[HN Gopher] Apple and Google must allow other payment systems, n... ___________________________________________________________________ Apple and Google must allow other payment systems, new Korean law declares Author : commoner Score : 1050 points Date : 2021-08-31 10:25 UTC (12 hours ago) (HTM) web link (www.theverge.com) (TXT) w3m dump (www.theverge.com) | exabrial wrote: | Quite simply, if we're going to allow monopolies (which is a bad | idea, but here we are), we need to trend towards a platform owner | cannot compete inside the platform they are collecting revenue | from. You get to own the platform and collect commission from | players, or you get to own the platform and compete inside of it, | but not collect commissions from competitors. | Dah00n wrote: | When the EU does the same things will turn for real. | weddpros wrote: | and they can, because there's not a single EU company with an | app store to harm. App stores are designed for profit, not | simply for our convenience. | | Imagine a government forcing AirBnb to let people pay hand to | hand to the owner of the apartment. It's the same issue, right? | perryizgr8 wrote: | No it is not the same issue. Airbnb doesn't have a say if I | make arrangements of my own with the host. We lose the | benefits and security provided by airbnb if we think that | airbnb's cut is unjustified. | | I only wish we (users and devs) could do that on Ios. | weddpros wrote: | I'm pretty sure the "arrangements" you're talking about are | against their TOS, except if they happen after your stay | booked on AirBnB... | perryizgr8 wrote: | That's ok. Airbnb is free not to do business with me. But | I am free to do whatever I want with my property as | owner. That is not the case when dealing with Apple. They | block usage of my own hardware. | commoner wrote: | Actually, Airbnb does have strict anti-steering rules just | like Apple and Google do. Several lines from their off- | platform policy: | | > In order to protect our community and business, the | following behaviors are prohibited: | | > Taking people off of the Airbnb platform for new, | partial, or future bookings | | > Contacting potential guests prior to booking on Airbnb to | move the booking off of Airbnb (ex: offering discounts to | book off of Airbnb) | | > Asking guests for contact information prior to booking; | all guest communications prior to booking must be on Airbnb | | > Asking for or using guests' contact information to settle | additional payments outside of Airbnb's platform; all | payments related to a guest's stay, including extensions of | a stay (and besides exceptions identified below), must go | through Airbnb (ex: using the Resolution Center) | | https://www.airbnb.com/help/article/2799/airbnbs- | offplatform... | | These rules are just as anti-competitive as the anti- | steering rules in the Apple and Google app stores, and | entrench Airbnb's market position. | perryizgr8 wrote: | I get that. But what will they do? I can still flout | their rules. Problem with iOS is that I can't do what I | want with the hardware I paid for. | commoner wrote: | Airbnb can ban you from their platform. This is more of a | problem for hosts (since Airbnb dominates the "home- | sharing" market) than for guests (who have plenty of | hotel and vacation rental options). | perryizgr8 wrote: | As a host, even if airbnb bans me, I can still do | whatever I want with my own property. That is not true | when it comes to iPhone. I am out of luck as a user and | also as a dev, my phone becomes a paperweight unless I | abide by apple's rules. | [deleted] | dannyw wrote: | I can switch to Vrbo or even just Craigslist. | | I don't lose out on reaching ~100% of customers, because | Apple and Google control access to effectively 100% of | customers and act like a duopoly. | blackoil wrote: | If AirBnb and X capture market in an duopoly, maybe govt. | will have to and should intervene. | dannyw wrote: | They wouldn't need to, because guests and hosts are welcome | to use other platforms that exist. | | Android OR iOS is an exact duopoly. | commoner wrote: | One research firm says that Airbnb and Expedia (which owns | Vrbo, Expedia.com, Hotels.com, and 5 other sites) control | 93% of the online travel agency market. That looks like a | duopoly to me. | | https://www.earnestresearch.com/airbnb-1-among-otas-hotels/ | dannyw wrote: | There is a big difference between computing devices and | marketplace services. | KptMarchewa wrote: | Uber allows cash payments. Don't see why would it be a | problem for Airbnb. | Hamuko wrote: | Right, because GDPR was enacted not because it was a good | idea, but rather because GDPR only harmed non-European | companies. | kzrdude wrote: | Gdpr was a jobs program for European web devs :) | jpambrun wrote: | It more like if airbnb could somehow prevent competitors (say | oxigenbnb) from reaching the internet. | zibzab wrote: | Nowhere near as bad as the Apple vs Samsung. | | IIRC, one guy in the jury had lost his business in a previous | court fight with Samsung. How was that not discovered during the | jury selection process?? | | Edit: this was not a popular comment.. | freakynit wrote: | Allow? That should be the norm. It should be "South Korea will | stop Apple and Google in restricting competing payments". | oenetan wrote: | https://archive.is/GkoA8 | eric4smith wrote: | Aka: the "Samsung Protection Act" | billpg wrote: | "Huh. Must be a rule about usury and credit card interest." | | "Oh, Korean, as in Korea." | mark_l_watson wrote: | A good regulatory trend. This is what governments are supposed to | do to support what I would call "safe and efficient capitalism." | | That said, Apple did cut in half the fee for almost all | developers and I installed Netflix, HBO, Prime, and Hulu apps | that work fine with my existing streaming media plans that are | direct to the providers. I forget, did Google also recently | reduce developer fees? It may be as simple as both companies | seeing the writing in the wall and are trying to get in front of | this. | dannyw wrote: | Apple only gives those exception for "Reader" apps. They'll | still ban you if you tried to do a Hey (from Basecamp). | makecheck wrote: | The Mac App Store gives a hint at what would happen if there was | any choice. The amount of software actually _available_ for the | Mac is far, far greater than what's listed in the store. | Furthermore, while some quality and notable apps are still in the | Mac App Store, _many_ well-known apps are not there. The number | of lousy apps is also extremely high every time I go to search or | just look at the front page, to the point where Apple does itself | no favors by even drawing attention to most of the apps on that | store (and it gives the impression that "most" Mac software must | be like this). | | If they simply listed all major Mac apps, e.g. linking to their | web sites or download links or whatever, they would _hugely_ | increase the value of the Mac platform and bring enough direct | benefit to developers to be worth some kind of fee (and of course | Apple gets $99 /year anyway). Instead, they tried to port the | same clueless, greedy, review-burdened scheme to that store, | layering completely unnecessary requirements on top (like poorly- | thought-out sandboxing). And _since developers had a choice_ , | they mostly said No. | kmonsen wrote: | Isn't this mostly due to burdensome requirements which means | most apps would have to remove features and the fact that they | don't support upgrades? At least those are the arguments I have | seen to not put the apps in the mac store. | dwaite wrote: | For many apps the issue isn't feature removal but sandboxing. | | https://panic.com/blog/coda-2-5-and-the-mac-app-store/ | | MAS requires sandboxing, distribution outside the store does | not. That said, Apple turns the 'default sandboxing' screw | another half turn with every release. | | In addition to subscription revenue, upgrades are possible by | releasing a new product version (e.g. "OmniGraffle 7" in MAS) | with a free tier ("read-only mode") and in-app purchases for | new users as well as upgrades from OG 6. | | I believe you can read purchase receipts within your | developer team to determine upgrades. | barredo wrote: | > The Mac App Store gives a hint at what would happen if there | was any choice. | | There's a choice of app store in Android and almost nobody uses | Amazon App Store, F-Droid, Samsung App Store and so on. It's | great that they can exist, but I don't think the Mac App Store | (which has been neglected since day 1) offers any guidance. | | People mostly use what they know or are giving by default. In | desktop, be it Windows, Linux or macOS, people aren't used to | app stores. | jandrese wrote: | The Amazon store used to have a killer feature where they | gave away "bullshit excised" versions of apps (the "Actually | Free" program), but sadly that has been discontinued and now | the Amazon Store is a completely pointless cut down version | of the Play Store. | | It's a shame because the old Fire tablets were pretty good | for kids, but now the malignant ad and micropayment cancer | has returned so it's no good anymore. | mauricio wrote: | I would disagree with the premise that the two stores are | comparable. The alternative to not use the Mac App Store is not | just financial, but also allows developers to bypass the | sandbox requirements. | | Whether or not Apple permits alternative payment systems for | iOS/iPadOS, all the apps will likely remain sandboxed. | webmobdev wrote: | Any OS feature should be in control of the user, not Apple | who can sell access to these features to developers in the | form of "entitlements". | judge2020 wrote: | Precisely: https://www.cnbc.com/2021/05/19/apples-head-of- | software-says... | tsycho wrote: | I don't think that follows, sadly. | | The evolutionary history matters a lot in these things, since | they set the culture and precedent on the platform. | | Macs and desktops started (or at least, became popular) as an | open environment where users obtained software directly from | vendors. iOS and Android (with the caveat that it has always | supported sideloading) started as closed systems, and the vast | majority of customers are used to getting their software from | the official app store. | | UPDATE: Fixed a typo | Reason077 wrote: | This is about allowing alternative payment systems for | purchases made in-app. | | Not necessarily alternative app stores / install mechanisms, | which is a separate issue. | ezekg wrote: | But they are tightly related. Russia just issued a similar | warning concerning iOS app distribution. | jonny_eh wrote: | I don't see how they're related at all, at least beyond | them being about the App Store. | jacobr1 wrote: | While they aren't _necessarily_ coupled, the bundling of | an app-store and cloud services such as payments, | notifications, and more, along with vetting (for security | issues) does seem of value. One can certainly imagine | third-party app stores including similar requires to | apple. I can imagine a Yandex store, Tencent store, that | both require you to use their payment platform if you | want to host an app in their store. In fact, being | integrated into a cloud-service-vendor's ecosystem might | a reason to chose a particular store in the same way the | Play and Apple are part of the decision today. | cactus2093 wrote: | Not only that, but if you ever have the option of buying a | software license directly from the developer or through the Mac | App Store, you usually get much worse terms from the Mac App | Store. | | You'll pay the same price, but instead of getting a license you | can run on unlimited of your own machines, or sometimes a fixed | number like you can register it to 3 machines at a time, you | can only install it on other computers that are managed by the | same iCloud account. I've learned this the hard way with a | bunch of productivity apps, if you want to use it on a personal | machine and a work machine in the same way you can easily | install all the free apps that you use on both machines, you're | out of luck if you bought it on the Mac App Store. I've ended | up re-buying a few different productivity tools over the years | that I made the mistake of buying on the Mac App Store first, | so that I actually had a portable license I could use that | wasn't tightly coupled to making my personal text messages and | iCloud files available on the same computer I want to use the | license on. You also can't install mac app store apps via | homebrew in a setup script or any kind of tooling you use to | manage the computer (maybe this is getting better with | shortcuts, but I'm not aware of a way to do it). | | If it's a cross-platform app, you pay the same price but lose | the ability to ever run it on Windows in the future if you buy | it from the app store. If it's one of the few AAA games that | support MacOS at all, if you buy on Steam you usually get a | cross-platform license and there will often be a bunch of | bundles that include extra DLC packs at a discounted price. | Once a game is a few years old it will start going on sale all | the time on Steam. The mac app store version usually won't go | on the same sales and usually doesn't have any bundles | available either. | | If you have multiple user accounts created on a computer, you | can't even upgrade a free app that a different user installed | via the Mac App store, even if your user also has admin | privileges. Only the same user that originally installed it can | upgrade the app even though the app is available to every user | on the machine. | | There's really no reason to ever install anything from the Mac | App Store, other than first-party Apple apps where you have no | other choice (like XCode, Garage Band, Keynote, Final Cut, | etc.) | makecheck wrote: | And it's such an incredibly good example of why anti-steering | rules should be illegal. Apple basically refuses to let apps | even _tell_ the user that such alternate licenses are | available! | | I hate anti-steering so much that I hope any future | legislation against it also enforces _retroactive_ refunds | for a significant period of time. Whatever money they have | made is basically entirely due to pulling wool over users' | eyes, and they need to be losing millions from this as a | punishment. | ComputerGuru wrote: | The Mac App Store came after there was a thriving ecosystem for | Mac apps online/organically and without a middle man, and it | provided close to zero value for developers on top of that. I | don't think it's a fair comparison. | giobox wrote: | I think there is still value in the comparison, but you are | absolutely correct. Any comparison must include this huge | caveat - the Mac had a third party software ecosystem for | over 20 years, well before OS X or a Mac App Store came | along. There simply was far, far less historical incentive to | adopt the macOS App Store than there was on iOS, which of | course mandated the App Store from the beginning. | | As a thought experiment: how many companies would leave the | official iOS App Store if offered a choice tomorrow? Epic Im | sure... but the experience on Android suggests to me not that | many. As with Android, I think a lot will still want a | presence on the default/"official" store regardless of the 30 | percent take. Don't forget Apple have also done the hard part | of getting a customer to enter their CC number to their | iCloud account for their store, removing an enormous amount | of friction in the sales process too. | mschuster91 wrote: | On the other side, as a customer I'm not exactly happy with | the prior ecosystem either: | | - every app has their own licensing system | | - I have to keep track of emails, license key files, logins | and other bullshit manually instead of having it | synchronized automatically at application install. Not to | mention I have a boatload of shop accounts that have | collected my payment and other personal data (e.g. postal | address) and whom I have to trust now that they keep their | data secure enough to not have it stolen. | | - for subscription stuff, I have to update payment details | for an awful lot of individual shops instead of having one | single place | | - refund policies vary _wildly_ , as is tax compliance for | foreign companies | | I agree that Apple and Google must be reined in - 30% cut | are absurd rip-offs, and the fact that stores can censor | legal content (e.g. anything marijuana/tobacco/drug related | or adult content) is troubling - but the central store | model does have advantages. | grishka wrote: | I believe there are many iOS apps that have never seen the | light of day simply because it wasn't at all possible to make | them compliant with the "review guidelines". | jandrese wrote: | There are entire categories of apps that aren't allowed by | the rules (although you do occasionally find some examples | in the store somehow). Emulators that can run ROM files are | a good example. You won't find MAME in the app store except | occasionally when someone at AppleHQ makes a mistake. Even | then it quickly disappears. | Joeri wrote: | Sometimes I try to imagine what the app store rules would look | like if apple had to abide by those same rules for all of their | own apps. I imagine the rules would be much more lenient, app | review a lot less error prone, and developers would be chafed | far less by those golden handcuffs. | | Pretty sure apple's developer documentation would still be bad | though. | mdoms wrote: | I agree, Apple should be broken up. | haswell wrote: | It's not necessary to break Apple up to implement a policy | that requires Apple to apply the same process to their own | apps. | | There are other standalone arguments calling for a breakup, | but agreeing with the parent doesn't automatically lead to | the conclusion that a breakup is required. | wolpoli wrote: | > It's not necessary to break Apple up to implement a | policy that requires Apple to apply the same process to | their own apps. | | It works in theory, but when the application team and | review team both report to the same CEO, the review team | will be pressured to bend the review policy. | haswell wrote: | Internal pressure is a fair concern, but is not a | foregone conclusion. If anything, unfair approvals of | Apple-developed apps would enrage the developer community | and shine even more light on the issue. | wins32767 wrote: | And if it's have the policy or be broken up the CEO will | be pressured to not let them bend it... | CydeWeys wrote: | The stick only works if you _actually_ get the stick if | it 's merited, though. So it could easily end up actually | being broken up under your proposal. | sunshinerag wrote: | or the users who don't like it can jump ship. really | nothing holding you back. | haswell wrote: | I work on a platform that provides its subscribers with a | store for 1st and 3rd party apps/solutions built on that | platform. | | Every app delivered on this store must go through the same | review process whether it's internally built or not. This has | led to healthy innovation on the app store and deep empathy | for the 3rd party developer. | | To be fair, it is possible to ship components that are part | of the core platform outside of this mechanism, but I think | just having one subset of internal development go through the | same review/approval channels as 3rd party apps has been very | positive for our developer community. | | I'd love to see the same thing here. | novok wrote: | So what is the platform? | kernoble wrote: | If I had to guess it would be something like Slack, | Shopify, Squarespace or some other SaaS platform that | needs to meet the needs of a hugely diverse customer | base. | [deleted] | FpUser wrote: | >"many well-known apps are not there" | | Not Mac user but I guess it is the same as for Windows. I have | some desktop products for Windows. The thought of releasing | them to MS Store had never crossed my mind. | ipaddr wrote: | You want Apple to pick 100 big apps and promote them? | | That would take away from the smaller person's chance. | | That list grows stale and complaints over who is on the list | starts. | arthurcolle wrote: | The arbitrary integer n = 100 is out of place, comparing your | example with GP's comment. The commenter is totally right - | the Mac App Store is just a gimmick in the same way that the | iOS App Store is a total gimmick to accumulate fees from app | developers. The fact that the review system is so broken is a | pure indictment of the model itself. | makecheck wrote: | Well honestly they should just have links to _all_ apps but | that would require the search engine to not also suck | (different discussion). | | It's just surprising to me that Apple didn't take such a | basic step to do this, when it seems it would so clearly | increase the value of the platform. It is why it is difficult | to believe anything they say about how much they "love" the | Mac...every single action they take to "help" the Mac | platform is just baffling. | realusername wrote: | Maybe that's just a proof that there's not much value created | by the app store if they can't convince developers to use it if | they had a choice. | webmobdev wrote: | Exactly - I've always pointed out that developers for the | Apple's ecosystem are being dumbasses. Why would you | willingly pay Apple money annually (and then a percentage of | your profit too) to develop on their platform when you | actually _add value to it_!? | | Platforms struggle and / or fail to be successful in the | market when developers don't support them. (You just have to | look at MS Windows Mobile, Samsung's Tizen OS, LG webOS, | Jolla Sailfish OS etc. to realise this). | | (I was one of these dumbass too once and bought a mac and | other apple devices to create apps on Apple's platform before | I realised that I was being a dumbass). | Andrew_nenakhov wrote: | Developers said no because the proposition was bad. | alberth wrote: | I wonder if Samsung (HQ in Korea) had influence on this | requirement. | | EDIT: why the downvotes? If you don't think Samsung had | influence, wouldn't it be more productive to reply and say so - | that way there can be a healthy dialogue on the topic. | joecool1029 wrote: | Oh, I absolutely think they had influence. LG already pulled | out of making Android phones as the hardware has become a loss | leader, no money in it for them. Samsung at least had the | benefit of almost totally complete vertical integration. | | You would have to be a fool to think Samsung doesn't want a cut | of app sales on their devices and as the most powerful company | in Korea with large influence over government, they'll get | their way. This was never about developers and it isn't a | watershed moment to be excited about (unless I guess you live | in Korea). | jollybean wrote: | You are being downvoted because you went against the populist | grain of the thread, that's it. Accept that a lot of HN voting | is just 'sided' and if you're on the wrong side of the flow ... | that's it. | | Just take a moment to reflect on your comments, if they are | reasonable and you're getting downvoted, and nobody is | bothering to respond, it's probably populism. It it was it is, | it's too bad, but don't fret about it. | whimsicalism wrote: | Excellent. I am in favor of governmental intervention to push | open standards, inter-operability, and public options for | monopolistic platforms (not social media, but, for instance, | Zelle or Venmo). | | Next do iMessage. | coldtea wrote: | When you have a legislative body and you can yield it, it's that | easy... | DavideNL wrote: | Finally, hopefully the EU will follow soon and the break the | oligopoly (or whatever it is.) | throwawaysea wrote: | This needs to be taken much further, to allow alternate app | stores, as well as direct installation of apps. People must be | allowed control and ownership of their hardware. | chrisshroba wrote: | Is an "up to 3%" fine enough to make these companies relinquish | their 30% Apple/Google tax? | Tomte wrote: | Apple sells expensive phones, tablets and computers. 