Judge grills Apple exec about whether company is defying order to enable more iPhone payment options

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By MICHAEL LIEDTKE (AP Technology Writer)

OAKLAND, Calif. (AP) — A federal judge on Wednesday questioned whether Apple has set up a gauntlet of exasperating hurdles to discourage the use of alternative payment options in iPhone apps, despite a court order seeking to create more ways for consumers to pay for digital services.

The verbal sparring between Judge Yvonne Gonzalez Rogers and the head of Apple’s app store kicked off a hearing focused on whether Apple is still steering U.S. consumers to its once-exclusive app payment system in defiance of an injunction aimed at promoting more choices that could help lower prices.

Gonzalez Rogers’ order requires Apple to allow app developers to display links to other options besides the company’s own payment system in the U.S. Apple makes billions of dollars annually from that setup, which imposes commission ranging from 15% to 30% on digital transactions completed within the most popular iPhone apps.

Apple’s app store and its commission system also is being targeted in another antitrust case recently filed by the U.S. Justice Department in a case alleging the iPhone walls off competition in a variety of ways that stifle competition and innovation.

Gonzalez Rogers often sounded frustrated and skeptical as she periodically chimed in during four hours of testimony from Matthew Fischer, the Apple executive in charge of the iPhone app store.

The tone of the judge’s questions indicated she is concerned Apple’s efforts to comply with her order have been primarily designed to protect the company’s profits instead of making it easier for iPhone users to switch to other in-app payment options, as she intended.

Gonzalez Rogers was particularly pointed as she grilled Fischer about whether Apple had deliberately made it more cumbersome and confusing for consumers to make digital purchases through alternative services.

“Other than to stifle competition, I can see no other answer,” the judge said as she tried to dissect the rationale for Apple’s design of alternative payment option system for iPhone apps.

Fischer maintained Apple is complying with the judge’s order while still trying to shield iPhone users from bad actors on the internet and enabling the Cupertino, California, company to reap a return on its investments in the app store and other mobile software.

Toward that end, Apple has introduced a new commission structure ranging from 12% to 27% on digital transactions initiated from within an app and completed on an alternative payment option. After Gonzalez Rogers said it sounded like Apple was still collecting a “windfall,” Fischer said the company expected its effective commission rate on digital transactions processed by alternative payment options to be about 18%.

“We are running a business,” Fischer said.

Apple spent more than two years trying to overturn the order that Gonzalez Rogers issued as part of a broader antitrust battle that the company won. The injunction requiring Apple to allow links to alternative app payments took effect in January after U.S. Supreme Court refused to review the case.

But Fischer disclosed Wednesday that Apple so far has only received and approved applications to display links to alternative payment systems from 38 apps so far — a fraction of the roughly 2 million iPhone apps available in the U.S. Fischer couldn’t specify how many of those apps engage in digital transactions when asked by Gonzalez Rogers, who ordered Apple to provide the number as the proceedings progress this month.

Video game Epic Games cites the muted interest in applying for in-app links to alternative payment options as evidence that Apple was still rigging the system in its favor.

Epic, maker of the popular Fortnite video game, is trying to force Apple to make more sweeping changes to accommodate alternative payment options after it unsuccessfully tried to persuade Gonzalez Rogers that the iPhone app store had turned into a price-gouging monopoly during a 2021 trial.

The effort is being supported by Facebook and Instagram owner Meta Platforms, Elon Musk’s X short-messaging service, music streaming service Spotify and long-time Apple rival Microsoft.

Apple’s current alternative payment formula “is guaranteed to continue extracting excessive commissions from developers” while also blocking them from steering consumers to other places where they could buy the same digital services for lower prices, Epic asserted in documents leading up to Wednesday’s hearing.

In its own pre-hearing briefs, Apple accused Epic of trying to get Gonzalez Rogers to micromanage its business in ways designed to boost the video game maker’s profits.

“Epic has repeatedly made clear that what it wants is access to and use of Apple’s tools and technologies without having to pay for them,” Apple argued.

The court hearings are scheduled to resume Friday when another top Apple executive, Phil Schiller, is expected to testify. Gonzalez Rogers hopes to wrap up the hearings by May 17, but told lawyers Wednesday it might take longer than that.

House quickly rejects Rep. Marjorie Taylor Greene’s effort to remove Speaker Johnson from office

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By LISA MASCARO and KEVIN FREKING (Associated Press)

WASHINGTON (AP) — Hardline Rep. Marjorie Taylor Greene stunned colleagues Wednesday calling for a vote to oust Speaker Mike Johnson, but lawmakers quickly rejected it.

Greene pressed ahead with her long-shot effort despite pushback from Republicans at the highest levels tired of the political chaos.

One of Donald Trump’s biggest supporters in Congress, Greene stood on the House floor and read a long list of “transgressions” she said Johnson had committed as speaker. Colleagues booed in protest.

It was the second time in a matter of months that Republicans have tried to oust their own speaker, an unheard-of level of party turmoil with a move rarely seen in U.S. history.

Greene of Georgia criticized Johnson’s leadership as “pathetic, weak and unacceptable.”

GOP lawmakers filtered towards Johnson, giving him pats on the back and grasping his shoulder to assure him of their support.

House Majority Leader Steve Scalise quickly moved to table the effort — essentially stopping it from going forward. The motion to table was swiftly approved.

The Georgia Republican had vowed she would force a vote on the motion to vacate the Republican speaker if he dared to advance a foreign aid package with funds for Ukraine, which was overwhelmingly approved late last month and signed into law.

But in recent days it seemed her effort had cooled, as she and Johnson met repeatedly for a potential resolution.

