[HN Gopher] Apple will charge 27% commission for alternative pay...
       ___________________________________________________________________
        
       Apple will charge 27% commission for alternative payment systems in
       Netherlands
        
       Author : walterbell
       Score  : 405 points
       Date   : 2022-02-04 09:25 UTC (13 hours ago)
        
 (HTM) web link (9to5mac.com)
 (TXT) w3m dump (9to5mac.com)
        
       | TheRealPomax wrote:
       | I like how they're literally explaining that the actual cost for
       | app payment processing caps out at 3%, and everything they charge
       | on top is just pure profit margin.
       | 
       | Nice one Apple.
        
       | makecheck wrote:
       | Apple allows "free apps" that are _entirely_ ad-supported, _never
       | giving Apple a dime_ (aside from $99 /year), yet they are
       | consuming infrastructure: hosting pages, downloads, reviewer
       | time, etc. Why isn't Apple concerned about any of _those_ costs?
       | Simple: they make overwhelmingly most of their App Store money
       | from the handful of developers that offer purchases. This also
       | leads to perverse outcomes like Apple dragging its feet on scams
       | that make them heaps of money.
       | 
       | Developers are literally subsidizing other developers, and it's
       | not necessarily the richest ones helping the poorest ones.
       | Someone trying to make money on a $0.99 app is sacrificing more
       | to Apple than Facebook does with their free app.
       | 
       | That's why I find all these percentage and payment discussions
       | weird: _income is so insanely distributed_ that a lot of this
       | literally does not apply to more than 80% of the stuff on the
       | store. There are fundamental issues that need to be resolved too.
        
         | Infinitesimus wrote:
         | I suspect as Apple ramps up their second attempt to make
         | profits from Ads, you will eventually be required to include
         | Apple's in-app ad solution if you include any third party
         | (FB/G/etc). See what happened with "Sign In with Apple".
         | 
         | It's the logical move for them as they move into being a more
         | service-oriented business and leverage all the devices they
         | have in the world.
        
         | anaisbetts wrote:
         | Ok, that's fine. If I can _choose_ to use Apple's services, in
         | exchange for their cut, then that's a trade that I can evaluate
         | as a business. Instead if I want to develop for iOS I am
         | _forced_ to use these services, and pay the cost. That's the
         | Problem.
        
           | kmlx wrote:
           | i don't get why you are forced to do this.
           | 
           | the app for my phone network just opens a webview where i pay
           | for stuff. then i close the webview and the funds just show
           | up in the app. do they also pay 30% to apple?
        
             | anaisbetts wrote:
             | Because if you do this, and you do not have an explicit
             | exception (carriers being one of them), your app will be
             | removed from the store
        
               | kmlx wrote:
               | ah, so the carriers are exempted, interesting, thanks.
               | 
               | so i guess the other route is what most companies do:
               | webapp...
        
             | yurishimo wrote:
             | If they are following apple's rules, yes, that is what they
             | want. If they catch you trying to skirt it, your app gets
             | pulled from the store until you "fix" it.
        
             | Spivak wrote:
             | No, the 30% commission is for digital goods (i.e. goods to
             | be consumed on the phone -- game "coins", ebooks, music,
             | movies, comics, app features).
             | 
             | The things that Apple takes a cut for is actually pretty
             | small in the grand scheme of commerce.
        
             | daveidol wrote:
             | This is only allowed for "non-digital" goods - otherwise if
             | you distribute in the App Store. Hell, you can't even
             | _link_ to or mention that it would be possible to pay
             | anywhere else.
        
           | thegrimmest wrote:
           | well, the thing is iOS itself isn't exactly a separate
           | "thing" from these services. Also it wholly belongs to apple.
           | You don't (and shouldn't) have a "right" to develop for it on
           | anything but Apple's terms.
        
             | alickz wrote:
             | Is macOS a separate "thing"? Does macOS wholly belong to
             | Apple? Do I have the "right" to develop a Mac app without
             | Apples say-so?
             | 
             | I don't say this to be combative, I just don't see the
             | difference between iOS and macOS in this regard.
        