3% of | South Korean revenue (all revenue, not just app store fees) | should be massive. | [deleted] | EricE wrote: | Good. I once bought into the gatekeeping concept - except Apple | hasn't followed through with their end of the bargain. Scam apps | are still rampant - even dominating the recommended sections in | the app store. Customer service is abysmal - if you do go for a | refund it's a crap shoot as to if you will ever get a human | response. When they kicked Parlor for purely political reasons - | that was it. Time to force the gates open and let the market | decide. | [deleted] | jfoster wrote: | They should unbundle. At the moment, doing business on the app | stores entails so many things, but they can break them apart and | allow developers to purchase them individually: | | 1. Put your app on the store. (but only reachable via direct | link) | | 2. Have Gapple verify that your app does not represent any | obvious security threat. (or else warn users upon install) | | 3. Make your app appear in search. (organically) | | 4. Make your app eligible as a recommendation. (organically) | | 5. Use Gapple payments. | | 6. Have your app appear in search. (guaranteed placement) | | 7. Have your app appear as a recommendation. (guaranteed | placement) | | (and probably many others) | | I'm not sure how well that would go down with developers, but I | view it as a more honest way for them to create a developer | offering. If they want to then go ahead and bundle some of these | and offer a discount for developers purchasing more of them, so | be it, but unbundling allows developers to pick & choose the | value they want provided. | sadfev wrote: | 2. Verification is key! I don't want more garbage (there's | already plenty) in app stores. They should charge a flat one | time fee or for smaller developers give the option of higher | fee/transaction till the amount is paid and then revert back to | normal fees. | intricatedetail wrote: | Google shouldn't control the store and the search. The | incentives for kickbacks are perverse and such conflicts of | interests shouldn't be allowed. | swiley wrote: | How about getting rid of App Stores altogether unless they | follow an f-droid like model? (Selection of alternative repos, | Published source, declaring potentially unwanted behavior etc.) | justapassenger wrote: | You want to explain to your grandma how to get the right repo | so she can get WhatsApp? | noptd wrote: | Having to forward a link to family members every so often | seems well worth it to me. | squeaky-clean wrote: | You either overestimate your family's tech literacy, or | you have a household of people working in tech if you | think it's as simple as reading a link for the average | consumer. | idle_zealot wrote: | > reading a link There's nothing to read. Clicking the | link immediately prompts the user to add the repository | to their F-Droid installation. | swiley wrote: | I don't want my grandma using WhatsApp. The corporation | that owns it behaves pathologically as a matter of policy | and I have no idea what they'd try to do to her. | | So yes. That's a perfect example of how this would be an | improvement. | kobalsky wrote: | preventing your grandma from using whatsapp through | technological friction must be one of the worst ways to | handle it. | | this extremely selfish, I've seen whatsapp let old people | enjoy internet like we did as kids. | | if you want to be a responsible member of the tech | community at least take the time to educate your own | grandma. | smoldesu wrote: | Conversely, eliminating the friction required for Grandma | to unwittingly hand over her personal information isn't | exactly an altruistic response. It's a lose-lose | situation, you may as well just support the more open | platform if they're both bunk anyways. | benbristow wrote: | Doesn't F-Droid have quite a big repo configured by | default? | judge2020 wrote: | Depends on if Whatsapp still wants to abide by the | security/privacy requirements of being in an imaginary | Apple-operated default repo. | pessimizer wrote: | If I'm happy right now with Apple/Google management, the | way I would explain it to my grandmother is "don't change | anything, just use the default" or "pick [Apple/Google] | from the list." | | Why does everyone pretend like this is hard? | | ----- | | edit: The things I have a hard time explaining to my | grandmother are when she asks "How do I turn this off?" or | "Why did everything change and why can't you change it | back?" | raman162 wrote: | I don't think we can ever get rid of app stores but I am pro | multiple app stores per operating system. | | The only downside I see to multiple app stores is having to | download multiple stores to get certain apps, kinda what it | is like with purchasing video games on steam versus origin, | etc. That is although minor, still an inconvenience. | tacker2000 wrote: | The dominoes have been in place for a while, now they are slowly | beginning to fall... | alarz wrote: | > In a statement, Google defended its service fees, which it says | "helps keep Android free," | | Isn't Android an open source OS? Sounds like they're just whining | to me. | jollybean wrote: | First Domino Drops. | | Judges in some countries can reference rulings from other | jurisdictions. | | Politicians are surely taking note. | jdavis703 wrote: | I'll take the opinion that the "App Store tax" is better for the | broader economy. Most people who aren't VCs can't get a piece of | startups early on anymore. If I can invest in Google and Apple I | get a bit of exposure to pre-IPO and private tech companies. | stirlo wrote: | Finally. | | This is exactly how regulators should respond to the market abuse | of these technology monopolies. | | If they wanted to head this off all they had to do was pay a | reasonable amount of tax in the country where the revenue was | generated and offer a reasonable (single percentage) fee for | facilitating payments. | | They chose not to so they reap what they sow | laurent92 wrote: | What regulators should mostly do is provide rulings in 2 weeks. | Monopoly lawsuits have been threatening for 5 years and are | still in limbo, our entire West is in threadlock: Slow justice, | slow regulators, slow administrations, fast market grabs... | pyrale wrote: | Due process doesn't fit in 2 weeks, and I don't believe the | issue with monopoly law not being enforced is related to the | speed of justice. | ethbr0 wrote: | Slow justice and slow regulation are a feature, not a bug. | Premature either is more dangerous than delayed action. | | In hindsight, the correct time for regulation was probably | 2008 for Google (DoubleClick purchase and Android shipping | with "Android Market") and Apple (App Store). | | It should have been a clear line from hardware control -> | distribution control. And if regulators hadn't seen it, then | Congress should have drawn it for them in updated laws. | | Unfortunately, the world had a bit more going on that year. | beambot wrote: | Android was effectively launched in 2008, per Wikipedia: | "It was unveiled in November 2007, with the first | commercial Android device, the HTC Dream, being launched in | September 2008." | | In this case, I'm not sure how to square new innovation | (smart phones first launching in 2008) with slow | regulation. | stonemetal12 wrote: | No, the spec doc lists "Speedy trials" as a requirement. | Slow justice is no justice. | germandiago wrote: | one of the first regulations that make sense: more free market. | | As long as there are regulators with a lot of power there will | be incentive to corruption anyway. | | I like free competition. Something that Google and Apple were | trying to prevent. | | But putting all in the hands of an ever-increasing state is not | the way to go either. Though I gree with the decision. | dragonwriter wrote: | > one of the first regulations that make sense: more free | market | | State regulations dictating conditions to market participants | cannot make something more "free market". They can favor more | competition by artificially limiting the advantage of the | most successful competitors, but that's not "free market", | which is the _absence_ of market distortion by state | regulation, not the presence of only those market distortions | that you prefer. | | > I like free competition. | | No, clearly, you like competition with the leaders | artificially handicapped by the State, not _free_ | competition. Which may be a valid preference, but don 't | pretend its a free market with free competition. | MatekCopatek wrote: | Well, depends on your definition of free market. Wiki says: | | > In a free market, the laws and forces of supply and | demand are free from any intervention by a government or | other authority, and from all forms of economic privilege, | monopolies and artificial scarcities. | | So while your remark about state regulations isn't wrong, | the (grand)parent comment is clearly talking about the | second part of this definition. | | Whose freedom is the "free" bit about? Is it about Apple | being free to do whatever they want with their platform or | is it about me being free to buy iPhone apps from anyone? | oblio wrote: | 1. Network effects. | | 2. Information asymmetry. | | 3. Barriers to entry. | | Purely free markets only apply to toiler paper rolls, and not | even that. | vincnetas wrote: | So when you have Apple and Google (two gorillas) how do you | imagine "free competition" happening without state | intervention? | amelius wrote: | > This is exactly how regulators should respond to the market | abuse of these technology monopolies. | | A somewhat faster response would have been nice though. | alisonkisk wrote: | What are you talking about? They pay sales tax based on | revenue, and they provide a lot more than facilitate payments. | mrtksn wrote: | It's going to be a hell for the users and the smaller | developers. | | Devs will have to support multiple platforms, different API and | options. Also different legal arrangements would be needed as | each country has different laws and processes. Remember the | agreements and forms we fill for different countries when we | want to sell paid apps/features on App Store? I also can't wait | to pay account fees for many app stores and modify my apps to | fit specific app store rules. | | The %30 cut, for me covers this boring complexity. I'm | sceptical that the potentially lower commissions will offset | the added development and administrative costs. | | As for the users, people will start forgetting where they paid | what. They will get frustrated, blame devs etc. It would become | tiresome and many will be turned off the moment a payment is | requested simply because they don't want to go through the same | stuff multiple times. | | I despise platform fragmentations. Instead of telling companies | what they must do, I think the regulators should intervene for | market fairness, i.e. Apple&Google getting heavily fined when | enforce different rules on different developers differently or | compel them to accept an app in the App Store if they can't | clearly indicate which rule is being broken. | | I would like to remind you all the troubles we need to go | through to support just platforms: AppStore and Play Store. I | am NOT looking forward to start paying fees and do | development/Marketing work/Adjustments for Epic, Microsoft, | Oracle, T-Mobile, Vodafone etc. just to reach the exact same | users as of today. | | Edit: | | I, as a developer, don't want to deal with multiple platforms | and their management and fees. Please tell me if you are mobile | developer or is your opinion ideological. The Arguments so far | look like coming from people who have no real experience with | getting an app into the AppStore. | | How do you plan to sell Apps in the UK, France, Turkey, charge | VAT and pay it to the respective governments for example. How | do you plan to file your export paperwork in the US? How do you | plan to deal with compliance? | | Seriously, are there any indie developers here with hands on | experience? How do you handle international trade and taxation | outside of platforms like AppleStore? | sleepydog wrote: | I think what will happen is that most developers will offer | in-app payments with a discount if you don't pay through | Google or Apple, to reflect the lower cut that alternative | payment services would take. This should put pressure on | Google and Apple to compete with those payment services, | which is a good thing, IMO. | | It may reduce the revenue Google and Apple receive, but | honestly I think that could be a good thing. They both do | much more than maintain their OS. Both companies have suites | of apps that they develop in-house and offer for free. | onlyrealcuzzo wrote: | You realize that you don't have to deal with "boring | complexity" when you use plenty of other payment processors, | like Stripe, right? | | And instead of being charged 30%, you get charged a | transaction fee, plus ~3%. | mrtksn wrote: | It doesn't work like that. Here is the Stipe page with | description of what you need to do: | https://stripe.com/docs/tax/registering | | Essentially, you need to register with the authorities of | all the markets you would like to support. | | Different trade agreements with each country, different | documents, different language. | | So you pay %3 instead %30 and then give the rest to the | lawyers and accountants. | | Good luck with that. | Vespasian wrote: | Your app might only be targeted at a single country or a | single market with "easy" taxation rules across borders | like the EU. | | Companies do that all the time and if they see the value | of being available globally by paying apple 30% that's | fine as well. | | However right now we don't know whether such a service is | in fact worth 30% percent because Google and Apple | effectively prevent a competitor from offering lower | prices | mrtksn wrote: | Obviously everyone can do whatever they like, I am | pointing out the burden this puts on smaller developers. | | Suddenly, creating and distributing apps can get | prohibitive for smaller developers. | commoner wrote: | > Suddenly, creating and distributing apps can get | prohibitive for smaller developers. | | That's not true, because the law does not prohibit | developers from using Apple's or Google's current payment | systems. It enables more payment processing options (with | lower fees) without removing existing ones. Developers | can also choose different payment processors for | different regions. | mrtksn wrote: | It means that if those payment processors gain market | share from Apple I will need to support them to reach the | exact same userbase because if the users adopt using the | alternatives it is very likely that they will stop | bothering to upkeep their Apple payment methods. It | happens all the time and there's even API for it to offer | the users a grace period until they fix their payment. | commoner wrote: | If your customers prefer to use a payment processor that | costs you 3% instead of Apple's 15%/30%, then why | wouldn't you support that payment processor? You gain | more revenue and honor your customers' preferences at the | same time. | mrtksn wrote: | Because supporting payment processors is extra work(which | is requires technical and non technical skills) that can | go into development, that's why. It is something that I | would prefer to delegate, pay the due and forget about | it. | | What's so hard to understand that? Have you ever created | a product and made money from it? | commoner wrote: | By migrating from Apple's 30% fee to a payment processor | that charges only 3%, your revenue would increase by | 38.6%. The only way that additional revenue would not | make up for your development cost is if your revenue were | low in the first place. There are plenty of developers | who would gladly integrate another payment API for the | additional revenue. | mrtksn wrote: | My revenue wouldn't necessarily increase(unless maybe | price reduction drives the sales enough), my costs due to | Apple's commission will decrees and my development and | legal costs will increase. | commoner wrote: | Just to be clear, by "revenue", I'm referring to revenue | after Apple's or the payment processor's cut. | mrtksn wrote: | My landlord doesn't care. From his perspective, all that | matters is that if I make enough money to pay the rent. | He is not interested if my revenue after Apple's cut has | increased. | | If my net income decreases(because my costs increase more | that the revenue after Apple's cut increase), I am | screwed. | mbesto wrote: | > I am pointing out the burden this puts on smaller | developers. | | This already existed. You're saying that the 30% was to | cover this burden, but what other people are pointing out | is that this 30% isn't necessarily a true market cost of | doing business since there was never another option. | There is nothing stopping another entity (Stripe or | otherwise) from providing a service that covers this | burden similar to Apple. If it happens to cost 30% then | so be it, but we don't truly know the cost because its | effectively a monopolistic economic arrangement provided | by Apple. | | > Suddenly, creating and distributing apps can get | prohibitive for smaller developers. | | How so? It's not effected distribution. Apple will still | provide an option for a 30% cut. If more devs go to | another option then Apple may compete and this 30% may | even go down. This is a good thing for the consumer and | the developer. | yobbo wrote: | > I despise platform fragmentations | | It is fair to point out that "platform fragmentation" occurs | _because_ of the policies of Apple and Google, not because of | regulation. | | If they had some altruistic care for user/dev experience, the | platforms would be open and frictionless to begin with. Their | aim is to insert friction at all points of interoperability, | and remove friction inside of their own platform. | mrtksn wrote: | Nothing is altruistic. It's simply business and business is | about to get harder for smaller developers. | commoner wrote: | Smaller developers now have more payment processing | options in South Korea. In addition to Apple's and | Google's own systems, they can also choose from a wide | variety of third-party systems that charge ~3% instead of | 15%/30%. I don't see how this would be anything but a | benefit for smaller developers. | mrtksn wrote: | Do you have know-how on distributing apps and getting | paid for? This sounds to me like ideological talk. | | "We wouldn't need to spend money on cleaning staff if | everyone clean their door front." | | Yeah, sure. | commoner wrote: | I do, and your arguments in this thread don't convince me | at all. Is there something incorrect in my comment? | Developers went from having one payment processor that | charges 15%/30% to many payment processors that can | charge as little as under 3%. Revenue-wise, there is no | downside to having these additional options. | mrtksn wrote: | Where can I buy your stuff? | | I don't know if your money works differently from mine | but for me I get to own the difference between Cost and | Revenue. Revenue increase is not good if the cost | increase is higher. I doubt that the revenue will | increase, the costs will certainly. | | The costs consist of my time and the payments I make to | build and distribute my stuff. This will reduce the costs | that I pay to Apple but will increase the development and | legal burden. | sam0x17 wrote: | Users definitely want to have third party app stores. One of | the most obvious use cases for a smartphone imo, running a | GBA emulator, isn't even possible in Apple's ecosystem | because of the stringent app store regulations. How crazy is | it that my $1200 phone can't play pokemon red but a $80 linux | handheld (or any android device if you know what you're | doing) can. Simply pathetic. 