Issue 001 · DIDN'T FLINCH

Johnson's 50% commission gotcha

IssueNo. 001
The dateJuly 29, 2020

The call

DIDN'T FLINCH

The player

Tim Cook

The room

House Judiciary Subcommittee on Antitrust

Online Platforms and Market Power, Part 6

The play

What's to stop Apple from raising the cut to 50%?

Johnson

“What's to stop Apple from increasing its commission to 50 percent?”

Cook

“Sir, we have never increased commissions in the store since the first day it operated in 2008.”

Johnson

“There's nothing to stop you from doing so, is it?”

Cook

“No, sir. I disagree strongly with that.”

Cook

“There is a competition for developers just like there's a competition for customers. And so the competition for developers, they can write their apps for Android or Windows or Xbox or PlayStation. So we have fierce competition at the developer side and the customer side, which is essentially — it's so competitive I would describe it as a street fight for market share in the smartphone business.”

Steal this

Don't defend the number.

Put history on the table, one calm no.

Then name the other doors.

The room is stacked. Four CEOs on a screen. A House subcommittee hunting monopoly. Rep. Hank Johnson of Georgia has the clock, and he uses it the way a good examiner uses a clock: short questions that already contain the verdict.

He has already walked Cook through favored developers, Amazon Prime’s special rate, and the claim that Apple harvests payment data to decide which apps to clone. Cook keeps answering the question behind the question. Then Johnson throws the gotcha.

What’s to stop Apple from increasing its commission to 50 percent?

That is not a request for a number. It is a trap with the answer preloaded: nothing. If Cook explains process, he sounds bureaucratic. If he talks about “values,” he sounds like a press release. If he says “we wouldn’t,” the follow-up writes itself — but you could.

Cook does not take the number. He takes the history.

We have never increased commissions in the store since the first day it operated in 2008.

Twelve years. Same cut. He puts a fact on the table that the 50% hypothetical has to climb over. Johnson does not climb. He tightens the vice.

There’s nothing to stop you from doing so, is it?

Tag question. Designed for a yes. Designed so that anything other than yes sounds evasive. This is the loaded question the field guide is built for.

Cook does not yes-and. He does not hedge. He does not thank the congressman for the question.

No, sir. I disagree strongly with that.

Then he names the street. Not “the ecosystem.” Not “our developer community.” Android. Windows. Xbox. PlayStation. Four doors a developer can walk through tomorrow. He reframes the App Store from a gate into a fight, and he calls the fight what it is.

A street fight for market share.

Did the frame hold under later law and later fees? That is next week’s problem, or a different tape. This scoreboard grades the room in the room. Johnson came for a confession. Cook gave him a no, a date, and a map of the competition.

DIDN’T FLINCH.

Source · House hearing tape, 1:13:29

The tapes and the plays are free

The scoreboard, the drops, and the named techniques stay on the board. The $15 guide is the pocket shutdown if you want it on paper.