               | thegrimmest wrote:
               | You can develop apps all you want, but Apple can break
               | them anytime with updates. iOS and macOS are marketed and
               | positioned by Apple differently. One is an open platform,
               | one isn't. This is and should continue to be at Apple's
               | sole discretion. If they choose to update macOS to be a
               | closed platform, they certainly have the right to do so,
               | don't they?
        
               | GeekyBear wrote:
               | Microsoft and Apple created Windows and MacOS as open
               | platforms.
               | 
               | Microsoft and Apple created XBox and iOS as closed
               | platforms.
               | 
               | The difference seems to be the intent of the platform
               | creator.
        
             | ellen364 wrote:
             | > You don't (and shouldn't) have a "right" to develop for
             | it on anything but Apple's terms.
             | 
             | Sometimes I wonder what today's computers would be like if
             | Microsoft had exerted that level of control over DOS and
             | Windows. Forget downloading some random exe you found
             | online, only approved programs can be installed. Would
             | there have been a booming software industry? Would there be
             | so much malware? Would Microsoft have allowed things like
             | the first web browsers?
             | 
             | No comment on the merits of operating systems as walled
             | gardens. I just find it fascinating (and difficult) to
             | imagine how things might have been.
        
               | musicale wrote:
               | > Sometimes I wonder what today's computers would be like
               | if Microsoft had exerted that level of control over DOS
               | and Windows
               | 
               | www.xbox.com
               | 
               | The iPhone is largely a game machine as well, as some 70%
               | of Apple's revenue from the App Store is from games.
        
               | thegrimmest wrote:
               | I just think we should allow both options to compete and
               | flourish. As you point out, each has their merits. If
               | users end up preferring walled gardens and appliance-
               | style devices, then shouldn't that be what they get?
        
               | AnthonyMouse wrote:
               | The choice needs to be independent of the rest of the
               | stack. If Apple wants to make an option where you can
               | lock your iPhone to only installing apps from Apple's
               | store and taking it out of that mode requires a factory
               | reset, that's fine, because the customer has a choice.
               | 
               | Tying that choice to the choice of hardware and operating
               | system is anti-competitive.
        
               | thegrimmest wrote:
               | Why is tying software to hardware anti-competitive? It's
               | commonplace in literally everywhere, from washing
               | machines to televisions to game consoles to CNC machines
               | to cars to tractors. An overwhelming majority of hardware
               | is sold with software included, and is designed to work
               | with that software alone. Why are we trying to force
               | iPhones into a special, narrow category they are
               | _actively avoiding_? Why do we need to make the
               | distinction _at all_?
        
             | anaisbetts wrote:
             | > You don't (and shouldn't) have a "right" to develop for
             | it on anything but Apple's terms.
             | 
             | That's one perspective. However I would argue that Apple is
             | big enough, and the number of alternative platforms is
             | small enough, that it is in the Public Interest that Apple
             | be required by the government (aka, Us, collectively), to
             | play by a different set of rules, rules that are decided by
             | you know, Democracy, rather than by fiat.
        
               | thegrimmest wrote:
               | Who is being hurt here? Users are clearly flocking to
               | this platform because it _does what they want_. Who cares
               | that app developers are unhappy? There are lots and lots
               | of smartphone manufacturers. It 's a thriving market.
               | Most non-technical folks don't perceive the device and
               | the OS as separate things.
               | 
               | If any company wants to disrupt the market, much like
               | Apple itself did with the iPhone, there is literally
               | nothing stopping them.
               | 
               | Edit:
               | 
               | > _rules that are decided by you know, Democracy_
               | 
               | At what point does democracy overreach? Is there one?
               | Isn't it "democracy in defense of liberty"?
        
               | yulaow wrote:
               | If we are sure people like so much apple services and
               | integration, should be no problem at all to have
               | alternatives not even directly managed by apple (so that
               | it won't cost anything to apple to support it, except for
               | opening some "store api"), still most users would keep
               | using only the integrated apple services...
               | 
               | or not?
               | 
               | Maybe users would like them even more!
        
               | thegrimmest wrote:
               | The point here is that _Apple itself_ should be able to
               | choose when and how and to whom it open the _Apple
               | Store_. It should not be compelled to do so by anyone but
               | its own directors and shareholders. If someone wants to
               | sell phones that don 't have this limitation, they are
               | free to seek investment and build them.
        