9-year-old 90s me is laughing at | these pathetic devices of the future. | | Side note if Nintendo had played their cards right they could | have made the entire library of GBA games available in a | Nintendo smart phone app, like 10 years ago... | keithnz wrote: | I saw nothing saying you can't still use them. | mrtksn wrote: | Sure, you can do dev work for Windows Phone Store. That | doesn't mean that it's as rewarding as doing work for Apple | AppStore. | | The fragmentation will not open the floodgate for all the | users out there who were holding off because they didn't | want to use App Store or Play Store. It's going to be the | exact same userbase but there will be more gatekeepers to | deal with. | stirlo wrote: | > but there will be more gatekeepers to deal with. | | They're not mandating support for alternative payment | providers merely saying Apple and Google cannot prevent | you as a developer offering an alternative to your users. | Whether you decide to support alternatives is up to you | but when you can use stripe for a 2% fee or Apple/Google | with 30% how can you be worse off? | mrtksn wrote: | No one mandates to support AppStore or Google Play in | first place. That's something you do if you want to reach | the users of that service. | mbesto wrote: | From the article: | | > require in-app purchases | | You need to bifurcate the payment % from the selling of | the app itself and the in-app purchase. | | For iOS, the AppStore is essentially mandated to download | and sign an iOS app. No one is saying that you shouldn't | have some cost associated with getting that distribution | (since Apple is providing value there), it's more about | the cut they take for every additional fees once the app | is already downloaded. | Vespasian wrote: | Companies want to reach the users of the devices. | | Apple and Google effectively prevent you from doing that | without being in their stores. The fact that | "technically" you can install apps on android and | "technically" users can get an apple dev certificate / or | sometimes jailbreak their device are nothing more than a | single atom layer thick fig leaf. | | These two companies effectively have a duopoly on the | mobile phone market and act accordingly. | | Edit: Corrected to not attack the parent commenter. | mrtksn wrote: | No body is preventing me from doing anything, please stop | speaking for me. | | Please read carefully: I do have Apps in the AppStore, I | am happy with the business relationship with Apple and I | am not looking forward to be forced into establishing new | business relationships to reach the exact same user base. | keithnz wrote: | I'm not sure how you think you will have to do anything | different or be forced into something? your app can stay | the same, has the same presence. But, under this law, you | could choose to have micro transactions or subscriptions | where , if you choose to, you could use stripe, or some | other payment provider where you pay a much lower fee, if | you choose to. | Vespasian wrote: | I clarified that I did not intend to speak for you. Sorry | for that. | | You'll be in luck then because you will still be able to | use apples services without anything changing. This or | similar laws do not obligate you to offer options. | WesolyKubeczek wrote: | "Allow other payment platforms" is not the same as "Demand | devs to support them all", I don't know between which lines | you must have read it. | mrtksn wrote: | Sure, You can't have platform fragmentation costs if you | don't support platforms. | | You only support them if you want to reach the customers. | That's exactly the same as not supporting Android or iOS or | not getting into App Development in first place. | WesolyKubeczek wrote: | So, for example, if the bulk of the customers in Korea | might be using Samsung Pay, you might just want to keep | integrating with that instead of also having to provide | Apple mechanisms, and maybe restructure your price since | Apple imposes its tax? | mrtksn wrote: | Sure, I can do that. Let's take a look at it: | | 1) I need to learn and integrate Samsung's API or I need | to hire someone to do that for me. I need to maintain a | version of the app that works the way Samsung thinks it | should(how do you deliver and restore purchases might | differ from Apple). | | 2) Then I need to go through paperwork and payments that | will enable me to sell Korea software from UK. I haven't | look at the trade agreements between UK and Korea, I | guess the easiest way is to pay a specialist that knows | it. | | That's something that I would rather don't go through. | Probably it's not possible unless I make significant | money from it anyway. | WesolyKubeczek wrote: | Well, Korean government is likely to prioritize their | local developers. And their darling, Samsung. UK and US | have to jump through some hoops, sorry not sorry. | mrtksn wrote: | Why not compete on merits instead? | WesolyKubeczek wrote: | There's a Goldilocks zone in which something mostly | resembling free market can exist. Beyond that zone, | there's some old boys network running the show, where | who's married to whom, who plays <leisure sport for rich | dudes> with whom, and who's chums with whom are the | things that matter. | mrtksn wrote: | So the small developers are the old boys network? That's | funny. | | Let me tell you what will happen if that becomes the | case, there would be publishers that you pay so that they | release your apps in Korea and there would be large | companies with enough departments to handle the hops. | | The idea that this will benefit anyone but the large | companies is ridiculous. Don't you find suspicious that | there are no crowds of indie developers but giants like | Epic who make the noise about it? Do you believe that | Epic is an altruistic organisation? | ethbr0 wrote: | Developers (and users) deserve _choice_. | | If you want to pay 30% to Apple to take care of that for you, | then you should be able to. | | If someone else _doesn 't_ want to pay 30% to Apple, then | they should have that right too. | | I've lived through both fragmented platforms and unified | platforms, and I'll take the former any day. | | They're messy, but fair and dynamic. And critically, they | _evolve_ and allow new competition to emerge. | monkeywork wrote: | >If someone else doesn't want to pay 30% to Apple, then | they should have that right too. | | They have that right they can choose to not develop on | Apples platform. | simion314 wrote: | >They have that right they can choose to not develop on | Apples platform. | | This is the EXACT same choice you or Apple/Google the | company not to use electricity, nobody comes with guns | and forces you to connect your stuff to the electric | grid. I can be a business but not make a mobile app for | iOS and Google Store because I think this companies are | evil, I am "forced" similarly on how I have to use | electricity. | oblio wrote: | To go to Google's platform which is just Eurasia painted | a different color :-) | joshuaissac wrote: | > They have that right they can choose to not develop on | Apples platform. | | The same argument also applies to Korea. Apple has the | choice of allowing other payment systems, or they can | choose not to sell in Korea. | simondotau wrote: | > _If someone else doesn 't want to pay 30% to Apple, then | they should have that right_ | | That _right?_ Are you saying developers should have the | right to all of Apple 's stuff for free, no matter what? Is | Apple not allowed to distribute their tools and libraries | under a license of their choosing? | | Should we ignore licenses altogether? Perhaps I don't want | to pay the "cost" associated with use of a GPL-licensed | library in my proprietary application. Should I have the | right to just ignore the GPL license? | passivate wrote: | We need to re-define what 'rights' mean in a digital age. | The ideas of property rights from the 1800's are vaguely | applicable in digital contexts. | | Ultimately, we are the creators of the society we live | in, so if we don't think laws are working for everyone, | we should change them. We have tons of laws against price | gouging, preventing businesses from fleecing customers, | etc. Apple grabbing 30% of sales of a company is not | something I support. | jpambrun wrote: | This argument is nonsensical.. I should be able to use my | fully-paid-for device how I see fit. | the_solenoid wrote: | You can (I guess to an extent). But, you cannot use iOS | however you see fit - it's probably in that wall of text | you agree to every time it updates. | | I get all these laws etc, but they are all at the behest | of other big business who wants to take the ecosystem | apple made and profit MORE off of it. | | This whole thing does not help small devs, or consumers. | I would argue apples PR stance that it actively basically | harms consumers is 100% spot on. | | The problem may be that people in ios have grown to not | be looking over their shoulders for scams, but all of | this will just bring about that exact thing. | | The grift as soon as ios/app store opens up will be | insane. You can't stop it in an open platform, and again, | the average tech user is not at all savvy about tech. | | There are probably good solutions to this, but so far | nothing out in public is anything but self-serving of | already monied interests. | simondotau wrote: | Apologies if I wasn't clear. I'm talking about the | relationship between Apple and developers who are | building applications using Apple's proprietary software | libraries. | | I completely agree that consumers should have very wide | rights to the device they purchased. | seanalltogether wrote: | Should I pay Apple for the right to build a Mac app, or | Windows for using their desktop apis? Maybe I should have | to pay mozilla and google every time someone visiting my | website and I use a piece of javascript that executes in | their browsers? | simondotau wrote: | If Apple or Microsoft or Mozilla or Google wanted to, | they could have. They chose a different model because it | suited their business strategy. | | Whereas Sony and Nintendo _did_ choose that model for | their games consoles. | Dracophoenix wrote: | Historically, people had to buy developer tools like | compilers and assemblers for hundreds if not thousands of | dollars either directly from the company or through | retail channels if they wanted access to the inner | workings of their computer. Apple included. So the pay- | to-build model isn't new. As far as what "should" happen | is concerned, that'll be a matter of debate and contract | law if/when Apple changes its terms and if/when you agree | to them. | simondotau wrote: | Indeed. And Apple does have the benefit of prior art in | the case of games consoles which have--for the past 30 | years at least--required developers to accept some kind | of revenue share for the right to distribute software to | customers. | howinteresting wrote: | Is Apple advertising iPhones as game consoles? | | When I search for iPhone on Google, the top result is a | link to Apple with the text "Explore iPhone, the world's | most powerful personal device." | simondotau wrote: | Can you suggest why that would be relevant? It's not like | the software license model of general purpose computers | is enforced under law. | howinteresting wrote: | It would be evidence in antitrust proceedings to | demonstrate that Apple is not aligning itself with the | game console market but with the personal computer | market. | ethbr0 wrote: | Or maybe Google should have to pay Oracle for duplicating | the layout of standard Java classes. | simondotau wrote: | Indeed, though here we're talking about developers | literally including Apple proprietary code in their build | process. | ethbr0 wrote: | If Apple wants to license theur libraries and dev tools | at FRAND rates, I'd have no problem with them charging | for those. | | But pretending the current cut isn't supported only | because of their platform control is crazy. | | Form an open market for app distribution, and then see | what the market sets competitive rates at. | giyokun wrote: | Actually not really. Developers are just calling into | code that the user already paid for when they bought the | device. | oblio wrote: | And Oracle should pay IBM for having practically invented | SQL. | | And everyone using virtualization should be paying IBM | for having practically invented virtualization. | | Repeat ad nauseam. | CrimsonRain wrote: | Apple has no right to restrict any API usage in the iOS | that is running on MY hardware that I fully paid them | for. | mrtksn wrote: | Apple doesn't do that. The restrictions Apple impose are | on distribution(i.e. you can't use Apple's distribution | services to distribute your app to the users of that | service if Apple don't let you), you can do whatever you | like to your own device and Apple can't do anything about | it. That's why it's perfectly legal to jailbreak your | phone. | FireBeyond wrote: | That's splitting hairs. They do do that, exactly by | imposing restrictions on distribution. | | Your argument is: "You're free to write an app for | yourself, but Apple isn't restricting you from using | private APIs, they're restricting you from distributing | it using their resources, oh and they're blocking any | alternative distribution methods, too." | lotsofpulp wrote: | What does "fully paid" mean? Would that allow Apple to | sell hardware where they control API usage at a cheaper | price than a device where they do not control API? | simondotau wrote: | I'm not talking about restrictions placed upon the end | user, but rather on the developer who is distributing an | application which uses these libraries. If they're not | willing to accept the license terms for those libraries, | that is a license violation. | | Do you know who would agree with that? The FSF. They will | argue that an application built against an API licensed | under the GPL is a derivative work and therefore falls | under the terms of the GPL. | | This was the case back when Qt was quite infamously | licensed under the GPL rather than the LGPL. | White_Wolf wrote: | Would forcing Apple to make everything required to run | linux on Apple hardware available to all devs be fine | then? Just to keep things fair and allow for competitors | and such. Maybe force all hardware manufacturers to allow | OS selection when doing a factory reset? Libraries? I'm | allowed to use them without selling/distributing as long | as they are critical to run the hardware that I paid | for(as long as they are only used for said device). | Copyrighting/blocking people from reverse engineering any | piece of code that is needed for hardware to function | should be illegal in the first place. | | Edit: A few typos and such. | WastingMyTime89 wrote: | > Devs will have to support multiple platforms, different API | and options. Also different legal arrangements would be | needed as each country has different laws and processes. | Remember the agreements and forms we fill for different | countries when we want to sell paid apps/features on App | Store? I also can't wait to pay account fees for many app | stores and modify my apps to fit specific app store rules. | | The ruling force platforms to allow developers to use | different payment processors. It doesn't force developers to | use these processors. | | Digital payments predate app stores by a decade. It's mostly | a solved issue. | | > As for the users, people will start forgetting where they | paid what. | | It's just a charge on your bank account in the end. I'm not | sure the where is really significant. | | > I think the regulators should intervene for market fairness | | You must be happy then because that's exactly what they are | doing. | boudin wrote: | I think it's going to be better for users and developers. On | the ios store it will be possible to add a link to a website, | tell the user that an external registration is necessary for | apps that are companion app of a web service. | | For the case above, it should also be possible for customers | with one user account only to use ios apps. What I just say | above might seems to make no sense, but that's the current | user experience that Apple enforces us to provide. | | From a dev experience, I can only see thinga getting better. | If we can get to the point when an app store allows to | publish apps that can be built on something else than a mac | and with a good CI and CD, that could be a dev dream come | true. | | From a business point of view, it can only be positive, | having ways out of the random death sentenced decided | randomly by Apple and Google using their store obscure rules | and review process to kill apps. | | On android it's already fragmented in a way (Huawei has its | own store now that their phones doesn't ship with the google | layer). So it can just push more devs to take this into | consideration. | dmitryminkovsky wrote: | I very much agree that this app stores market abuse thing needs | to end, and I am also really glad to see that at least one | country is responding like this. | | > a reasonable (single percentage) fee for facilitating | payments. | | I want to point out, though, that the service Apple provides is | not merely payment processing. They offer total customer | management. Which, when integrated with their entire developer | offering (TestFlight, App Store, etc) is pretty neat. I've | integrated my app with Apple for iOS and then had to do it all | over again with Braintree of web. You might say that entire | exercise speaks to the inanity of the App Store monopoly, but | the experience illustrated for me how much more Apple provides | than just mere payment processing. You won't find the words | "chargeback" or "dispute" in Apple's docs, because they take | care of all that for you. With Apple, you don't have to program | UIs for changing subscription tiers or viewing transaction | histories. And many other things. | | Is it worth 30%? No. 15%? I don't think so. Should I have to | maintain and juggle different integrations for every app store? | Definitely not. But Apple's offering is decent and | comprehensive. It would be made much better if it wasn't a | racket that held developers hostage. Think App Store competing | with Play Store on Android devices. And vice versa. Now that | would be cool! | | I really hope similar legislation is passed in the United | States and EU. | no_wizard wrote: | I wonder if raising fees in the developer program would | recoup some of the cost of doing at least some of these | things. 99 dollars for an individual and 299 for a business | if I recall correctly, that's peanuts and hasn't been raised | in a very long time. I don't think asking for more is bad, | since it's a yearly fixed cost | MR4D wrote: | Asking for more will start to limit the number of | developers who develop for their platform. Probably not the | Microsoft's of the world, but tons of smaller ones. | | For instance, if you raised the individual's fee to $500, | then a bunch of people would opt out, either not developing | iOS apps, or just make a web app. Neither of those are good | solutions from Apple's point of view. | howinteresting wrote: | If the app/play stores allowed alternative payment | mechanisms, then third parties would have an incentive to | build out an end-to-end flow as well, possibly even better | than Apple or Google do (eg upgrade pricing, better cross- | platform support). | Analemma_ wrote: | Apple very pointedly does _not_ offer total customer | management. As an iOS developer, I don't know who my | customers are; I can't contact them; I can't offer them a | refund, demo, or promo code; I can't have any kind of | relationship with them whatsoever. It's infuriatingly archaic | and useless. Whatever that system is, it certainly isn't | "total customer management". | horsawlarway wrote: | It's pretty clearly "Total customer control" not | management. | | Apple has pulled off a _really_ nifty trick of convincing | (cough _abusively forcing_... cough) companies to concede | full control of the customer /business relationship to | Apple. | | From my point of view, you're not really selling anything | on the Apple App store - you're giving Apple the right to | resell your digital products. | | In exchange they keep all analytics data. They keep full | control of customer contact and communication. They dictate | the terms of the sale, including place and payment method. | They control everything. | | Your customer is Apple, and they are just as abusive to | their "vendors" (app developers) as Walmart is. | | Calling it a "Marketplace" is a sham - The core definition | of a "Marketplace" is --- arena of competitive or | commercial dealings --- And the Apple store is no more a | "marketplace" than Walmart. | dmitryminkovsky wrote: | > From my point of view, you're not really selling | anything on the Apple App store - you're giving Apple the | right to resell your digital products. | | In my understanding that that's the contractual | relationship the developer and user enter into with | Apple. | | Personally I think this isn't all bad considering it | provides a uniform experience for the user, which lowers | cognitive load for the user and might makes the user more | willing to purchase. Once they know what app purchasing | is like, they can confidently purchase more apps. And | they know that no matter who develops an app, in the | event of a dispute they will deal directly with Apple. | DocTomoe wrote: | That sounds like a problem, but as a customer, I see that | as a feature. I do not want to be mailbombed by everyone | who has ever written an app I used for some time in the | past. | jkestner wrote: | And there are other features that I'd like as a customer | that Apple will not let developers offer. More payment | options, for example. Why not have the choice of multiple | app stores and let the market sort them out? We'll see | the best ideas adopted by all. | makeitdouble wrote: | The other side of the coin is the app can't refund from | their side, nor stop your subscription or fire you as a | client either. They need to wait for you to do it, which | can brew complicated situations. | simonh wrote: | I suppose it's customer management in the sense that they | are not your customers, they are Apple's customers. Apple | is providing you access to sell your app to Apple's | customers through Apple's store. | dmitryminkovsky wrote: | This is true. I should have used the term "billing | management." The opaqueness you mention I like to think of | as a firewall between the developer and the user in terms | of billing. I can truly say to the user: "I'm sorry, but I | can't help you with that." Many times that's bad, many | times that's good, and not because I don't want to deal | with users but because I like when users have uniform, | familiar experiences that they understand. The clearly | divided responsibilities (developer provides software, | Apple provides billing) helps maintain focus on product. | mdoms wrote: | > They offer total customer management. | | No, they FORCE total customer management. | skrtskrt wrote: | > total customer management | | you mean end-to-end locked-in ownership of your customers | | You can offer total customer and management and compete on | its merits and price point, not by forced monopoly. | mafuy wrote: | I agree that Apple's system adds a lot of value. And that's | why I believe it can and should compete with other systems. | There should be no problem with informing users about other | payment options both in- and outside of an app. But Apple | chose to forbid this. And that's not ok. | ehsankia wrote: | Sure but the point is that developers should have the