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Tim Cook dismisses misguided DOJ lawsuit in the shadow of strong earnings

Tim Cook dismisses DOJ claims as "misguided"

Ahead of Apple's second-quarter earnings call, CEO Tim Cook addressed the ongoing antitrust lawsuit filed by the US Department of Justice, calling it "misguided."

Apple's second-quarter earnings, which surpassed Wall Street predictions, highlight the company's financial strength and resilience. In the same breath, CEO Tim Cook addressed the ongoing antitrust lawsuit filed by the US Department of Justice (DOJ), dismissing it as misguided and affirming it's not a distraction for Apple.

"I think the case is misguided, and we're going to fight it," Cook said in a comment to CNBC. " It's my job to make sure it doesn't become a distraction. And so, you know, if you look at what they're trying to do, is essentially use the law to define how we design products. And that shouldn't be like that."

The DOJ claims Apple has stifled competition by enforcing restrictive contracts and high commissions on developers, among other issues. However, Apple counters these allegations.

It highlights discrepancies in how market share is calculated — pointing out that Apple's share based on unit sales is less than half in the US, despite claims exceeding 65% revenue-based market share.

Apple defends its position, citing that 85% of developers don't pay any commissions, and the rest may qualify for a reduced 15% fee. The company also references its previous legal victory against Epic Games as a testament to the legitimacy of its commission structures.

The lawsuit also accuses Apple of limiting the functionality of competing apps and services through its control over APIs and other platform capabilities. Apple rebuts, asserting that its policies aim to protect user privacy, enhance security, and improve overall user experience, not stifle competition.

Moreover, adjustments in its guidelines have made provisions for more inclusive operations of services like game streaming on its platforms.

The case is not expected to come to a conclusion for years, and appeals will take even longer.