               | pixl97 wrote:
               | There are two different things here.
               | 
               | First is the Apple Store, and you are correct you have no
               | right to have your application on it.
               | 
               | Second is the hardware device I paid money for and exists
               | in my pocket. There is no reasonable right that Apple
               | says "Only we can put a program on it, and you will have
               | no ability to run your own programs on it"
               | 
               | We live in a world where hardware makers of all kinds
               | think we own them a permanent rent. It is a poor and
               | expensive path to let them continue.
        
               | commoner wrote:
               | It's not reasonable to exepct other app stores to build
               | their own mobile operating systems, which is why there is
               | momentum among lawmakers in the U.S. to pass a bill that
               | protects the right of users to use alternative app stores
               | and sideload apps.[1] It is unjust for Apple to use its
               | market power in the U.S. smartphone industry (57% market
               | share in Q4 2021)[2] to force users and developers to
               | endure the effects of a 15-30% fee (offset by a
               | 17.6-42.9% price increase) on the majority of revenue
               | generated by app developers, a fee that would not survive
               | a market where multiple app stores were able to compete
               | for iOS users.
               | 
               | Apple's market share is different in the Netherlands, but
               | strong regulations in one major market are all it takes
               | to punch a hole in Apple's monopoly/duopoly position.
               | 
               | [1] https://news.ycombinator.com/item?id=30195167
               | 
               | [2] https://www.counterpointresearch.com/q4-2021-us-
               | smartphone-m...
        
               | clusterfish wrote:
               | Users have no choice, the market is a duopoly, and
               | Android app store has all the same problems (because it's
               | a duopoly). You can't feasibly escape platform tax on
               | mobile.
        
               | Retric wrote:
               | You don't need to use Google's android App Store on
               | Android.
        
               | AnthonyMouse wrote:
               | They make it sufficiently arduous to do otherwise that
               | the bar is higher than what ordinary people can reach.
               | The proof that this is not the case will be when a single
               | store has less than half of the Android app market.
        
               | ajsnigrutin wrote:
               | Yep, apple and google are basically a duopoly, and if you
               | want a "normal smartphone" (basically a device, where you
               | can get apps for your online banking, mainstream games
               | and other content, etc.), there are basically no real
               | alternatives.
        
             | realusername wrote:
             | Hence the market abuse regulations, we can't really have
             | only two companies controlling all the market. iOS became
             | too big for Apple.
        
               | thegrimmest wrote:
               | why not exactly? As long as consumers are getting good
               | devices and good competition (which they are), then
               | what's the problem? It's not like the door is closed to
               | innovation here, if any company can disrupt the
               | smartphone market then the takings are all theirs. This
               | is literally what Apple did with the original iPhone.
               | Have you heard of Blackberry recently? I don't see that
               | the incumbents are preventing this in any meaningful way,
               | in the same way that RIM wasn't. Furthermore there are
               | way more than two players in the smartphone game.
        
               | realusername wrote:
               | There's no competition, which competition exactly? The
               | only tariff change Apple ever done in 10 years was due
               | ... to a threat of an anti-trust lawsuit, you can't make
               | this up. Even Apple basically admits indirectly the lack
               | of competition. You only have two companies, with very
               | similar rules and behaviour, there's no market anymore.
               | 
               | Don't get my comment wrong, I'd say the exact same thing
               | about Google. It's a duopoly without any competition
               | whatsoever.
               | 
               | > if any company can disrupt the smartphone market then
               | the takings are all theirs
               | 
               | I don't think that's possible, even Microsoft failed at
               | it with their massive funding.
        
               | thegrimmest wrote:
               | https://www.gsmarena.com/makers.php3 loads of mobile
               | phone companies, lots of healthy competition. Non-
               | technical consumers don't perceive the device and the OS
               | as separate things.
        
               | realusername wrote:
               | I'm talking about the mobile app market here, not the
               | quality of the camera.
        
