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Apple commissions study to defend its App Store ahead of Tim Cook’s testimony to Congress

Apple has hired analysts to defend their App Store ahead of CEO Tim Cook’s testimony to Congress and after Microsoft’s president slammed the platform as anti-competitive. 

The study, commissioned by the tech giant, said the 30 per cent slice Apple takes from App Store transactions compares to those charged by Google and Amazon. 

Microsoft’s president Brad Smith is said to have told the US House antitrust committee that Apple’s App Store is anti-competitive in a meeting several weeks ago, Yahoo reports. 

The chief executives of Amazon.com, Apple, Alphabet’s Google and Facebook will appear before a Judiciary subcommittee on July 27 as part of an ongoing antitrust probe into the companies.

Economic consulting and strategy firm Analysis Group carried out the work for Apple and published its findings Wednesday. 

They wrote: ‘Our study shows that Apple’s App Store commission rate is similar in magnitude to the commission rates charged by many other app stores and digital content marketplaces. 

‘The commission rates charged by digital marketplaces most similar to the App Store, such as other app stores and video game digital marketplaces, are generally around 30%.’

Apple is facing anti-trust investigations in both the US and Europe. Spotify have already complained to the EU over the 30 per cent revenue cut the App Store takes.

Republicans on the U.S. House Judiciary Committee said Wednesday they want Twitter chief executive Jack Dorsey to appear at a hearing next week of major technology companies.

They said in a letter Wednesday that under House rules they were calling Dorsey to testify.

‘We believe there is bipartisan interest to hear from Twitter about its power in the marketplace, its role in moderating content on its platform, and the causes for its recent highly publicized security breaches,’ wrote Representative Jim Jordan, a Republican.   

The big four tech platforms are under investigation by a House Judiciary Committee panel, which is expected to issue a report in coming weeks, and the U.S. Justice Department. 

The Federal Trade Commission is probing Facebook and Amazon, and U.S. state attorneys general are looking at Facebook and Google.

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