and other companies wield too much power and squash competition. Epic, the maker of the game Fortnite, is accusing Apple of running its App Store as a monopoly and abusing its power by shutting app developers into its closed system.  Apple CEO Tim Cook is questioned by Judge Yvonne Gonzalez Rogers during a weeks-long antitrust trial at federal court in Oakland, California. (REUTERS/Vicki Behringer) | Apple CEO Tim Cook fielded tough questions from Rogers during his Friday testimony. It was the first time Cook appeared at a trial. He argued that Apple faced competition and that the company's App Store policies are intended to promote safety and privacy. Yet Cook's testimony was overshadowed by a series of pointed questions from Rogers, who appeared to challenge some of the key points of Apple's defense in the case, my colleague Reed Albergotti reports. "It doesn't seem you feel any pressure or competition to change the way that you act to address the concerns of developers," Gonzalez Rogers said to Cook. She appeared to challenge one of Apple's key arguments that it competes with Google's Android operating systems and game-console companies such as PlayStation and Xbox in getting courting developers. Rogers spent about ten minutes – the most time she's questioned any witness – grilling Cook about the App Store's business model and questions. It was the best indication so far of how Rogers might rule after the trial concludes. She appeared to side with Epic on a program that Apple launched for small businesses last year. Epic, which argues the 30 percent App Store commissions charged by Apple are unfair, also criticized the company last year for reducing the commissions to 15 percent for developers who earn $1 million or less in app revenue. Epic said Apple was using the reduction to deflect antitrust scrutiny from regulators. Cook and Phil Schiller, another top Apple executive, have argued under oath that the pandemic was the main driver of the decisions. But internal documents exposed during the trial supported the idea that the company was trying to deflect attention. Gonzalez said competition did not motivate Apple to change the fee structure. "It seemed to be the result of pressure that was coming from investigations or lawsuits, not competition," she said.  Fortnite game graphic on a smartphone in front of Apple logo. REUTERS/Dado Ruvic/Illustration/File Photo | Cook also pled ignorance on several key questions about the company's business model. He said he couldn't remember how much Google pays Apple to remain the default engine on iPhones, and he later said he couldn't answer basic questions about Apple's advertising business. In one line of questioning he said the App Store was profitable, but that the company had not tried to calculate precisely how profitable. The trial could be just the beginning of a long fight. Whatever way Rogers rules, her decision is widely expected to be appealed by either side. Given the way U.S. antitrust laws are generally interpreted, Epic has an uphill battle to prove Apple behaved as a monopoly. The company has to show that Apple holds a monopoly in a market, and it abused it. Epic argues Apple does that by forcing app developers to use its payment processing system when they put apps in the App Store. It is illegal for a monopolist to tie one product or service to the sale of another. Apple argues that in-app payments and the store are all part of one service, iOS. If Apple is victorious, it could add greater pressure for lawmakers on Capitol Hill to update existing antitrust laws. The Senate recently hosted a hearing about competition in app stores, where senators heard from developers, as well as Apple and Google, about how they should change existing laws to better address digital markets. | 
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