               | thegrimmest wrote:
               | Right, but Apple is a mobile phone company, not a mobile
               | app company. iOS app companies exist entirely at the
               | pleasure of Apple, just like companies who depend on the
               | Twitter API.
        
               | realusername wrote:
               | I disagree with that, Apple is a mobile app company and
               | there's only two in the world.
               | 
               | Twitter as big as it is, is just a website across
               | millions of others. In the mobile app market there is
               | exactly two companies, Apple and Google, that's it.
               | 
               | Does Oppo or Samsung has any power when publishing an
               | app? No? Then they are not part of this market.
        
               | thegrimmest wrote:
               | There aren't many mobile apps you can buy from Apple.
               | Apple is primarily a hardware manufacturer. Their entire
               | product lineup consists of devices[1].
               | 
               | 1. https://www.apple.com/us/store
        
               | colinjoy wrote:
               | Entirely?
               | 
               | https://www.apple.com/services/
               | https://www.apple.com/logic-pro/
               | https://www.apple.com/final-cut-pro/
               | 
               | Of course, these are not the bread and butter products.
               | 
               | I find it a bit pointless to separate their hardware and
               | software. I know few people who run Windows or Linux on
               | their Apple hardware. For me, Apple is primarily a
               | _products_ company that excels in fusing hardware and
               | software together. They are increasingly expanding into
               | services, too.
        
               | smoldesu wrote:
               | > Right, but Apple is a mobile phone company, not a
               | mobile app company.
               | 
               | Apple has consistently made more money from collecting
               | their 30% tax than they have from manufacturing iPhones:
               | 
               | https://www.statista.com/statistics/263402/apples-iphone-
               | rev...
               | 
               | https://www.statista.com/statistics/296226/annual-apple-
               | app-...
        
               | thegrimmest wrote:
               | Isn't that the whole point? They can only make that money
               | because they build the phones to begin with. They also
               | invested in building the entire platform, literally from
               | scratch. Isn't this just a return on their investment?
               | Aren't they perfectly entitled to it? Why can't phones be
               | loss leaders into mobile app ecosystems, just like razors
               | are loss leaders into razor blades?
        
               | owisd wrote:
               | > Aren't they perfectly entitled to it?
               | 
               | Up to a point, no. Common Carrier laws have been around
               | for a long time and had demonstrable benefits. Net
               | neutrality means phone companies can't use their
               | infrastructure however they like. AT&T wanted to just sit
               | on their patent for the transistor but was pushed by the
               | government into to licensing it to Motorola, TI, etc.
               | There's no reason why similar regulations couldn't be
               | applied to mobile app platforms.
        
               | smoldesu wrote:
               | App developers shouldn't be beholden to using Apple's
               | payment processing if they don't want to use it. Along
               | that same line of logic, forcing developers to go through
               | Apple for first-party distribution gives them a defacto
               | monopoly over the iPhone. Apple could charge 85% overhead
               | and there would be nothing developers could do about it.
               | 
               | The only fair resolution here is to force Apple to
               | compete with other storefronts to prove that the value
               | they provide is competitive. Apple could resolve this
               | issue in a number of ways, but they've only chose to make
               | the problem worse; that's why 34 states have come forward
               | voicing their concern[0], and why EU regulators have been
               | stepping in to block Apple's service expansions. They're
               | the largest company in the world, and they deserve the
               | most regulatory scrutiny for it; anything else is a
               | failure of democracy and capitalism.
               | 
               | [0] https://finance.yahoo.com/news/1-dozens-u-states-
               | apple-03470...
        
               | thegrimmest wrote:
               | > _monopoly over the iPhone_ > _Apple could charge 85%
               | overhead and there would be nothing developers could do
               | about it._
               | 
               | That's exactly right! Then fewer and poorer apps would be
               | built on iOS, and users would notice, and they would
               | migrate to other platforms. This has happened plenty of
               | times before. Yes, Apple has a monopoly over the iPhone -
               | it's an Apple product. Just like Sony have a monopoly
               | over the PS5, and Samsung has a monopoly over the
               | WF45R6300AV Front Load Washing Machine.
               | 
               | The only fair resolution would be to allow Apple to do
               | whatever it wants with Apple devices. If everyone at
               | Apple collectively lost their minds tomorrow, they would
               | have every right to pull all apps from the App Store
               | completely. They could shut down the platform. It's
               | literally _theirs_ in every sense of the word. They built
               | it. They own it. They operate it. Just because people are
               | concerned doesn 't make socializing iPhones or the App
               | Store in any way reasonable.
        