option | of rolling out their own solution if they don't need all the | features Apple provides or agree with the fee. This in turn | creates competition which may reduce rates all around. | judge2020 wrote: | The common argument against that is that the 30% also goes | to actually developing iOS - you could envision the margin | Apple makes on every iPhone as one that goes towards the | R&D costs of developing the hardware, while the post-sale | revenue goes towards the post-sale costs of developing iOS | (and all the updates they test/push out for 5+ years after | the device is released). | pessimizer wrote: | It's weird using the argument that it's a shell game as a | positive argument. "It's not a money grab, it's just a | hidden fee!" | vineyardmike wrote: | Apple admitted this wasn't true in a lawsuit. There were | actual internal convos about how they didn't need as much | money... | | > Separately, the documents show that in 2011, Schiller | suggested that Apple could "ratchet down from 70/30 to | 75/25 or even 80/20 if we can maintain a $1B a year run | rate," in terms of App Store commissions, since the 30 | percent commission rate would "not last forever." | | https://www.macrumors.com/2021/08/20/apple-sideloading- | plans... | judge2020 wrote: | It's not that they don't need more money, it's that, in | my opinion, they also shouldn't be forced to operate on | razor-thin margins. What is an acceptable profit margin? | There's no clear answer so you'd be reliant on a judge or | congress to determine that. | ThatPlayer wrote: | An acceptable profit margin would be based on actual | costs, not a static 30% which means paid apps are | subsidizing free apps or apps like Netflix and Amazon | that do not take payment on iOS. Charge based on | bandwidth/downloads, not on who is using their payment | processor. | vineyardmike wrote: | > Charge based on bandwidth/downloads, not on who is | using their payment processor. | | This obviously doesn't tell the whole story either. Some | apps provide utility to the end user but don't monetize | well. Those apps are valuable to have as a way to drive | people to use app store, and keep developers educated. | wvenable wrote: | > The common argument against that is that the 30% also | goes to actually developing iOS | | How were operating systems funded before vendors could | take a cut of every transaction? | judge2020 wrote: | They didn't receive updates. Now Windows pushes ads in | the OS as a mechanism of recouping the cost of developing | and testing updates for old hardware. | wvenable wrote: | Operating systems have been getting automatic updates for | over 20 years. And what 3rd party ads are in Windows? I | don't have any. | threeseed wrote: | Here is how to disable the many forms of advertising on | Windows 10: | | https://www.howtogeek.com/269331/how-to-disable-all-of- | windo... | | Also don't forget that there is a ridiculous amount of | user behaviour telemetry and metadata that Microsoft has | permission to use for any reason. | madeofpalk wrote: | This isn't a common argument, it's just Apple's argument. | dmitryminkovsky wrote: | Nothing like a business exposing its alleged cost | structure to try and justify passing on costs. It's the | worst argument. It's not even an argument. It induces me | to somehow be part of their business, when I'm not an | employee, board member or even a shareholder. It's TMI. | danieldisu wrote: | iPhone users pay the development of iOS, iphone users | want to use an iPhone in part because all these third | party apps. | | This is just them wanting more money, and according to | latest earnings they already make a lot. | orangepanda wrote: | > if [developers] don't need all the features | | Some "features" are seen only by customers, e.g., managing | all your subscriptions in one place. I can think of some | services that would LOVE making cancelling a subscription | more difficult. | | I don't care about apple's cut. Allowing sideloading | instead would have been a win win for everyone | diebeforei485 wrote: | Stripe Billing[1] only charges 0.5% for this. | | Apple's offerings may have been good when the alternative was | software sold on physical CD's in a store, but compared to | the alternatives today there is no way 30% is by any means | fair or reasonable. The 30% commission is essentially | monopoly rents. | | 1. https://stripe.com/billing | eigen wrote: | Looks like its a bit more complicated than that according | to the webpage. | | Stripe Payments [1]: 2.9% + $0.30 | | Stripe Billing [2]: 0.5% | | Stripe Invoicing [3]: 0.4% | | [1] https://stripe.com/pricing | | [2] https://stripe.com/billing/pricing | | [3] https://stripe.com/invoicing/pricing | diebeforei485 wrote: | You don't need both Billing and Invoicing. Invoicing is | for one-time payments (typically after a service has been | delivered), and Billing is for recurring payments. | | All in all, we're looking at $0.30 + 3.4% (or 3.3%). This | is clearly lower than 30%, except for very inexpensive | apps (~$1.29 or less). | lotsofpulp wrote: | > If they wanted to head this off all they had to do was pay a | reasonable amount of tax in the country where the revenue was | generated | | Like a donation? Or are these companies evading tax laws? | stirlo wrote: | I think we can all agree that transfer pricing and the Double | Irish Dutch sandwich were not intended to be used in the way | they have been by modern multinationals. | svdr wrote: | This seems to have ended: | https://www.bbc.com/news/world-57368247 | oblio wrote: | Want to bet that the end of this included a hidden grace | period to allow large corporations using them to: | | A) find another similar system | | B) put their internal bureaucracies at work to switch the | entire corporation to the new system? | | It's like stock market news, by the time it's in the | newspaper it's much too late, all the insiders have | finished their trades and you're the chump buying | overpriced stuff. | | We'll probably find out the 2021 latest scheme in 2031, | when it gets banned. | lotsofpulp wrote: | What is stopping the governments from changing the laws to | make it illegal? | | I do not understand the concept of expecting an entity to | pay taxes they are not liable for paying. | pindab0ter wrote: | Because that would be bad for 'het vestigingsklimaat'; | the branch/business climate. | xdennis wrote: | These companies paying them not to. | jtbayly wrote: | So... they _are_ paying money to the government that they | aren 't required to? | foepys wrote: | The problem is the EU's process which requires all | countries to vote unanimous on this. Ireland is vetoing | any change to keep being allowed to set their own tax | rates and underbid anybody else while still keeping | access to the EU market. In that regard The Netherlands | aren't any better by the way. | fabianhjr wrote: | They do that to pay proportionally less (not zero) and | the countries they are paying proportionally less to are | interested in being the fiscal hosts of those | multinationals. | [deleted] | criley2 wrote: | The issue is that the governments offering tax evasion to | corporations are smaller countries that use their evasion | schemes as a competitive advantage against larger | countries. | | The incentive for a big country like the US is to make | these companies pay their domestically accrued taxes, but | the incentive for a small country like Ireland is to | attract these companies to come open offices and do | business locally at all. | | These companies have tricks to avoid paying taxes, such | as creating a parent company in Ireland that owns all of | the intellectual property, then making the actual Apple | or Google in the USA rent the intellectual property from | that Irish parent for the cost of all of their revenue. | Thus to the US company, they paid 100% of their revenue | as the cost of doing business and have 0 tax. Then to the | Irish company, they can essentially launder this revenue | into being almost completely tax-free. | | For the record, the "Double Dutch Irish" has been closed, | but there will always be another Caribbean country or | looked-over European country willing to offer major | benefits to a multinational in exchange for an office and | some local hires. After all, why should a small country | care if a multinational isn't paying taxes to another | country far away? | lotsofpulp wrote: | > Thus to the US company, they paid 100% of their revenue | as the cost of doing business and have 0 tax. | | Why is the country that wants taxes not able to change | their rules to collect something similar to an excise | tax? | [deleted] | MomoXenosaga wrote: | America. Recall Washington crying foul when France wanted | a digital tax. | fighterpilot wrote: | It's a problem when small companies have to pay company | tax, and large multinational companies do not, merely | because the latter has the legal know-how and the funds | to achieve it. As an analogy, it'd be like a road worker | paying 30 percent tax on a $70k income and a company CEO | paying 0-5 percent tax on a $10m income. | | The necessary solution is obviously systemic change | rather than asking large companies to pay above what | they're required to, the latter would actually be a | breach of their agency duty and anyone who thinks | companies should do that are foolish. | | I don't know _what_ the solution is. Perhaps abolishing | company tax, which is my favorite proposal. Perhaps a | worldwide company tax as Biden is pushing for (which | concerns me for other reasons, even though I do admit it | would solve this specific problem). | lotsofpulp wrote: | > It's a problem when small companies have to pay company | tax, and large multinational companies do not, merely | because the latter has the legal know-how and the funds | to achieve it. | | Hence the question of why are countries not changing the | rules so the large multinational companies cannot achieve | it. | | > As an analogy, it'd be like a road worker paying 30 | percent tax on a $100k income and a company CEO paying | 0-5 percent tax on a $10m income. | | This seems unrelated to my question, but is there | anywhere that this is true? All the examples of this I am | familiar with in the US involve ignoring the fact that | the CEO is not getting $10m of cash income, otherwise | they would be paying a lot more tax than someone with | $100k cash income. Which is stupid and invalidates any | point trying to be made. | | If the argument is that society needs to start collecting | tax on wealth and forcing sales of assets, then so be it, | but it should be stated as such. | fighterpilot wrote: | "Hence the question of why are countries not changing the | rules so the large multinational companies cannot achieve | it." | | I don't know. Probably some combination of cronyism, | status quo bias, and the problem being very difficult to | solve? Also it wasn't really front of mind in a big way | in people's day to day political thinking in the US until | about 5 years ago. "but is there anywhere | that this is true?" | | It was a hypothetical, I was trying to provide a what-if | analogy. I don't know if it is true or not true in | itself. "If the argument is that society | needs to start collecting tax on wealth and forcing sales | of assets, then so be it, but it should be stated as | such." | | That's some people's argument, but not mine. My only | observation is that the company tax as it is currently | implemented is extremely regressive. I'm not against | regressive tax per se, but it's too regressive in this | case. If large and small companies paid the same flat | rate, I'd be pretty happy. How to achieve it, I don't | know. | mercutio2 wrote: | Large companies pay giant amounts of tax when they aren't | reinvesting all their earnings like Amazon was for | decades. | | Reinvesting earnings is a strategy available to all | corporations, large and small. | | Corporate income tax is not in any way shape or form | regressive. | | Crazily innumerate reporting on taxes paid by big | corporations leads people to believe straight up false | things about taxation. | moomin wrote: | Think of it like an invasive and experimental medical | treatment. You know the disease is there, but a lot of | the changes you could make would damage good tissue as | well as the bad. | muh_gradle wrote: | Agreed. Hopefully we see a growing trend on this. | jollybean wrote: | Good ruling, however, I think it's fair that if the app is listed | in a store, they can require that in-app payments are via the | store. For downloads from other sources, this doesn't have to be | a requirement. I don't think G&A should be obligated to showcase | products for which they don't receive the revenue as vendors | would simply shift the payment inside the app. | | A bigger ruling would be to require Apple to allow downloads from | other sources, a feature which exists on Android. I don't think | the security argument really holds, moreover, people should be | able to have the choice. | bloppe wrote: | This is going in the wrong direction. Government shouldn't be | imposing regulations on monopolistic app stores when competition | can naturally break the monopolies and bring them in line with | developer and consumer needs. Let there be multiple app stores, | charging developers competitive fees and implementing competitive | security and convenience features. Don't let the platform favor | any particular app store, or raise barriers to app mobility | between stores. See how long 30% fees and hostile policies last | when any developer can just upload their apps to another store | with minimal modifications, and any consumer can easily use that | store. | threeseed wrote: | > See how long 30% fees and hostile policies last | | And then see how the ecosystem degrades to the lowest common | denominator and we re-enter the Windows 95 era. | | Race to build malware apps, virus and malware checker apps to | prevent the malware etc. | 10000truths wrote: | That lowest common denominator _already_ exists in official | app stores. There are huge swathes of garbage apps that try | to scam you with expensive subscriptions /MTX, use shady ad | networks that push more garbage apps on you, ask for every | permission under the sun for no other reason than to collect | data on you, etc. | StreamBright wrote: | This has to happen in the EU too. | sam0x17 wrote: | Awesome, now let's see the U.S. pass a similar law please. | 57844743385 wrote: | The breaking of control of these companies has to go much | further. | | Businesses build on the platform and can be killed in an instant | by some arbitrary automated decision to kick the developer off | the platform with no recourse. | | That's completely unacceptable. | | Also, they must be made to pay tax. Why do you and I pay for | military education, government services education etc but they | pay zero? | | These big companies are thief kingdoms and parasites on society. | | Apple and google have had it good for too long. Something must be | done. | JoshTko wrote: | Unsurprising that this is happening in South Korea first as there | is a clear beneficiary that has strong government ties. | mromanuk wrote: | It's only bad if this benefits Samsung, opening an App Store | with high fees. Competition should lower Payment fees, now it's | a cartel or duopoly. | [deleted] | hamilyon2 wrote: | They could make up for that 3% with elevated fees from korean app | publishers and consumers. Then pretend law doesn't exist and | simply count that as operating cost in Korea? | [deleted] | stephc_int13 wrote: | Very good. | | South Korea is maybe less corrupt than most EU countries after | all... | fleaaaa wrote: | Given the history of payment process in SK, I doubt it.. it's | just other side of messed up system, likely worse. But this is | definitely a step up I guess. | [deleted] | andai wrote: | Maybe, or perhaps the government was "persuaded" by Korean | payment companies? Still, sounds like a net win. | stephc_int13 wrote: | Yes, Samsung or some other giant probably played a role | there. | | But this is long overdue, Apple and Google should have never | been allowed to take that much power in the first place. | xmly wrote: | Apply pay and Google Pay are both handy. I like using Apple Pay | now instead of typing credit card number. | tpae wrote: | This is a bit hypocritical from the South Korean government. If | you worked in IT in South Korea, you would know their payment | systems are complete garbage. They won't let you integrate with | anything else, and consumers have to use Internet Explorer with | ActiveX to be able to make any purchases | stale2002 wrote: | So, everything else that has happened up to now, could be | described as minor losses, for Apple and Google. | | This is not such a case though. This is a major loss for them. | | For all the hacker new commenters, who have been commenting on | this topic, for the year that the drama has been going on, and | were convinced that Apple and Google were going to win this | fight.... well you need to re-evaluate what made you think that. | | Because, the writing has been on the wall, for quite a while now, | for their iron grip on their app store payments. | | If it wasn't going to be the epic lawsuit, it was going to be a | different lawsuit in the US, or another country. Or if all that | didn't work, it was going to be laws such as this, that blow the | doors wide open, and spell doom for these closed systems. | square_usual wrote: | > For all the hacker new commenters, who have been commenting | on this topic, for the year that the drama has been going on, | and were convinced that Apple and Google were going to win this | fight.... well you need to re-evaluate what made you think | that. | | To the extent that I've seen this point on HN, it has always | been in the context that there is no law in the _US_ which | prohibits what Apple or Google are doing, and hence it would be | difficult for regulators to win _without_ new laws or rules in | place. I 'm not American, so I can't say whether those people | were right or not, but I think it would've been pretty | ridiculous if anyone said there would never be laws against it. | misnome wrote: | > For all the hacker new commenters, who have been commenting | on this topic, for the year that the drama has been going on, | and were convinced that Apple and Google were going to win this | fight.... well you need to re-evaluate what made you think | that. | | Or perhaps you need to go re-read the comments? I don't recall | people writing "Apple and Google are in the right and deserve | to win" as much as I recall people writing "Apple and Google | are wrong and deserve to lose" and "30% is unfair os they | deserve to lose", and people pointing out that the current | system does have benefits. | | I recall people saying that they don't think their behaviour is | outright illegal, or doesn't qualify as antitrust in the US. | Obviously regulation supersedes this. | | In fact, making regulatory laws to force changes in the way | they are behaving, implies that it's not illegal now, so seems | to vindicate the people saying that? | q-rews wrote: | I agree but I'm curious about how it will play out in practice. | Apple charges $99/year just to publish apps on the store and | then takes 30% of the payments. If forced, will they leave just | the $99 payment or will they change it to, say, "pay more if | you want your payment processor" or "you can use your payment | processor but you still owe us 15%"? | | Many platforms require fees to sell on them. eBay for example | has asked for a percentage for years, even if it did not handle | payments at all. | | Are Apple and Google going to be forced to offer the service | (the App Store) for free because of their duopoly? | Vespasian wrote: | They wouldn't be forced to offer their services for free. | | However laws can and do regulate what constitutes a "fair" | price for a certain service. | | In some countries the quasi/effective/total monopoly ISP is | forced to rent their last mile phone cables to competitors | for a regulated price. | | A similar thing could happen to Apple and Google with a | government agency deciding what they are allowed to charge | for their services of providing the app store and the OS. | | Or they could be forced to allow competing app stores with | the same privileges as their own (beyond what is | "technically" possible on Android). | | Either way it looks like they'll loose their iron grip over | on customers phones (in some countries at least). That's the | price of effectively monopolizing a market and getting very | rich doing it. | techpression wrote: | I will assume this will end up just how banking regulation ends | up, the banks makes the same amount of money (or more) and the | loss from regulation is made up somewhere else (higher fees, | worse interest rates, etc). | | Pay-per-download seems to be a very likely future for apps using | external payment systems, free or not (which is only fair, you | are after all leeching off the App stores in that scenario), | charged by Apple/Google to the developer. | munhitsu wrote: | In other words South Korea is asking for 3% digital tax. This | seems actually pretty low. | ewg4345h43 wrote: | Great news! Every country should do the same! and each OS should | also allow external app stores. | jimnotgym wrote: | In a statement, Google defended its service fees, which it says | "helps keep Android free," | | Now that is some brass neck, payments keep a service free! | Newspeak! If you pay me PS500k a year I will work for free. Give | me PS20k and I'll give you a free car. Unbelievable, well done | Korea | Despegar wrote: | People who believed the propaganda about "charging 30% for | payment processing" are in for a surprise when they pay Stripe's | fees but then realize they're still on the hook for | Apple/Google's commission. It will just be collected in a less | efficient way. | 015a wrote: | I was under the impression that the App Store was a value- | addition for iPhone customers. Its a reason why people buy | iPhones, after all! Apple's commission should be covered in | operating system fees, which of course there are none, because | its all rolled into the hardware, which of course costs $1400 | with 200% margins. | | Well, ok, maybe that's an extreme take. Short of that, | certainly, developers would possibly pay some kind of annual | fee to gain publishing access to the store? Maybe a setup like | this could work? Wait, (puts finger to ear) I'm getting some | new information, it turns out... they already do this? | | Yes, as