Johnson of Louisiana marched on, saying he had been willing to take the risk, believing it was important for the U.S. to back Ukraine against Russia’s invasion and explaining he wanted to be on the “right side of history.”

“I just have to do my job every day,” Johnson said Monday.

In a highly unusual move, the speaker received a boost from Democrats led by Rep. Hakeem Jeffries of New York, whose leadership team had said it was time to “turn the page” on the GOP turmoil and vote to table Greene’s resolution — almost ensuring Johnson’s job is saved, for now.

Trump also weighed in after Johnson trekked to Mar-a-Lago for a visit, the presumptive Republican presidential nominee giving the speaker his nod of approval. And Trump’s hand-picked leader at the Republican National Committee urged House Republicans off the move.

The move now poses its own political risks for Greene, R-Ga., a high-profile provocateur.

Forcing the vote could bring the House chamber to a standstill, as happened last year when eight Republicans voted to ousted Kevin McCarthy from the speaker’s office, and Democrats declined to help save him.

Ousting McCarthy resulted in a nearly monthlong search for a new GOP leader, and there is no immediate successor if Johnson is removed.

Twin City Model Railroad Museum celebrates 90 years this Saturday

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The Twin City Model Railroad Museum is celebrating its 90th anniversary this year. Since its inception in 1934 as a workshop club on St. Paul’s Ashland Avenue, the museum has evolved into an institution that honors the tradition of toy trains and model railroading.

From its early days to its current residence at 668 Transfer Road in St. Paul, the museum has been a beacon for train enthusiasts and curious visitors alike. It offers a number of interactive toy train layouts, LEGO displays, historical exhibits, as well as a space for hosting birthday parties.

To mark its 90th year, the museum is hosting a Model Railroad Hobby Show and Sale at the Minnesota State Fairgrounds’ Education Building on Saturday. The event will have an array of toy train layouts and vendors selling everything from model trains to railroad memorabilia. Families also can enjoy storytelling sessions by local railroad personality “Engineer Paul.”

Jackson Grant, age 4 of Seattle, watches train cars go by at the Twin Cities Model Railroad Museum’s new location. (Pioneer Press: Liam James Doyle)

Brandon Jutz, a spokesperson for the museum, says that while “the museum started as just a gathering of model-building enthusiasts, it has grown into a testament to the railroad heritage of the Twin Cities.”

Despite its 90 years in the books, “the museum remains a hidden gem, offering a haven of innocent fun and exploration for visitors of all ages,” but as a nonprofit organization primarily run by volunteers, its survival for nine decades is a testament to its need for community support.

Museum president Peter Southard said for many people, “the annual night trains events each holiday season have become a family tradition lasting generations.” The night train events this year will run from October to February. They feature the lighted model railroads and holiday decorations.

Beyond its exhibits and events, the museum serves as a bridge between generations, fostering connections and memories around the allure of trains, organizers say.

“It’s heartwarming to see families come together, sharing stories and experiences,” Jutz said. “Our museum isn’t just about trains; it’s about the bonds they create.”

For more information about this event and other activities, visit tcmrm.org.

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Ramsey County to close 64-bed Safe Space shelter downtown, relocate it to Luther Seminary

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As Ramsey County continues to wind down a century-old government building overlooking the downtown St. Paul riverfront, the county will close its 64-bed Safe Space shelter and relocate it across the city to Luther Seminary in the St. Anthony Park neighborhood.

The arrangement, recently finalized by the Ramsey County Board of Commissioners, follows the decision to close the Government Center East building at 160 East Kellogg Blvd. by the end of the year and position it for sale.

The structure, comprising 375,000 square feet on the Mississippi River bluffs just off the Robert Street bridge, previously housed a variety of county offices and a service center — a one-stop-shop for county services such as financial assistance — that recently relocated to the skyway level of the county’s Metro Square building on East Seventh Place.

Constructed in 1905, the nine-story Government Center East building is no longer open to the public. It carries an estimated market value of $20 million, according to county property records.

“County services have been moved out of the building,” said Symone Hubbard, a spokesperson for Ramsey County. “We’re in between phase two and three, of three, in terms of getting the county out of the building.”

Safe Space opened in 2017

Ramsey County opened the downtown Safe Space in the lower level of the government building in 2017, but at the time only during the winter months.

The county and nonprofit partner Model Cities expanded the service to 64 beds and longer hours, year-round, beginning in 2019, just months before the pandemic created a surge in the unsheltered homeless population as shelters limited capacity and families restricted couch hoppers. Safe Space has served as a “low barrier” emergency overnight shelter for residents who might otherwise be hard to place.

Only law enforcement and other authorized community partners can refer homeless individuals to the site who are found sleeping outside, in transit vehicles, skyways or other locations. In addition to an emergency stay, Safe Space offers housing assessments and other services.

Kizzy Downie, chief executive officer of Model Cities, said she did not expect the site to grow past 64 beds at Luther Seminary.

“We want to keep the capacity that we have now,” said Downie. “We’re working together with the county to make sure we have some options for transportation, and we’re talking with other partners about how that’s going to happen.”

Community town hall

To bring residents up to speed, officials from Ramsey County, the city of St. Paul and Model Cities will host a community town hall from 5:30 to 7:30 p.m. on May 21 at the Luther Seminary Chapel, 1501 Fulham St.

In addition to Downie, among the expected attendees is Ramsey County Board Chair Trista Martinson, St. Paul Deputy Mayor Jaime Tincher, St. Paul City Council President Mitra Jalali and Ramsey County Director of Housing Stability Keith Lattimore.

A website with answers to frequently asked questions is online at tinyurl.com/RamCOSafeSpace2024.

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