               | charcircuit wrote:
               | Apple could decided third party apps aren't allowed and
               | then developers make 0%. It's their platform to decided
               | what to do with. If they think 15/30% works well, then so
               | be it.
        
               | pixl97 wrote:
               | Apple is 100% a mobile app company. They guard all the
               | doors, they hold all the keys to the hardware device.
               | Thereby they dictate what you can run on _your_ hardware
               | that _you_ paid for after the sale.
        
         | spywaregorilla wrote:
         | > Apple allows "free apps" that are entirely ad-supported,
         | never giving Apple a dime (aside from $99/year)
         | 
         | This is a hilarious quote, especially with the way you
         | highlighted "never giving apple a dime"
        
         | tobias3 wrote:
         | That's a good point. They are taxing paid apps and not taxing
         | ad-supported apps. Which incentivizes the ad-model and
         | therefore reduces the number of paid apps.
         | 
         | This has been the case since the beginning with mobile app
         | stores so who knows how the distribution of paid vs ad-
         | supported apps would be if this wasn't the case.
        
         | AndriyKunitsyn wrote:
         | Uhm, the $99/year thing is actually substantial. It is not
         | competitive at all.
         | 
         | I'm pretty sure if Apple let people just download IPA files
         | (like they do with APKs on Android), lots of developers would
         | choose that over the walled garden.
        
           | shagie wrote:
           | What about the price to become a Playstation, Nintendo, or
           | Xbox developer?
           | 
           | ---- Sony ----
           | 
           | https://www.retroreversing.com/official-playStation-devkit
           | 
           | > Perhaps the most ingenious move on Sony's part was its
           | decision to use the PC as a development platform, enabling it
           | to call on the skills of huge number of developers. Licensees
           | now receive a pair of full-length ISA cards that plug into a
           | normal PC. These two cards contain the entire PlayStation
           | chipset, as well as extra RAM and some logic to enable them
           | to talk to the PC. 'lt's great having the system inside the
           | PC,' reckons Peter Molyneux. 'With most bulky console
           | development systems it sometimes feels like you're surrounded
           | by NASA control.'
           | 
           | > Such technology doesn't come cheap, though. PlayStation
           | developers need to cough up PS 12,000 for the full system
           | (which Sony is adamant it doesn't make money on), although
           | all subsequent software tools and hardware upgrades are free.
           | 
           | ---- Nintendo ----
           | 
           | https://developer.nintendo.com/faq
           | 
           | > Registering for the portal and downloading the tools is
           | completely free. Also, if you plan to release a digital only
           | title, you can use the IARC system to retrieve the age rating
           | for no fee, which will allow you to publish in all the
           | participating countries. All that is left is the cost of
           | acquiring development hardware: you will find more
           | information on this inside the portal.
           | 
           | https://developer.nintendo.com/home/development-for-
           | nintendo...
           | 
           | > On 3/25/2021, the only Nintendo platform for which new
           | development is possible will be Nintendo Switch.
           | 
           | > Development for Nintendo 3DS and Wii U will only be
           | possible for those who have already purchased development
           | hardware. Those who do not have development hardware will not
           | be able to develop.
           | 
           | https://www.digitaltrends.com/gaming/nintendo-switch-dev-
           | kit...
           | 
           | > At the Game Creators Conference 2017 in Osaka, Japan,
           | Nintendo announced that Switch development kits would only
           | cost 50,000 yen, or roughly $450.
           | 
           | > To put things in perspective, a PlayStation 3 development
           | kit ran for $20,000 at launch.
           | 
           | ---- Microsoft ----
           | 
           | https://developer.microsoft.com/en-us/microsoft-
           | store/regist...
           | 
           | > Individual accounts cost approximately $19 USD, and company
           | accounts cost approximately $99 USD (the exact amounts may
           | vary depending on your country or region). This is a one-time
           | registration fee and no renewal is required.
           | 
           | (having some difficulty finding the specifics of the Xbox
           | series X and series S dev kits)
           | 
           | --- --- ---
           | 
           | The point of this is that as a game device, the iPhone is in
           | line with other developer programs and in some cases (Sony,
           | looking at you) quite a bit less expensive.
        