changes like this roll out in more countries, | inevitably, their ability to collect commissions will get | "weird". Its their own damn fault! Apple and Google were the | ones who picked a rotten, cursed way to collect revenue. | They'll need to figure it out; its their lunch. | | How long has apt, snap, npm, whatever, ran with zero revenue? | Epic and Microsoft run stores at, what, 12%? Don't start with | me about how "they're incumbents, they have to price lower"; | yeah, they're pricing nearer to cost instead of using their | monopoly market power to justify arbitrarily higher prices! | Application distribution is not that hard. Its not that | expensive. Its a fucking GET request on an object that can be | easily CDN'd, with some light versioning on top; just think | about how many package managers Linux has, then tell me Apple | needs to make a billion bucks a year to justify keeping the ten | people who maintain it around. Its a value-addition to the OS | and for your users who paid $1400 for a new phone; not a line | of business. Anyone who says differently is trying to sell you | something (and Apple is _definitely_ trying to sell you | something). | ptspts wrote: | A possible outcome of this regulation: all Android and iOS | payments get disabled in South Korea, paid apps become | unavailable. | tjpnz wrote: | Such a move might embolden lawmakers in jurisdictions already | considering similar laws. | tester34 wrote: | uh, so what? | | I struggle to understand acting as if those things were some | incredibly important stuff just like water, internet, | computers, | | or something that nobody would risk losing e.g via standing to | fight against its vendor | | Maybe losing those will result in creating new, more open and | less vendor locking alternatives | dtech wrote: | I don't think that's likely. It would be a suicidal PR move. | | If _anything_ is going to shake up law enforcement and | regulators it 's these megacorps holding things hostage because | they don't want to comply. | krageon wrote: | Any action may have a hundred different potential results. | Simply calling out one of them (devoid of _any_ context, I | might add) is not useful conversation. | realusername wrote: | That would be complete suicide by Apple & Google though... | akmarinov wrote: | How so? They'll lose just the SK market, that's not even in | the top 5 of markets for them. | realusername wrote: | That would trigger a wave of countries who would like to | imitate that by creating local competitors. If they fail so | badly in korea, every country will want to replicate that. | amelius wrote: | Another possible outcome: apps with external payment methods | will end up at the bottom of the search rankings. | ryandrake wrote: | Or, a bold red message in the AppStore description saying | "WARNING: This app accepts payment through a scary, untrusted | payment system! You're likely going to be scammed! Are you | sure you want to download this potentially fraudulent app?" | swiley wrote: | It's not about the fees, it's about Apple dictating what people | do with the phones after they're sold. | cm2187 wrote: | Unless I misread the article, it doesn't seem to break the | monopoly on app stores, just on payments. I actually asked the | question on another thread if anyone knows. | pcr910303 wrote: | It's not usual for news on my country to be on top of HN. Very | unexpected. | | I'm guessing though that the South Korean market is be | significant enough for Apple and Google to not just pull out it's | business from South Korea and call it a day. I guess this is, in | some kind, a victory against the huge companies. | | But... personally I do find sad that this would be detrimental to | South Korean app UX. Stripe isn't a thing here, and most of the | home-grown web-based payment systems have... like super shitty UX | that require (on the desktop) native plugins running a server on | some bespoke port. It did come a long way since from when we were | the country that required IE6 for web banking, but the UX is | still not really there. | | I'm hoping that Apple will provide APIs for showing payment | screens and Apple will still control the ability to show all | subscriptions, cancel them in one single place, etc... but I | don't think Apple will ever do that. Unfortunate... | ricardobeat wrote: | Apple Pay is already available as an API, you can even use it | on the web. | | Indeed would be nice to centralize all subscriptions, we have | yet to see how they would interface with 3rd party payment | options. But on the whole this should be a win - if anything, | those competitors will have a strong incentive to improve their | UX. | jonny_eh wrote: | > home-grown web-based payment systems have... like super | shitty UX | | They now have a reason to make it better, since they can now | actually compete with Apple Pay and Google Pay. | rkangel wrote: | > I'm guessing though that the South Korean market is be | significant enough for Apple and Google to not just pull out | it's business from South Korea and call it a day. | | I think that's right. The next step would be for a large enough | market to have a similar law, and then they'll just have that | as their policy globally. That probably means EU or US. | PontifexMinimus wrote: | > That probably means EU or US. | | Or the UK, which has a larger economy than South Korea. | Although going after big tech is not, as far as I know, on | the radar of the UK government. | truth_ wrote: | Could things change if the Tories were to lose power? | cblconfederate wrote: | Traction brings improvement over time. SV companies enjoy | enormous first mover advantage and megaphone that pushes their | products to the masses early to capture them, and then iterate | on UX. | [deleted] | ClumsyPilot wrote: | "significant enough for Apple and Google to not just pull out | it's business from South Korea and call it a day." | | I always found this line of argument disingenious and | disturbing. | | Disingenious because it doesn't happen historically, so it | sounds like a tired threat | | Disturbing - are we saying we would rather kneecap our | democratic institutions, right or wrong, than live without | iPhones? | | We'd die to defend our lands and laws from demands of foreign | governments, but fold to demands of foreign megacorps? | threeseed wrote: | Companies pull out of countries all the time when changes in | the socio, political, economic and most importantly regularly | environment make their business untenable. | | Case in point: China or post-Brexit UK. | | You use this hyperbolic rhetoric to describe the situation | but it really is an every day occurence. | yuan_foundi wrote: | so right!! | astlouis44 wrote: | Hopefully this starts a domino effect in other countries passing | the same law. | | We have Epic to thank for this! | joecool1029 wrote: | >We have Epic to thank for this! | | More like the Republic of Samsung and Samsung Pay. | wdb wrote: | I am fine with them allowing other payment systems. As long its | not OR OR so if apps start to avoid using the built-in payment | solution of Apple and Google then I see it as a negative. | | I can't think of needing to use like Paypal to pay for in-app | purchases or something for app X and use stripe for app Y and use | iDEAL for app Z. In those cases its better to avoid the app and | that's even ignoring app developers getting your payment details. | vbezhenar wrote: | Are you ready to pay 30% premium for using Apple payment | system? | wdb wrote: | Well, if it makes it easy to cancel a subscription or get a | refund. Sure. And yes, if I don't need to use Paypal I am | happy to pay a 15-30% premium. | | I am worried that using other payment systems make it much | harder to achieve that. | vbezhenar wrote: | Last time I checked, Paypal has dedicated page to all your | subscriptions where you can just cancel them. | wdb wrote: | It's a horrible company that without reason keeps your | money hostage. I still struggling to get my money back | because you can't talk to a human | mrweasel wrote: | At this point: Yes, but only because I cannot imagine the | alternatives being anything but worse. | | That's not to say that I don't think it would be interesting, | and maybe it will be better in the long run. Personally I | believe it will result in massive amounts of fraud. | | Multiple app stores are also going to be terrible, either for | the developers or for the customers. Either you'll need five | different app stores installed, because Facebook, EPIC, | Google, Microsoft and others will be wanting their own store. | Or developers need to push their apps to every bloody app | store on the planet so they can reach all potential | customers. So now you need to pay multiple developer fees to | be in the different stores. | | Yes, 30% is a ripoff. Not allowing to charge for upgrades is | developer hostile. The App Store is a mess of low budget apps | and nonsense subscriptions, because Apple created a "race to | the buttom" environment where developers can't actual make | money. I'd rather see Apple fix their store, then governments | forcing Apple to implement solutions that will even worse. | musesum wrote: | Would love to offer NFTs of works that are both authored and | offered on iOS/Android. Would this be a first step? I don't know | how to do it otherwise. | janmo wrote: | 2 things that surprise me: - Why did it take so long? This is | clearly an abuse of monopoly power - The App Store is Apple's | biggest cash cow, yet despite Apple losing it's ability to charge | its 30% racketeering tax their stock is at an ATH. | mikehearn wrote: | I have a question about monopolies and market abuses. | | Apple released their phone in 2007, the App Store in 2008, and | in-app payments in 2009. During that time their marketshare was | fairly small, and it didn't start to really grow until they | expanded availability to the Verizon network in 2011. | | Right at launch of the App Store, Apple announced its sales | commission would be 30%. Then they extended that same fee to in- | app purchases a year later. At the same time they set the rules | that third-party app stores were not allowed, and that third- | party payment processors could not be used. | | I'm mentioning all of this history to make this point: Apple made | these rules when they were not a monopoly by any definition. They | released these products, with these rules, into a free market and | let the market (both users and developers) decide which products | to use and which products to develop for. | | Now, obviously, between 2007 and 2021 the iPhone has been a wild | success. Its platform has grown in users and developers every | year. | | So in terms of the framing of "market abuse", at what point | between the launch of these rules and now did Apple cross that | threshold between free-market competitor who can legally control | their own platform to monopolist abusing its power? | | I'm asking this question not just to make a point, but because I | think it will be instructive for future companies to understand | where in the growth curve the rules they started with can | potentially cross over into being "abusive". | MrStonedOne wrote: | > I'm mentioning all of this history to make this point: Apple | made these rules when they were not a monopoly by any | definition. | | They are a monopoly for getting your app on ios phones and in | front of ios users. | | This is why bundling is part of anti-trust law. | | Bundling their app store as the _only_ way to install | applications on ios devices should have been stopped years ago. | rawgabbit wrote: | There are two issues at play here. | | First, with regards to the App store or Music store, Apple is | the Market maker. It controls who gets to sell Apps on their | market similar to how NASDAQ or the NY Stock Exchange controls | which stocks are listed. Korea is saying Apple you already | control the market, but you shouldn't dictate the payment | systems too. I expect Apple will start raising the fees it | charges to list Apps on their App store. | | Second, this article is about South Korea. South Korea doesn't | care about the historical context of the US. Korea is saying if | the Apple App store want access to South Korean customers, you | must play by our rules. This is not unlike the European Union | saying if you want to store data about EU citizens, then you | must comply with GDPR. | | For the past few decades, we had assumed there was a monolithic | global market for software apps. We are seeing now the | fragmentation of the internet and the software market as | countries assert their power over big tech. | bostik wrote: | 30% was highway robbery from the start. Pure and simple. | | It was merely a _less awful deal_ than most other indie | commission models, with sites like Kongregate and their ilk | demanding >80%. Against that kind of flaying and skinning, 30% | was an improvement! | | I've said it before. A very good agent, who actually works for | their client and arranges them with repeat lucrative contracts, | gets 15%. App stores, as gatekeepers to their walled gardens, | extort twice that. | | Btw - if they want to get into recurring payment scene, let | them compete with payment processor fee structures. For the | privilege of arranging trusted, mostly secured payments and | handling the back office accounting, 3% should be a damn good | ceiling. The payment industry is making money hand over fist | with that kind of cut. | simonh wrote: | >30% was highway robbery from the start. | | That was not at all obvious to anyone in 2008. It's a pretty | typical margin from the console industry, which was the main | point of reference at the time. Apple spent several billion | building the App Store infrastructure, the SDK and setting up | the review and payments system and it took years for App | Store revenue to catch up with the sunk investment and | expenses. Also practically everyone in the industry at the | time was saying Microsoft and Google would imminently wipe | Apple out of the mobile market. | | This is a tough one, I think 30% made perfect sense in 2008 | but does seem steep now. Apple makes huge profits on the App | Store, but it mostly seems to have happened by accident, | their original strategy seems to have genuinely been to just | break even and maybe make a modest margin, with the store | mainly just being a competitive advantage. The huge success | and profits have been a windfall. | | However that all happened and we are where we are. I don't | object to Apple's app store margins or IAP charges, it's | their product, their rules. | | I do think banning developers from informing users of how to | get subscriptions and such outside the store is foolish. | That's clear overreach. I see why they do it, otherwise | subscription services can cut Apple out and free-ride, but | they probably just have to take the hit. | grapist420 wrote: | nooo aha don't take away our profit margins haha it was an | accident we promise haha | bostik wrote: | > _It 's a pretty typical margin from the console industry, | which was the main point of reference at the time._ | | It may have been the closest equivalent but it doesn't make | it any less extortionate. | | If your neighbour's wife only ever goes out wearing | sunglasses to hide her two black eyes, it doesn't give you | the right to start beating yours. Even if it is less awful | than what the human trafficker living down the road does. | simonh wrote: | I just don't even. | mattl wrote: | 30% was the iTunes deal for apps. On iTunes songs were all 99 | cents and Apple got 30 cents. | jandrese wrote: | > Apple made these rules when they were not a monopoly by any | definition | | Didn't Apple have the only app store for iOS devices at that | point? For that matter the competing app stores of the time | (for Symbian devices) were dreadful and all of them are long | gone. | tsycho wrote: | You can do all sorts of "monopolistic abuse" on your platform | as long as it is small and inconsequential. No one cares, even | if it was illegal, though it mostly is not. | | But the rules and scrutiny changes once you become large enough | to be "considered" a monopoly i.e. once your decisions and | policies start affecting a significant portion of the | market/ecosystem, then your policies are going to be subject to | new regulation. | | Google supporting side loading from the very beginning was a | smart idea, even if its too complex and scary for the majority | of Android users. They should have done the same for payments. | 8ytecoder wrote: | Ask yourself - is there a difference between a small company | acquiring another competitor and a large monopoly acquiring a | competitor? They're both acquisitions. Same event at two | different market conditions attract two different reactions by | regulators. | | To answer your question - when developing for Apple went from | being a choice to a necessity to run your business. | yyyk wrote: | >So in terms of the framing of "market abuse", at what point | between the launch of these rules and now did Apple cross that | threshold between free-market competitor who can legally | control their own platform to monopolist abusing its power? | | When Apple launched Apple Pay (in 2014, not that long ago), its | App Store rules turned from dubious to outright market abuse by | using one market where it had a strong position to infiltrate | another very different market of payment processing (there are | other issues, but this story is about payment processors). | | By the way, 'monopoly' has little to do with it. It's about | market power, monopoly is an nigh irrelevant term to the issue. | criddell wrote: | There's no definable line that Apple crossed. It's a long, slow | transition. | jimnotgym wrote: | Didn't they become a monopoly when they stopped allowing other | app stores. From that point they were a monopoly on iPhone. But | being a monopoly is not enough to warrant action, it's abusing | the monopoly position that is market abuse, i would have | thought? | tshaddox wrote: | When did they ever allow other app stores? | yholio wrote: | You are framing this as if there is a magical "growth curve" | that must take you from an inovative startup to a 800 pound | gorilla that has a complete chokehold over the market. | | No, if regulators do their job, nobody gets to ask that | question because there is continuous competition. Getting to | that monopoly or oligopoly requires sustained effort from would | be monopolists, it's a strategy they have been executing for | more than a decade. And if you do that, you must expect there | is a moment where society says: ok, it's time to regulate it | and not let company X extract economic rent solely based on | market dominance. | simonh wrote: | Not at all, there was nothing inevitable about Apple's | success, many analysts, pundits and their competitors have | been adamant Apple would fail for the first decade or so of | the iPhone. After that these claims started looking a bit | thin. | | You're presuming that market abuse has occurred and that | market abuse is the only way to get popular, but I don't see | that's a given. Maybe people simply genuinely like iPhones | just the way they are, and maybe network effects just | legitimately lead to the most popular platforms dominating. | | Apple don't have a monopoly on the phone market anyway, they | only have 27% of the South Korean phone market. In the US | it's 65%, high but not a monopoly, but it only went over 50% | in 2020. | | What changed to make them a market abuser and when did it | happen, as you allege? That's the question OP is asking. | kbenson wrote: | They've expressed anti-competitive behavior from the | beginning, but it's advanced over time. It's the confluence | of factors that makes it particularly bad in Apple's case. | You can't chance the software (OS) on the device. You can't | run iOS on a different set of hardware. You can't run any | store but the App Store on iOS. You can't deliver software | to customers without using the App Store (or jumping | through hoops for very limited methods of getting it on | there otherwise). It's not that 30% was ever good or bad, | but that initially there was no competition, and at every | step Apple has taken steps to make sure competing is | extremely hard to do, by tying you to an entire ecosystem. | | Android is better in some respects, but is mostly happy to | not actually compete on a lot of levels because that would | possibly endanger the 30% industry standard. What we have | is two extremely large players, so large and so establishes | and in a market that takes so much money to enter that new | competitors are at an extreme disadvantage agreeing, even | if tacitly, that the fees for their stores are not | something they will compete on. | | That's not better than when they agreed they wouldn't hire | each other's employees (which they were punished for). It | benefits only themselves at the detriment of everyone else, | and through market manipulation. If they actually cared to | compete, we would see competition in store fees. | hutzlibu wrote: | "What changed to make them a market abuser and when did it | happen, as you allege? That's the question OP is asking. " | | There is no clear line or answer, as the topic is | incredibly complex. | | Electronic devices are not just gadgets anymore, but tools | to participate in modern life. We never had that situation | before. | | So by traditional meassures like absolute market share, | apple might not be a monopolist, but because of the massive | lock in and market dominance (of the luxory segment), with | all its implications, I surely would say they abuse their | power since a long time. But I also do not believe in | regulations as the magic bullet to really solve it, exactly | because the lines are too blurry. | fsckboy wrote: | abuse of monopoly power is a big area, there's no one answer, | but you're asking good questions. It's not really going to help | future companies though, because any company in a position to | think about this problem has the type and quality of attorneys | who already best know the answers. | | In any case, though, that's not what's going on with this | Korean law. Antitrust violations of existing law are generally | determined by courts and or regulatory agencies, whereas this | is a new law from a legislature signalling that they want to | encourage a competitive marketplace in this manner. Of course, | with lobbying and nationalism, it's quite possible that this | law was guided by powerful Korean interests or nationalist | parties who simply want to hobble