             | pixl97 wrote:
             | Too bad the iPhone is actually a phone, and not 'just' a
             | game device.
        
           | fr2null wrote:
           | $99/year is literally nothing for most companies.
           | Furthermore, Android has competing app stores, yet by far the
           | biggest one is still the Play Store. Lots of developers (and
           | users) did not and would not chose other distribution
           | methods.
        
             | [deleted]
        
             | joseloyaio wrote:
             | That's a lot. That's basically a $9/month SaaS.
             | 
             | They are not subsidized at all.
             | 
             | I've seen cheaper subscription services that also come with
             | support, hosting and services.
        
               | charcircuit wrote:
               | It's less than a day's worth of wages for a software
               | engineer and provides you a potential audience of
               | millions of users.
        
           | willhinsa wrote:
           | $99/year, _AND_ you have to do your development on a Mac!
        
         | Kwpolska wrote:
         | > never giving Apple a dime (aside from $99/year), yet they are
         | consuming infrastructure: hosting pages, downloads, reviewer
         | time, etc
         | 
         | Pretty sure $99/year is more than a dime. It should be more
         | than enough to pay for hosting the app. As for reviews, app
         | developers don't _need_ those, so if Apple wants to review
         | apps, they should also be the ones paying for it.
        
           | makecheck wrote:
           | It's the only income they receive in that case, and it is
           | fixed, whereas their costs are variable (e.g. whether some
           | app is downloaded thousands of times or dozens; whether apps
           | decide to post video previews or not; they receive the same
           | money but incur different costs on infrastructure).
           | 
           | App Review alone takes hours per update and is done many
           | times a year for apps. Even if a single Apple employee is
           | involved, and even if they are paid something pathetic like
           | $5 an hour, that $99 will be eaten up quickly from reviews
           | alone.
           | 
           | My point is that it doesn't add up; Apple likes to claim all
           | these "costs" for "running" the App Store but there are
           | gaping holes in their accounting unless you consider that not
           | all developers are really equal here.
        
         | Orphis wrote:
         | Do you really think the hardware costs THAT much too?
         | 
         | Users are already paying a premium for the privilege of buying
         | an iOS device. And Apple knows that usually it will add some
         | pressure on friends and family to have devices in the same
         | family. Everything related to the app store is already paid
         | for, the bandwidth is cheap, maintaining the service is cheap
         | enough and covered by the device premium AND the developer
         | subscription.
         | 
         | Whether the apps are free or paid for (with a big cut for
         | Apple), the company is already making money. The tax on top of
         | everything is just a way to make a lot of money and favor Apple
         | services when compared to competitors in the same segment.
        
       | consp wrote:
       | It's a bit late in the discussion but basically they are saying
       | at most 3% is cost , and emphasis on "at most". The rest is just
       | profit or legal requirements (and thus not counted to loss).
        