foreign entities in favor of | local companies: still not an example of antitrust, except | possibly in the other direction. | | in any case, in the US it's not monopoly that's against the | law, it's that market power being used to abuse market | participants or influence prices. And there is no clearcut | answer, but there are "guidelines", for example if you control | 70% of a market and your major competitor controls 25%, you | have a good basis to say that you are not a monopoly. Notice | that Microsoft invested to prop up Apple when Apple was on the | ropes in the late 90's. That type of action shows how tricky | and pernicious these regulations can be, Microsoft gets the | excuse "we have a major competitor" and also benefits from the | success of the competitor. | | But that's the market share part of the equation. The | additional aspects are "can it be shown that the price of the | good is being manipulated upward?" So, Microsoft offering big | discounts to PC manufacturers to get them to exclusively offer | MS OSes on their platform: are those discounts abuse of the | market? | | I'm not a particular expert on this, there are many places to | quibble with what I've said, I'm just trying to offer the | flavor of what I thought when I read your questions. | | Oh, at what point did Apple cross the line? Has Apple even | crossed the line now? Is not really the question. By the time | enforcement actions are taken, companies are generally well | over the line. The real question is "how much can we abuse our | market power and get away with it before the clamor to regulate | us gets too strong for politicians to ignore? And what is the | temperament of the administration in office?" | guerrilla wrote: | > So in terms of the framing of "market abuse", at what point | between the launch of these rules and now did Apple cross that | threshold between free-market competitor who can legally | control their own platform to monopolist abusing its power? | | I'd presume that would be when they became a monopoly, which | may be seen as something that comes with new responsibilities. | "With great [market] power, comes great responsibility" would | probably make a lot of sense to a lot of people. We wouldn't | hold tiny entrants to the same standards as those who can set | prices, sue into dust or buy almost all of the competition. | sharmin123 wrote: | 5 Things To Check Before Taking Divorce Decision Or Separate: | https://www.hackerslist.co/5-things-to-check-before-taking-d... | mtgx wrote: | And they would've gotten away with it, too, if it wasn't for | those meddling kids! | | Seriously, though, I can't believe both Apple and Google thought | they'd get away with this. Of course it makes zero sense from a | consumer point of view to only allow one payment system. | elisbce wrote: | As an app developer, I'm shocked that people just don't get it. | | The 30% cut of in-app purchase that Apple/Google collected is NOT | a payment processing fee and has largely nothing to do with | payment services. It is primarily a way to ensure the app | developers pay a fair amount of "use tax" on using and benefiting | from the entire ecosystem, including but not limited to reaching | billions of users, covering the cost of developing and | maintaining the ecosystem, tools and cloud services, etc. | | It is really no different from paying income taxes to the IRS for | being a US resident and enjoying all the benefits of living in | the US. Whether it is fair to collect 30% tax is debatable, but | the idea is the same, collect a simple tax since it is extremely | hard to quantify all the obvious and non-obvious benefits that | are provided by the ecosystem. | | Since Apple/Google is not the IRS, they can't audit all your | app's income sources. If your app gives users a way to pay via | 3rd party payment services, you can effectively evade that tax. | And that is already happening with some apps TODAY, some of which | actually very big (e.g. some Chinese broadcasting apps). Do you | think this is fair to Apple/Google? | | So the issue here is not just about choices. If the government | allows 3rd-party payment services to be used by the apps, they | should at the same time provide a feasible solution to audit the | app income and negotiate a fair amount of use tax to pay the | ecosystem. | tristan957 wrote: | That is not what the 30% is at all. Apple charges its tax as | the $99/year fee everyone is required to pay to enter the App | Store. If $99 is not enough, Apple is free to increase it as | long as alternative app stores are available on iOS to keep | costs competitive for developers. | | Apple isn't worth defending. | stevespang wrote: | Step in the right direction which US politicians fail to do, | since they are all paid off by the usual suspects . . . . | tyingq wrote: | I'm wonder what method Apple and Google will use to comply. | Current GPS location? Market where the phone was sold? Cellular | carrer? Something else? | sebyx07 wrote: | Awesome news, but let's wait and see how this will turn out. | hosh wrote: | It makes sense since Samsung has its own payment infrastructure | (Apple Pay, Google Pay, Samsung Pay). Although those are for | retail payments for in-person purchases rather than app store | purchases, I can also see South Korea not wanting to have foreign | merchants controlling substantial markets, such as an app store. | | Those laws probably apply to Samsung as well, if Samsung deploys | its own app store. | hosh wrote: | To put it in perspective for those who havn't been following | what Samsung has been up to: | | - Samsung is a major conglomerate domestic to S Korea. LG is a | similar congolmerate | | - They make consumer appliances and durable goods, similar to | how General Electric in the US used to (washer, dryer, fridges, | dish washers, TVs) and are on their way to make them "smart" | and connected devices | | - They compete in the Android phone and smartphone market. LG | (another S Korean consumer devices conglomerate) had recently | withdrawn from that market. | | - They own their own cloud (Joyent acquisition). However they | are cutting back on their consumer cloud offering in Mar 2021. | | - They own world-class semiconductor fabrication facilities, | peers of TSCM and Intel. Samsung produces chips, memory for | themselves and other customers. They also produce milspec, | secure smartphones for the US military | | - They own an AI research team (Viv Labs acquisition, founded | by the team that created Siri and sold to Apple) | | - They have Samsung Pay | | In other words, Samsung has its own flywheel going and controls | a national stategic assets (semiconductor fabs). Maybe South | Korean law is intended to open the market more, but I think | this move is as much motivated as being able to project | economic power through Samsung as anything. | formvoltron wrote: | We devs need to somehow contact the Korean authorities to thank | them for this & to let them know that Apple's statement about | "fewer opportunities for devs" is pure nonsense. | [deleted] | Hamuko wrote: | How long do we have to wait for all those disaster scenarios | Apple and Google have been promising us to become true? I want to | mark a date on my calendar. | simondotau wrote: | At a glance, this law doesn't necessarily trigger any of the | disaster scenarios. This doesn't mandate any changes to the | security model and Apple could still adjust their terms to | require a revenue share even if they aren't the ones executing | the transaction--as a license fee for use of their software | libraries. | illuminated wrote: | I wonder if this would lead to an increased number of company | formations in S. Korea. My first impulsive reaction was to search | about their local formation and tax laws. | Hamuko wrote: | I imagine that this would only apply to users in South Korea. | illuminated wrote: | The text mentions developers, not just users... I assume (by | understanding the published text) they'd (Korean officials) | want to target any users of apps published by Korean | developers, no matter the location. | simondotau wrote: | Korean law cannot reach into sales performed in another | country--at least not without some fairly tenuous moves. | | Apple's phone market share in South Korea is a moderately | healthy 22% given the presence of strong domestic and | regional brands, but I've no doubt Apple would sooner give | up on South Korea altogether than have a weird law tying | their hands globally. | zaarn wrote: | They can't but the korean developer has a relationship | with Google or Apple that the government can reach. | | If Google forbade a korean dev from making an | international app with external payment provider, then SK | could very much punish Google SK for it. Doesn't matter | if the target users are in Europe. Read the GDPR, same | principle. | minhazm wrote: | > Doesn't matter if the target users are in Europe. Read | the GDPR, same principle. | | Actually this is not true. It only applies to companies | that are providing services to people physically in the | EU. If you're an EU citizen but you're in America, it | does not apply. | | > When the regulation does not apply. Your company is | service provider based outside the EU. It provides | services to customers outside the EU. Its clients can use | its services when they travel to other countries, | including within the EU. Provided your company doesn't | specifically target its services at individuals in the | EU, it is not subject to the rules of the GDPR. | | https://ec.europa.eu/info/law/law-topic/data- | protection/refo... | | https://www.dyspatch.io/blog/gdpr-location-or- | citizenship/ | cm2187 wrote: | Does it merely prevent monopoly on the payment or does Apple | still have full discretion on who is allowed to make an app | available to your smartphone? | superasn wrote: | I hope India too follows suit. | | Our government is notorious for it's heavy handed laws on tech | startups (read twitter, paypal, chinese apps, etc) maybe this | time it could be actually be for some good. | truth_ wrote: | Unlikely. Indian market is the furthest thing possible from a | free market. | | With Google's immense investments in Jio, the company of | Ambani, it is very unlikely. Ambani is in entente with Modi, | the Prime Minister. | Andrew_nenakhov wrote: | Please, next time do not forget about the requirements to allow | other marketplaces and push notification sources. | speg wrote: | I really hope they implement this somehow that allows the same | processes to exist. | | e.g., manage all subscriptions from one location, cancel | subscriptions without losing time remaining (hello Creative | Cloud!), and the entire parental control process. | wilde wrote: | Managing all subscriptions from one location is great, but | Apple already exempts themselves from cancelling subscriptions | without losing time remaining. I expect most of these to go | away as processors compete for app business. | djrogers wrote: | > Apple already exempts themselves from cancelling | subscriptions without losing time remaining. | | That hasn't been my experience - do you have a cite for that? | wilde wrote: | Ah, it looks like it only applied to the free trial of | Apple Arcade. https://ios.gadgethacks.com/news/psa-dont- | cancel-your-apple-... | speg wrote: | I just checked my Music and Fitness+ subscriptions and they | both say "If you cancel now, you can still access your | subscription until X." | [deleted] | dontblink wrote: | Would allowing for more App Stores fix this problem? It would | allow developers to simply withhold their apps from, say, Apple's | in favor of a one that has lower fees. | jjcon wrote: | I tend to agree, my current thinking is let gapple run the | store however they want but make them allow for other app | stores (that have first party access). Additionally prevent | them from anticompetitive practices to disrupt the formation of | other app ecosystems. | 404mm wrote: | Unpopular opinion: I like it the way it is now, from end user's | perspective. I don't want to share my payment info with apps. I | like all being in one place and handled by Apple. I'd be even ok | eating up the difference, if it meant it stays the same. | stephc_int13 wrote: | You'll always have that option available. | | End users won't lose anything in the worst case. | ilikehurdles wrote: | As a consumer, I'm pretty sad about this. I don't miss the days | of having to go through 5 different user flows to cancel 5 | different subscriptions. With iTunes, all of my purchases and | subscriptions are in once place. Losing that sucks. | passivate wrote: | I would think that the management of purchases and | subscriptions can support multiple payment methods, no? Like | VISA/PayPal/Apple Pay/etc? | | I can't imagine it would be difficult for Apple to implement | this for their stores. Maybe someone who works in this field | can chime in.. | summerlight wrote: | Apple can still keep it by lowering the fee to a more | reasonable level (like 10%) and convincing app developers that | the cost is worth paying for. I'm pretty sure they will do if | the UX is a priority over instant revenue. Not sure if this | reflects the reality though. | leshenka wrote: | I don't think you'll lose this. It will be like "sign in with | aplle" -- you will be able to use different purchase | algorithms, or apple pay. | xondono wrote: | Except that there's an incentive to force users into using | other services. | | If the choice is left to developers, each developer will | choose what suits him best. | androceium wrote: | What's the difference between that and the current | situation (forced to used Apple's payment system)? | | Isn't Apple just forcing everyone to use what suits them | best? | progbits wrote: | Well, if apple wants to make the experience nicer for their | users they can lower the cut which they take. | | It doesn't even need to be the same or lower than competition. | Since there are so many apps already integrated (and even in | future their API might be easier or more likely to be used by | app users) and nobody wants to go through the friction of | adding new ones they can still be slightly more expensive and | retain majority of the market share. | | But if they won't then I guess you will know it never really | was about protecting the user or whatever, just a cash grab | from walled garden. | yyyk wrote: | There's nothing stopping Apple from still managing | subscriptions. The difference is an extra call to the payment | processor, either done by the vendor or Apple. | josephd79 wrote: | And.. How does this effect me in the United States? | akmarinov wrote: | Well, A) not everything has to "effect" you, you're not the | center of Earth. | | B) switch your region to South Korea and bam - multiple | AppStores while in the US | MDWolinski wrote: | I'm wondering how this will eventually play out if most companies | start requiring Apple/Google to allow third-party apps to use | their own payment system. | | The commission fee that Apple charges, 30% is partially to cover | operating/marketing etc. Obviously, Apple makes a good profit off | the App Store these days, even though Jobs said he'd be happy if | it was break even at best. | | Here's an analogy I've been thinking on about this whole thing. | The iPhone (or whatever phone you want) is the equivalent of a | Walmart store. If you want your product to be sold in Walmart, | you have to send it to their distribution center (ie App Store) | and Walmart will handle sending that product out, etc. Walmart | will handle the credit card transactions, etc and pay you the | negotiated rate for your product (Yes, odds are Walmart buys your | product first, then sells it, but with credit lines, etc it's | almost the same thing). | | Does Walmart allow you to go in, put your product in the store | and sit there with a square device and sell your stuff? Amazon is | more analogous of physical to app in the sense that Amazon is the | transaction point but may or may not actually maintain control of | the product. | | So what's the end game? I suspect if Apple/Google has to allow | developers to collect their own fees, Apple will start charging | paid apps to be in the App store. | | They will continue to allow free apps to be shown, but if you | want to charge for your App either one time or subscription, | you'll have to pay an upfront fee to be listed. | | And that charge may depend on the number of downloads. | metalliqaz wrote: | I don't have to go into a Walmart if I want to shop. | ToruiDev wrote: | But at least for apple you already pay a 100$/year fee for them | to distribute your apps. | MDWolinski wrote: | I'm sure Apple will say that fee is to help pay for the | development of the developer tools. | giyokun wrote: | Because Apple doesn't need those tools internally to | develop their OS and apps? | sumedh wrote: | > If you want your product to be sold in Walmart | | No one is forcing you to go through Walmart. The problem with | IOS is that you are forced to go through Apple. A user cannot | pay, download and install the app directly from a developers | website. | ubermonkey wrote: | Nobody is forcing you to sell to iOS, though. | belorn wrote: | We can go up the whole chain and in the end the root | platform are nations. If you want access to citizens in a | country you got to go through that nations laws, and nobody | is forcing apple to sell iOS in Korea. | sumedh wrote: | That argument does not work when there are only two service | providers in town, Apple and Google. | ubermonkey wrote: | It works _precisely_ because there is an alternative with | less onerous rules. It works even better because the | alternative provider is BY FAR the larger player. | | Apple is a minority player in mobile. | ballenf wrote: | Walt Disney looked at Disneyworld/land as ideally break even. | Sad how they both lost the battle for vision to the | accountants. Disney parks now feels like a nightmare game with | IAP at every turn. You grind through ride lines or can pay to | skip them. Food, toys, etc that you see everyone else enjoying | and feel a nearly irresistible pull to buy. | IsoldesKnight wrote: | > The iPhone (or whatever phone you want) is the equivalent of | a Walmart store. | | The major difference here is that while I don't own the Walmart | store, I do own my phone. What is allowed to be sold in the | store is determined by Walmart, just as what's installed on my | phone should be determined by me, the owner. | MDWolinski wrote: | Ownership is a valid point. I'm not arguing either course, | I'd like to see the ability to be able to install Apps myself | just as I do on a Mac or PC mostly because I'm tired of the | forced puritism of companies these days. | WA wrote: | > The commission fee that Apple charges, 30% is partially to | cover operating/marketing etc. | | Then by all means, please charge me separately for these | things. Because I don't need them. Apple doesn't do marketing | for me, never promoted my app. People find my app through my | own marketing channels. | | Charge me roughly 2 % for In App Purchases just like Stripe and | PayPal. | | Charge me a traffic fee for whatever download traffic I cause. | This way, I at least benefit from my app being only like 5 MB | in size. | | If I want to be featured on the App Store, charge me. | | The rest like App Store listing? Covered by my $100 developer | fee. | joshstrange wrote: | > Charge me roughly 2 % for In App Purchases just like Stripe | and PayPal. | | This is so disingenuous and I'm so tired of seeing Apple's | fee pegged at 30% (even though it 15% for the VAST majority | of developers) and then turn around and pretend Stripe/PP | offer anything close to 2%. | | Paypal is 3.5% + $0.49 | | Stripe is 2.9% + $0.30 | | At low price points (you know, the price points that almost | all IAP/Paid App are at save for longer, like annual, | subscriptions) your fee is still substantial. | | If you are lucky Apple will create a special provision for | 3rd party payment providers that will provide | subscription/cancellation/refund/etc infrastructure. If they | don't do that then you can expect the above rates to be even | higher. 2% is only obtainable with a more bare-bones payment | processor so you will have to build quite a bit up and any | company providing full "app payment services" is going to | charge more than Stripe/PayPal. Heck, even the prices I | listed for Stripe are the lowest they go (unless you are | doing over 1.5M annually and qualify for bulk/volume pricing) | and if you want things like fraud protection that's extra. Oh | you want to calculate tax? Extra .5%. Fraud protections? $.05 | or $.07/per transaction extra. Chargeback protection? Extra | .4%, and the list goes on. | WA wrote: | - 15% is a rather new development. Most devs paid 30% for | many years. I paid 30% for over 10 years. | | - Stripe is cheaper in the EU for EU cards. 1.4% plus | EUR0.25 | | - Apple didn't even notify me about individual refunds for | what? 10 years? And it's still unreliable and annoying so | that I don't even bother, because I get like 3 refunds per | month. You could actually get a refund and still keep the | app for a long time. | | - People complain to me if they want a refund, but Apple | gives me no control. I have to redirect them to Apple | customer support. I am perceived as the bad person and this | costs me money in terms of customer support and I can't | even help people, because Apple wants to own the | relationship between app devs and customers. | | There are so many silly things about the App Store that | your quotation of 15% as a generous service is laughable. | | Edit: but yes, Stripe and PayPal are more than 2% in | reality, but far from 15% or even 30%, except for micro | transactions. | jamil7 wrote: | > Then by all means, please charge me separately for these | things. Because I don't need them. Apple doesn't do marketing | for me, never promoted my app. People find my app through my | own marketing channels. | | This, maybe it was different in the early days but they do | literally nothing to help you market your app until you've | already driven enough traffic to it yourself for them to take | notice. | | If you do get featured you get an email indicating that you | _might_ get featured and need to design and submit app store | banner artwork with a whole list of things that you 're not | allowed to display. | the_solenoid wrote: | All of these policies coming about are for the benefit of already | monied interests and do not help small devs, or consumers. | | I also take huge umbrage that the framing of this is just as | horrible as the framing of paying taxes in the US. | | People think, wrongly, that they make $100k, and have to pay 35% | of that to the gov. | | Wrong. You always only made $65k. There are studies that show | wages have always tracked with taxes (up to a point). | | Think of it this way - if your taxes went up to 75%, would you | still work for 100k? No. Your take home would track in a few | years (or sooner) to bring you back up to taking home 65k. | | --- | | So I am nexflix, I charge 9.99 and pay whatever entity processes | my payments like 1-2% if even. There is some other costs to this | - infrastructure and employees, probably a bunch more. | | Apple comes in and says "we build, and maintain a platform, that | costs us x amount to maintain, and we sell 100's of millions of | devices that utilize this platform, and provide fairly long-term | support for those devices. We want you, if you want access to | this platform, to pay y% of revenue derived from using this | platform. We will call this the apple tax. | | Is this fair? If you think taxes are theft, you probably think, | "no". But you are wrong. Taxes are the % of your "output" used to | keep the commons going. You know roads, bridges, laws, money, | military, water, clean air, safe food, yadda yadda. | | So the apple tax might be high, but it's mostly irrelevant. As a | small dev, you would never have the reach you can have with the | app store anywhere else. As a big dev, you look at where you can | generate more revenue and think "fuck apple, let's start making | legislation so I can use their platform but make more money | without paying into it." | | These "solutions" are just monied interests wanting more profit. | This should only be handled in a way that suits the interest of | consumers but they are not at the table. | malandrew wrote: | > Taxes are the % of your "output" used to keep the commons | going. | | The commons includes bombing other countries and waging | unwinnable wars? | | I have no problem paying taxes if they were actually used for | the commons, but only a fraction are used for the commons. Far | too much is going to benefit special interest groups such as | defense contractors, public sector employee benefits and | pensions that are far above what private sector employees get. | rrrrrrrrrrrryan wrote: | A related concept in economics is the Laffer curve [1], which | describes the tax rate that extracts the most money from the | population. If you tax everyone 1%, you collect very little | money, and if you tax everyone 99%, very few people will work | at all. | | Interestingly, the sweet spot seems to be in the mid-30s for | the population in aggregate (which lines up with Apple's fees | almost exactly), but is someplace around 70% for the highest | earners. This implies you could jack up the top marginal tax | rates to > 60%, and while most billionaires may grumble a bit, | they will not ragequit from the economy. | | [1] | https://en.wikipedia.org/wiki/Laffer_curve#Income_tax_rate_a... | xondono wrote: | What? | | Google and Apple are giving them devs access to something | _they_ built. That is not a tax. | | "Taxation is theft" is a very simple concept. If I don't pay my | taxes, people with guns come to my house, even if I don't use | public services. If you don't want to pay Apple or Google, go | develop for other devices. | dalbasal wrote: | The concessions Apple & Google made to "stave off regulation" are | informative in themselves: | | _It also agreed to let developers inform their users about | payment options outside the App Store, using the email addresses | that users gave them. Google said that it would only take 15 | percent of developers ' first million dollars instead of 30 | percent._ | | Combined with "competition for monopoly" elements like paying | Telcoms not to develop their own app stores or support 3rd party | ones, the whole thing stinks to high heavens. | | Once upon a time, "net neutrality" had wide support, and there | was understanding that it required constant vigilance. Google, | ironically, was a big defender of net neutrality... even as they | established their own dam immediately downstream of ISPs. | jaywalk wrote: | Net Neutrality just meant that Google got to shovel YouTube | streams onto ISP networks without having to pay. Let's not | pretend there were ever any noble intentions behind it. | ZoomerCretin wrote: | You think it's okay for ISPs to double dip on charging their | customers for access and then charging their customers' most | popular services (who are frequently competitors of the ISPs) | for the privilege of accessing their customers? Why should | any ISP think they can charge the source of my bits when I am | already paying them for the bandwidth? | | https://www.theversed.com/2754/riot-games-seek-court- | justice... | | Net Neutrality is not just about "shoveling YouTube streams | without having to pay." In one case, an ISP was deliberately | dropping packets for a popular online game (which, if you | didn't know, online games are known for requiring very little | bandwidth), and extorting the game developer with the loss of | ISP's customers if they did not pay up. | | ISPs are monopoly-abusing extortionists. They deserve every | bit of ire they receive. | ysavir wrote: | I think the post you're responding to is saying that | _Google 's_ incentives for supporting net neutrality were | self-serving, not noble. They weren't saying that ISP | behavior was fine. | jaywalk wrote: | Correct. | Hnrobert42 wrote: | What do you mean "without having to pay"? Google pays for its | connection to the internet, right? | jaywalk wrote: | No, in most cases they don't. | Hnrobert42 wrote: | Do you have any explanation in addition to @hyperion's | response? | jaywalk wrote: | Nope, he covered it. | hyperionplays wrote: | This. Google has amazingly helpful peering bilats with | most major ISP's globally, they don't have to pay for | transit nearly as much as the rest of us. they were a | staunch defender of net neutrality because it let them | avoid millions of $$ in transit. | Hnrobert42 wrote: | Why do Gooogle's peers charge Google less money? | jaywalk wrote: | Peering is free by definition. | kyboren wrote: | There is no exchange of value between the parties, but | there is definitely a cost to peering. You need to | physically get your data to the meet-me room, and that | isn't free. | sigjuice wrote: | how do I get free internet at home using this method ... | i hate paying comcast every month | jaywalk wrote: | Peering is a one-to-one relationship, not "Internet | access" like you're thinking. If you peered with Comcast, | for example, you'd only be able to reach Comcast | customers over that connection. A more "Internet access" | type of connection would be transit, which is definitely | not free. | cletus wrote: | Good. | | I've been saying this awhile, most notably when Apple (of course | followed by Google) introduced a discount on commission for | smaller developers. | | This is completely backwards. | | I know why they did it. They wanted some positive PR that didn't | cost them anything. Thing is, it's the larger publishers who are | going to lobby regulators and challenge things in court. It's | those same publishers who already have their own payment | processing systems where the 30% is pure overhead (minus the CC | fees). Small publishers actually get a lot of benefit for that | 30% (IMHO). | | So what Apple/Google should've done is give larger publishers a | volume discount. Of course this should force them into binding | arbitration and otherwise challenging the discount should void | that discount. | | Why? Because it changes the calculus for Epic, etc. Currently | that is: | | Option 1: Keep paying 30% | | Option 2: Leave the app store | | Option 3: Challenge the 30% cut in court | | Game theory will tell you that there is essentially no downside | to (3). Worst case you will be back on the app store at 30% or | will leave. | | But what if the options were: | | Option 1: Keep a volume discount and pay 10% | | Option 2: Leave | | Option 3: Challenge the cut and possibly end up paying 30% or | leaving | | Now they have something to lose. | | More importantly, it takes the sting out of efforts to lobby | regulators because now we're talking about the difference between | 1-2% (CC fees at volume) and 10% not 30%. | | I stand by my position that end users don't actually want | competing third-party app stores. That's just a usability | nightmare. But backend payment processing is something else | entirely and is the likely first step in breaking the | stranglehold. | tomc1985 wrote: | What an incredibly shitty contract to be forced to sign. | | Apple overstepped, and they are going to get reeled back. | oceanplexian wrote: | There's an entire cottage industry of jailbroken app stores. | You might argue that those using alternative stores are a | minority (1-5%), but the act of jailbreaking a phone is quite | challenging and we still have a lot of people doing it. If | iPhones were able to run third party stores I think you'd see | 30 or 40% of users opting in to that. | | Is it a usability nightmare? Perhaps. But device makers | shouldn't make that "choice" for their users. Likewise you | might not like the fact that your city has small businesses | instead of a single large warehouse store on the basis of | convenience and usability. But the public would not agree with | you and that's why we enact laws against anti-competitive | behavior. | elefanten wrote: | It's way less than 1% | | Waay less. | saagarjha wrote: | That's because Apple has waged war on these stores for over | a decade. The fraction used to be much, much higher several | years ago. | threeseed wrote: | They've merely fixed the security holes in iOS that | allowed these stores to exist. | | Unless you're suggesting Apple ignore them which would be | insane. | saagarjha wrote: | Perhaps the iOS security model is incorrect if it only | allows Apple's store to exist? | sudosysgen wrote: | In some third world countries going to a shop to get your | device jailbroken at least was quite popular. | spywaregorilla wrote: | > Game theory will tell you that there is essentially no | downside to (3). Worst case you will be back on the app store | at 30% or will leave. | | Worst case is you want to be on the app store at 30% but are | not allowed back in. | | > I stand by my position that end users don't actually want | competing third-party app stores | | I disagree. More stores bring more competition. Both in terms | of platform costs and in terms of promos for customer | acquisition. | | The epic game store is kind of crap, but their weekly free game | setup has offered some great content. I haven't given them a | single dollar and I've gotten a number of titles including | Control, Enter the Gungeon, Alien Isolation, etc. | | I say let them fight | skrtskrt wrote: | > Worst case is you want to be on the app store at 30% but | are not allowed back in | | If 30% cut of your revenue is big enough, Apple will let you | back in even if the two companies apparently just tried to | murder each other in court. | | Money talks. | | Companies keep massive clients and vendors that they are | locked in lawsuits with all the time, just look at Apple and | Samsung. | cletus wrote: | While technically possible I consider that incredibly | unlikely as a result of what's essentially a contract | dispute. What would Apple's cause of action be to terminate, | say, Epic from the App Store entirely? | | They sort of tried this at the beginning of the dispute when | they claimed anything running Unreal Engine was a security | risk and should be kicked. They overplayed their hand with | that one and a court blocked it. | | Game theory applies to Apple too. What's their upside from | banning Epic from the App Store? They face the risk that a | court may take that decision out of their hands. And while | they're doing it they are losing out on that 30%. | ocdtrekkie wrote: | The reason Apple and Google would never offer up a volume | discount for large publishers without legal action is because | it's 99% of the app store's revenue. Giving a discount to small | developers cost them nothing, giving a discount to Epic Games | and similar would cost them billions. | kryptiskt wrote: | Google's Project Hug that was revealed in the Epic trial | shows that they give discounts under the table. They just | don't want it to be known publicly. | ocdtrekkie wrote: | Project Hug is basically a bribe, rather than a discount: | It's not offered to everyone. Just developers who are | likely to strike out on their own. (EA and Activision both | being companies who have bucked the Steam train before, | demonstrating a willingness to launch outside of monopoly | app platforms.) | cletus wrote: | I think it's certainly heavily weighted to the big publishers | but 99%? I'm not so sure. | | But you know what's expensive? Private lawsuits, government | lawsuits, a court or legislature deciding the outcome, | compliance with legislation, compliance with consent decrees, | compliance with judgements, etc. | | The biggest issue is that third parties will end up deciding | the outcome. You're almost always better off heading off | government action by instituting the least bad solution for | you. | | What if the outcome of governent action is completely | independent third party app stores? Apple and Google | certainly don't want that. I would argue that neither do end | users actually. A vocal minority thinks they do but they're | wrong. That could happen if the wheels of the US or EU | regulators start turning against you. | fabianhjr wrote: | > So what Apple/Google should've done is give larger publishers | a volume discount. Of course this should force them into | binding arbitration and otherwise challenging the discount | should void that discount. | | Binding arbitration is a uniquely US-legal system thing that is | not legal elsewhere. (And imo it is better to have a more | neutral third party than an arbitration private firm that has | one of the parties as a recurring customer) | sam0x17 wrote: | It's also quite possible that if they had just set it at 10% | from the beginning across the board, there would simply be more | sales than there are now with 30%. I know a lot of apps make | users foot the bill for the extra 30%, with different pricing | if you buy not through apple. This just translates to lost | sales. The market is the market. | ren_engineer wrote: | The tech giants simply flexed their power too hard during the | last few years and now pretty much every country on earth | realizes they are a threat to national security in various | ways. They are getting sued, fined, or punished in almost every | major country now and they deserve it honestly | dogleash wrote: | >I stand by my position that end users don't actually want | competing third-party app stores. | | I have 9 chat apps on my phone. I just counted, and that's | skipping things like email and basecamp that I might have | included to inflate the number. It's not ideal, and the | downsides can be exaggerated for the sake of banter, but | overall the chat app situation is fine. Similarly, I wouldn't | mind having more app stores. | | I expect there'd be one all the free software hardcores believe | in, one that fills the role Steam does on PC, another with all | the "too hot for TV" content that Apple and Google won't touch | with a 10 foot pole, a few developer-publishers big enough to | get traction, and dozens of also-rans that nobody uses. Yes, | slightly more inconvenient like all the chat apps, but in | reality it'd also be fine. | | I don't think it makes sense to say what consumers do and don't | "want," because largely they don't understand the terrain the | App Store and Google Play put down. Ask people if they'd like a | 2nd store that lets them install apps that contain porn without | putting it behind hidden curtains in otherwise general-purpose | apps, then we might expect positive responses. Ask people if | they want an app store that contains more malware because the | app store monopoly provides a chokepoint to enact user | protection that on-device sandboxing can't, then we'd expect | negative responses. | andjd wrote: | Just wow. | | > Of course this should force them into binding arbitration and | otherwise challenging the discount should void that discount. | | So you want apple and google to act as even more monopolistic | bullies ... | | I see that you're taking this position as what you would do if | you were Apple or Google, not what is the best course of action | for all stakeholders. But you then opine that this is justified | because the status quo is better for consumers. | | The thing is, we already know that it's not. Apple and Google | allow third party payment processors for _some_ of their apps. | Would it be your best interests as a consumer to pay 40-50% | more then you currently do for Uber and GrubHub? There's a | reasonable argument to be made that those businesses simply | would not be economically viable if they had to pay a 30% | apple/google tax on every transaction. How many other apps or | services went under (or were never made in the first instance) | because Apple decided that their business needed to pay them a | 30% cut of everything. | | Which brings us to another salient point. Apple claims that | they need to charge their 30% cut to pay for the cost of | running the app store and for the developer tools they provide. | But if this is the case, why should Uber and Facebook get to | use them for free? | SeanLuke wrote: | I don't think he's saying that it'd be good _if_ Apple and | Google did that. He 's saying they _should_ have done that if | they had had their strategic thinking caps on. | mc32 wrote: | That's my take too on what poster is saying. | | Yet, it's not out of the ordinary to presume apple and | google have good strategists among the management ranks... | so what gives? What do we not know? | derefr wrote: | Presumably, that they already do volume | discounts/sweetheart deals with certain vendors. Apple | allows Microsoft to publish packages through their App | Store that install non-sandboxed apps, for example. I'm | sure they're giving them a discount as well. They're a | "strategic partner." Epic is not. | yunohn wrote: | Which apps does MS do this with? Office is a bundle, | right? | sam0x17 wrote: | The fact that these two things are different is the problem | with corporate America. The morally correct thing is always | the better thing for shareholders in the long-run, but | corporations don't see it that way. | BeefySwain wrote: | > The morally correct thing is always the better thing | for shareholders in the long-run | | Are you asserting that this is the case in reality, or | that we should strive for a society and economic system | in which this would be true? | sam0x17 wrote: | Both. I think that when corporations do exploitative | things, they are being short-sighted, and will eventually | suffer in the long run. | | And really what I would advocate for is stricter | regulations so we don't have to rely on the good will of | corporations in general. Their track record is terrible. | kernoble wrote: | The thing is this "long run" is a hypothetical for | investors and their finite lifetimes and finite windows | of return. | | Companies aren't accountable to some infinitely long | running algorithm or timeless dynasty of shareholders, | their accountable to living breathing greedy humans who | want to make a buck NOW, not when they are dead or for | their heirs. | [deleted] | vineyardmike wrote: | > How many other apps or services went under (or were never | made in the first instance) because Apple decided that their | business needed to pay them a 30% cut of everything. | | Probably very few apps fit this. This rule basically only | applies to digital goods, which are "free" to manufacture. | There is some fixed server/dev costs, but its practically | "free" to serve n+1 users. | | This applies especially true to games where you buy in-app | "coins". They're free to the dev, and giving our more / de- | valuating the currency is a not-issue. | | Of course, it probably takes a toll on licence-based apps | like netflix/spotify and mostly server-heavy apps like Hey | (by basecamp) | karatinversion wrote: | Hmm, I don't think the marginal analysis tells the whole | story here. If you imagine a business that made revenue | through sales through an App Store without a 30% tax, with | a 20% profit margin, that's a healthy business. With the | 30% cut, they lose 10% and go under. | | These missing smaller players are the deadweight loss from | the cut. You either need the scale to cover your fixed | costs from a reduced revenue stream, or a revenue stream | which avoids the 30% (like ads). | Closi wrote: | > So what Apple/Google should've done is give larger publishers | a volume discount. | | From Apple/Google's perspective this is a terrible strategy. | | The problem is that, if we assume the Pareto Principle holds, | the larger publishers probably generate 80% of revenue on the | App Store. | | So assuming 5% is operating at cost, you are talking about them | probably sacrificing 70%-75% of their current profits (i.e. | moving to 5% margin vs 25%, profit for high-grossing apps is | probably closer to 1/5th previous rather than 1/3rd). | | So they avoid the lawsuit, but they also lose all the profits | they are trying to protect anyway. | zrm wrote: | Not only that, "we charge 10% to the big monster and 30% to | the little guy" is _terrible_ PR against the amount of money | they would generate from just the little guy. It 's so bad | that by that point they might as well just charge the lower | rate to everybody. Especially when they're trying to stave | off legislation. | cletus wrote: | Paying lower unit price for higher volume customers is | literally how the entire economy works. People deal with | this every day. It's why jumbo packs in the supermarket are | cheaper. It's how Costco exists. It's the one capitalist | principle almost nobody has a huge problem with. | Closi wrote: | > Paying lower unit price for higher volume customers is | literally how the entire economy works. | | That's not how the economy works - it's a very simplified | view which IMO is incorrect in this instance. | | Companies in theory only offer volume discounts when it | makes commercial sense to do (i.e. 'second degree price | discrimination'). Price discrimination opportunities | happen when you believe that you will _sell more_ to a | customer by changing the price for a particular segment | / volume target (companies in theory always try to sell | at the maximum price that the buyer will accept, and | price discrimination is just strategy to help sell at a | higher price to certain segments if the market will | accept it). Companies will also only do deals which are | profitable (sometimes higher volume deals are profitable | while lower volume deals aren't, for instance it might be | practical to sell 1 million cans of beans to a large | supermarket chain for 20 cents, while it's only practical | to sell 10 cans of beans for 50 cents each to a smaller | shop). | | In the AppStore in reality this would mean you would need | to believe that the reduction in fees would encourage | enough big developers to the platform to offset the | change in fees (at the moment I'm assuming the | profitability threshold is met - as Apple is clearly | already making money on the bigger apps here). | | Now in order to pay for the 30% to 10% swap, you would | need to bring c5 times the number of big developers to | the platform to offset the reduced margin, which is very | unlikely to happen, particularly as Apple have the | dominant platform (i.e. most developers are already | probably on iOS that are going to be on iOS). | | Now if the industry was heavily competitive, and mobile | developers could leave and go to another platform with | lower fees and reach the same audience, then the | competitive pressure would exist to do what you are | describing and volume discounts may become a thing - but | because Apple can block any competition in this space | they don't need to offer any discount to encourage these | big developers to use their platform - the developers | _have_ to keep using them (which is what the lawsuit is | about). | | i.e. Apple's market position allows them to act as a | market-making monopsony, which means it's not in their | interest to provide a discount as they can exploit the | situation to generate super-normal profits. Economics & | business strategy 101. | ece wrote: | Steam is doing this 30%-20%, and it seems to be working | fine of them.. so far. I generally think volume discounts | come a bit too close to price fixing, if proven in court. | Granted, it's tough to prove, as we've seen in Intel vs. | AMD which settled out of court AFAICR. | Closi wrote: | Yes - although I think Steam is in a different market | position where there _are_ substitutes (e.g. developers | /publishers can choose to submit via GOG, Epic store, | Microsoft Store or sell direct so there is no monopsony), | so providing a lower revenue split to encourage big | developers to the platform is a good/valid strategy. The | strategy is different for Apple (where there are no | perfect(ish) substitutes, and they can exploit this to | have higher margins). | majormajor wrote: | I'm surprised discounts for big publishers hadn't already been | more of a thing. It's certainly happened before from time to | time: https://www.cultofmac.com/319040/apple-only-takes-15-cut- | on-... | jclardy wrote: | That's exactly it, so many users are afraid that this will mean | every random app you download will have a credit card entry | field. Nope. Those random apps will still benefit from the | simplicity of the system IAP, one tap, auth, done. The ones | asking for a credit card will drop in ratings and search | results. | | The big players are the ones that will switch, amazon, Netflix, | Spotify, Hulu, etc. And beyond that, competitors like Square | and Stripe will release SDKs that make purchasing just as easy | as the system IAP, and will actually force Apple to improve | their system. | | If Apple thinks hosting costs are of any consequence, then | charge people for hosting if they don't actively use IAP. For | 99% of apps hosting is pennies on the dollar, but for games | like Fortnite it may actually cost a decent amount, especially | for the binary size. | | The end point is that there are no technical limitations to | anything here, it is all political and Apple has the ability to | change this at any time. There just isn't any point when they | can continue to rake in 30% of every digital subscription | service on the internet that wants to exist on their platform. | Andrew_nenakhov wrote: | > The ones asking for a credit card will drop in ratings and | search results. | | Ratings and general search are already useless in appstores, | dominated by apps filled with pay2win dark patterns and | optimized/gamed to be higher in ratings. The times where you | could go to top games section and find a genuine good app are | over more than a decade ago. So you can find the app you need | only be it's exact name or via link from external source. | | So now appstore is nothing more than a very restrictive | guardian/censor. No value lost. | eropple wrote: | It's more than just one-time IAP, though. I'm generally | "whatever" on what payment processor people use, but one of | the things that _does_ concern me is subscription management. | To me there is a lot of value to having a central place where | _all_ my subscriptions are and where they can be canceled | easily, even if I don 't have the app installed anymore. | | YOLOing something with Stripe doesn't give me that without a | bunch of fundamentally opt-in stuff on the part of the | developer, and that's pretty concerning. If the platforms can | (and _do_ ) solve this, then I feel a lot better about it. | rrrrrrrrrrrryan wrote: | I haven't heard of any actual regulation or court proceedings | that would end with Apple Pay being _removed_ as a payment | option from apps. | | Apple can always require an Apple Pay option for any app in | its app store which collects payments. And honestly it'd | probably be okay if they require devs to charge users the | same amount regardless of how they pay. | | The issue is that they ban other options entirely, which | reeks of monopolistic anticompetitive behavior. | | Just let devs tell their users about Apple's 30% cut, then | let devs give users an option to pay however they want. | grishka wrote: | No. This would entrench their monopolies even further. | | It should be legally required that any device that is marketed | as a general-purpose computer, whether pocketable or not, and | is shipped in a locked state, is fully unlockable by the end | user. Without a single network packet sent to manufacturer's | servers. That's the only way we as a society could fix this | dire situation. | | In other words, if I buy a phone from Apple, I should have the | choice for this to be the only interaction I have with Apple. | They sold it to me. I gave them money, they gave me an iPhone. | It's mine now. They're no longer in possession of it. I thus | should be able to run arbitrary code on it with highest | privileges possible with no hindrance. | kryptozinc wrote: | Sure, though they may chose to wipe iOS from your device if | you unlock it. Then you are free to build your own os and | execute root level code if you wish. | ClumsyPilot wrote: | Okay, so you want to live in a world where you buy a car | and the manufacturer will wipe the engine firmware or lock | the vehicle if you change oil without their permission? | Thats already happening to farming equipment. | | You will love in a world where you own nothing, and have | less control over your life than a medieval surf - all | devices are becoming 'smart', frok door locks to toasters | diebeforei485 wrote: | They've had their opportunity over the years to reduce their | supracompetitive commission down to 20% or 15%. | | Instead they chose to dig deeper, but government can be heavy- | handed. I hope more countries do this? | endergen wrote: | I care way less about this than alternate stores have no or much | less stringent app reviews | bubblethink wrote: | Is there a better source and the text of the law ? Payment | systems are a proxy for the fee since there isn't an explicit | publishing fee. It would be quite straightforward for both Apple | and Google to charge a publishing fee, which may end up close to | the current rent. The larger issue is that there aren't | alternative app stores. Apple doesn't allow them at all, and | Google severely restricts them at the technical and business | level. | darkerside wrote: | A publishing fee would also be regressive compared to the | payment tax. Right now, people don't pay until they are | successful, at which point they may pay a LOT. But it keeps the | app marketplace much more of a free marketplace. | r3trohack3r wrote: | It's not exactly a publishing fee, but today you have to pay | Apple $99/year to distribute software into Apple's ecosystem; | otherwise they'll hide your application behind a non-obvious | ctrl+click+run flow. To my knowledge, this fee is collected | regardless of your distribution channel. | | I wouldn't call $99/year "not paying." | simondotau wrote: | The $99/year gives you additional developer tools and | access to the App Store storefront. It's up to Apple what | constitutes a sufficient license fee for the commercial use | of Apple's proprietary software libraries. | | Apple's libraries are licensed to developers under whatever | license Apple chooses. They could require a certain revenue | share regardless of which payment gateway is used. Heck, | they could license it under the GPL and require all | developers who build programs against their libraries to | release their source code. It's their code, it's up to | them. | | Similarly, Epic Games can decide when developers might have | to pay Epic for software they distribute with Unreal | Engine. Whether it's a flat fee, a revenue share, a profit | share, if there are discounts or incentives--all of that is | entirely for Epic to decide. | Hamuko wrote: | > _It 's their code, it's up to them._ | | Well, until the regulators step in (again). | simondotau wrote: | Are you suggesting that regulators can force Apple to | give away their stuff for free if they want to | participate in that market? That doesn't sound right to | me. | Hamuko wrote: | Why yes, regulators can force Apple to do what they want | in their country. And they can very easily dictate how | much Apple is allowed to charge for licensing. Fair | licensing agreements already exist in the patent space. | mathnmusic wrote: | No, Apple is free to stop operating in countries with | such regulators. No business activity => No violation of | competition-related regulations. | ohgodplsno wrote: | The thought that a government could force your favorite, | richest, international megacorporation might feel not | right to you, but that is actually how the world works. | Apple does not get to dictate how its products are | available, no matter how much they would like to. | | They are free, however to not come sell in places it | feels the rules are unfair towards it. | howinteresting wrote: | Yes, regulators can do that, and they would have pretty | clear antitrust grounds to do it as well. | | The difference between random people using the GPL and | Apple is that Apple is worth a trillion dollars. That | matters quite a bit. | oarsinsync wrote: | > _The $99 /year is predominantly for access to the App | Store. It's up to Apple what constitutes a license fee | for developers to have commercial use of Apple's | proprietary software libraries._ | | Interestingly, the $99/year fee is to access the app | store, but there's a a $299/year fee to _bypass_ the | appstore. | | https://developer.apple.com/support/enrollment/ notes: | The Apple Developer Program annual fee is 99 USD and the | Apple Developer Enterprise Program annual fee is 299 USD | simondotau wrote: | It is hypothesised that the main reason Apple persists | with the $99/year fee is as a glorified CAPTCHA, to stop | developers from mechanically creating account after | account in order to upload scummy app after scummy app. | If that's the reason, I wouldn't entirely blame them. | | The $299 enterprise program probably costs Apple | substantially more than $299 per customer/enterprise in | order to run. While I have no idea about the numbers, I | wouldn't be surprised that it is a substantial loss-maker | for Apple, justified only because it's necessary to keep | the iPhone/iPad relevant in some enterprises. | r3trohack3r wrote: | I'm not sure I agree. In order to distribute my Electron | app to Mac users via a direct download from my website, I | must pay Apple $99. Otherwise Apple will present my users | with a scare dialogue that gives the impression the | software can't be run. | rndgermandude wrote: | Apple and Google won't know what developers using outside | payment systems for purchases such as subscriptions or "in-app" | stuff are making. So they'd have a problem deciding what a | publishing fee should be. Monikers such as popularity can be | bad estimators. They might end up charging developers a lot | less or a lot more - the latter of which might ruin some | developers or hike prices for customers even more. | | I am not against a publishing fee instead of what there is now, | but it should be fair and transparent. Not that the current | system is fair and transparent... | WastingMyTime89 wrote: | > Apple and Google won't know what developers using outside | payment systems for purchases such as subscriptions or "in- | app" stuff are making. | | Then again, why should Apple and Google charge fees for | something they have no hand in? | | If they want to charge fees for distribution, they should | just do that. | rndgermandude wrote: | >Then again, why should Apple and Google charge fees for | something they have no hand in? | | Same reason as now: because they can and are in the money | making business. | | I'm not saying this is right, just that it is what it is. | Google and Apple will not just forgo millions if not | billions of "easy" dollars. My guess is that especially the | big players, who make Google and Apple the most money, will | switch to different payment processors with better terms | for them as soon as that option becomes available to them. | [deleted] | lionhead wrote: | Give it a few days then check this link: | https://elaw.klri.re.kr/eng_service/recentlyLawList.do | vbezhenar wrote: | There are plenty of alternative app stores for Android. Google | restricts them, but not severely. Android 12 will lift some | important restrictions from alternative app stores. | | I'm not trying to portrait Google as innocent, there's still | work to be done. But they are absolutely in different leagues | with Apple when it comes to user freedom. | traspler wrote: | Google allegedly forced Android OEMs to not ship devices with | a pre-installed Fortnite / Epic Games Store launcher. | | Also forcing users through multiple warning screens and | settings until you have finally installed an app might look | trivial if you know what you are doing but for everyone else | might not be as easy. There are many, many articles about how | you should simplify your websites onboarding process to | increase the amount of customers so the Android flow is | pretty much the anti-thesis to that. | snarf21 wrote: | While true, they wouldn't be so generous if they were making | it on the backend via search. They don't care that much what | store the user uses as long as they search on Google. Do they | offer any "user freedom" there? | commoner wrote: | Google does make more money from other revenue sources, but | I don't think this is the best example. Chrome (on all | platforms) allows the user to set any custom search engine | as the default. On the other hand, Safari limits users to | four choices: Google, Yahoo, Bing, and DuckDuckGo. | [deleted] | Vespasian wrote: | Not only the technical hurdles but also the legal ones need | to be significantly lower. | | Google has enormous power over phone suppliers and can force | them to preinstall their apps and store and nothing else. | grishka wrote: | > there isn't an explicit publishing fee | | I remember paying $25 or so to open a google play developer | account. For Apple, you pay $99 yearly. | simondotau wrote: | According to the FSF, the distribution of a binary computer | program which substantially relies upon GPL libraries is | considered a derivative work and would require you to abide by | the terms of the GPL license. | | Similarly, an iOS app which substantially relies upon (and must | be compiled with) Apple's libraries in order to work is subject | to whatever the terms Apple includes in their software license. | Of course Apple isn't requiring code to be open source like the | GPL. Apple could choose whatever terms they want. It would be | perfectly within Apple's right to require a revenue share for | use of those libraries--say, the Metal graphics APIs--just as | Epic Games does for the use of Unreal Engine libraries. | | Therefore it's entirely reasonable to imagine that if third | party payment gateways are permitted, Apple could still | organise things so that they are legally entitled to a | percentage cut of app sales. Again, just like Unreal Engine. | simondotau wrote: | To the people down-voting this, I realise that my post | espouses a controversial opinion for Hacker News. But could | you please explain what you disagree with? | misnome wrote: | > which substantially relies upon GPL libraries is | considered a derivative work and would be a GPL violation | if it's distributed without source code. | | I didn't vote either way, but I'm not sure that this is the | way the GPL works. As I understand it, you can distribute | only binaries as long as you supply _on request_ the source | code. FWIW the link to the GPL reads as quite tenuous and | what I would guess the downvotes were for. | | > Similarly, an iOS app which substantially relies upon | Apple's libraries in order to work is subject to whatever | the terms Apple includes in their software license | | Yes, they are free to do what they want, barring | regulation. Which is what this is. Deliberately loopholing | around the legislation is an option, but a risky manoeuvre | that might just invite more legislation. | simondotau wrote: | Thank you, I did err in how I described the GPL. I have | edited my post to correct this. | | > _FWIW the link to the GPL reads as quite tenuous_ | | The link is that any developer--whether they're Linus | Torvalds or Apple Inc--should be allowed to choose the | terms in which they release their copyrightable works | into the public. | | * One developer could choose the GPL. | | * Another developer could choose a license which requires | a flat, one-off fee. | | * Yet another developer could chose a license that is | free up front but mandates a revenue share under certain | conditions, such as Epic Games does with Unreal Engine. | | In all instances, it is copyright law which enforces | these license terms. So if you like the fact that Linus | can distribute Linux under the GPL, you must also accept | that some other company will have the right to distribute | their software under their license. | WastingMyTime89 wrote: | > To the people down-voting this, I realise that my post | espouses a controversial opinion for Hacker News. But could | you please explain what you disagree with? | | The issue is not that your argument is controversial. It's | that it falls flat because it's based on an incorrect | assumption. | | > Apple could choose whatever terms they want. It would be | perfectly within Apple's right to require a revenue share | for use of those libraries | | No they can't. | | There are a broad set of laws restricting how companies can | or can not do business. These laws severely limit the terms | Apple can set. Laws restricting anticompetitve behaviors | would be part of this set, same for the new regulations in | South Korea we are currently discussing. | simondotau wrote: | My apologies, when I said "whatever terms they want" I | was being somewhat hyperbolic, even if I do think the | spirit of the sentence is clear when read in context. | Obviously terms of any such license cannot violate law. | | Are you suggesting that Apple charging developers a | percentage-based license fee for use of their work is | unlawful anywhere, under any law current or proposed? | WastingMyTime89 wrote: | > Are you suggesting that Apple charging developers a | percentage-based license fee for use of their work is | unlawful anywhere, under any law current or proposed? | | The crux of the discussion generally focus on the parts | of the contract preventing developers from using | competing works in addition to the fees. That seems to | fall squarly into your "whatever terms they want". And | yes, I do personaly think there is a case to be made that | Apple licensing terms are anti-competitive, an opinion | which seems shared by the EU's competition chief. | | Your opinion seems to be that Apple could just stop | charging a fee for using the App Store and charge it for | the use of a different but similarly unavoidable part of | the system instead. But that's merely a technicality. It | doesn't fundamentaly change the question. | vbezhenar wrote: | Microsoft Visual Studio was not free in the past. And | even now free version is limited. I don't see it | different from hypothetical paid Apple library as long as | there are other ways to write software for the given | platform. | vbezhenar wrote: | Developers will avoid Apple libraries. Native apps already | are not so popular with Cordova, Flutter, React Native and | other options. | saagarjha wrote: | You cannot develop an app for iOS without using Apple's | libraries. | [deleted] | xondono wrote: | In the end it was bound to happen, consumers always lose to | special interests, even if app devs don't want to admit they are | one. | gigel82 wrote: | Really, this is a "loss" to consumers how? | xondono wrote: | By outlawing what _a lot_ of consumers considered a very | useful feature, and that is limiting the choices of | developers. Developers may not like it, but there's a value | in restrictions, especially in something as sensitive as | payments. | | With sensitive data flowing through a lot more companies, | it's going to be a shit show, it's just a matter of time. | gigel82 wrote: | How is this limiting anything? I see this as adding | options, and I'd like to see it adopted across the world. | xondono wrote: | It's adding options to developers, not necessarily to | users. | | The Apple and Google payment systems were in effect a | market driven standards, now we'll have a soup of systems | on a race to the bottom on a very sensitive part of the | ecosystem. ___________________________________________________________________ (page generated 2021-08-31 23:00 UTC)