       | Isinlor wrote:
       | EU is specifically drafting legislation for gatekeepers in
       | Digital Markets Law.
       | 
       | TL;DR Apple and Google will have to allow to install third-party
       | app stores trough their stores.
       | 
       | This type of private taxes will become impossible to enforce.
       | 
       | https://eur-lex.europa.eu/legal-content/en/TXT/?qid=16081168...
       | 
       | Gatekeepers like Apple will have specific obligation according to
       | Article 5:
       | 
       | (b) allow business users to offer the same products or services
       | to end users through third party online intermediation services
       | at prices or conditions that are different from those offered
       | through the online intermediation services of the gatekeeper;
       | 
       | (c) allow business users to promote offers to end users acquired
       | via the core platform service, and to conclude contracts with
       | these end users regardless of whether for that purpose they use
       | the core platform services of the gatekeeper or not, and allow
       | end users to access and use, through the core platform services
       | of the gatekeeper, content, subscriptions, features or other
       | items by using the software application of a business user, where
       | these items have been acquired by the end users from the relevant
       | business user without using the core platform services of the
       | gatekeeper;
       | 
       | And Article 6:
       | 
       | (c) allow the installation and effective use of third party
       | software applications or software application stores using, or
       | interoperating with, operating systems of that gatekeeper and
       | allow these software applications or software application stores
       | to be accessed by means other than the core platform services of
       | that gatekeeper. The gatekeeper shall not be prevented from
       | taking proportionate measures to ensure that third party software
       | applications or software application stores do not endanger the
       | integrity of the hardware or operating system provided by the
       | gatekeeper;
       | 
       | (k) apply fair and non-discriminatory general conditions of
       | access for business users to its software application store
       | designated pursuant to Article 3 of this Regulation.
       | 
       | Following articles, like:
       | 
       | - article 7: Compliance with obligations for gatekeepers
       | 
       | - article 10: Updating obligations for gatekeepers and
       | 
       | - article 11: Anti-circumvention
       | 
       | Give the EU Commission quite a lot of maneuvering power to ensure
       | effective implementation.
        
         | MilaM wrote:
         | A more general explanation of the new law can be found here:
         | 
         | https://ec.europa.eu/info/strategy/priorities-2019-2024/euro...
        
         | tomjen3 wrote:
         | This should be changed so the end user gets to decide what
         | payment service to use. I don't want to download and app and
         | have to insert my credit card ever and I want to cancel
         | subscriptions in one place the way I can now.
         | 
         | It should not be up to the developer to choose how I pay them,
         | only the amount.
        
           | schmorptron wrote:
           | Good point! If people are happy to pay 13EUR instead of 10EUR
           | for the convenience of using the platform owner's payment
           | system, that should always be an option.
        
             | disiplus wrote:
             | the app maker should have the complete freedom what payment
             | options he offers. if i want you to pay me in stones that
             | is my freedom, the same you are free to not use my app and
             | find another app that offers methods that you like.
        
               | john_minsk wrote:
               | Great point. Also true: I already have some level of
               | trust with Apple(I bought their device), not you. So
               | Apple should return more relevant results for me on
               | AppStore or even allow me to filter out those apps, that
               | doesn't support preferred option of payment. Will you
               | agree with such setting?
        
               | ThatPlayer wrote:
               | I don't mind it being a filter, but I think them sorting
               | them like that by default could be an issue. Would you
               | equivalate it to developers paying for higher search
               | ranking? Apple favoring their own services over others
               | definitely could be an anti-trust issue.
        
           | stale2002 wrote:
           | Sure. A reasonable compromise would be that the app developer
           | puts Apple's payment system in the app, for you to use, but
           | all transparently tells you that you have to pay the 30%
           | Apple fee yourself.
           | 
           | So, you'd be shown 2 options. Option 1 would be their payment
           | processor, and option 2 would be Apple's. And you could
           | choose to pay an extra 30% to use Apple's.
           | 
           | Problem solved right? Everyone gets what they want, and pays
           | the appropriate fee.
        
           | lifty wrote:
           | Card details can be stored in the phone and the OS can offer
           | a payments API through which any payment provider can
           | integrate. Similarly to how the File Provider API works.
        
         | srcreigh wrote:
         | What makes a business a gatekeeper? Would this require for eg
         | discord to allow 3rd party clients?
        
         | schmorptron wrote:
         | Uuuh, things are gonna get interesting! Putting on my tinfoil
         | hat here, if this goes through I forsee that we'll see a lot of
         | fearmongering about malware in the near future, and even some
         | well publicized cases of malware infecting people who go
         | outside of the established app stores.
        
           | MikeDelta wrote:
           | Indeed, that is the argument Apple is making, and at the same
           | time the app store itself seems riddled with scammers.
           | 
           | [0] https://news.ycombinator.com/item?id=27413934
           | 
           | [1] https://news.ycombinator.com/item?id=14526156
           | 
           | [2] https://news.ycombinator.com/item?id=26015866
           | 
           | [3] https://news.ycombinator.com/item?id=25986515
        
           | komuher wrote:
           | App store is full of scam right now so wouldnt be a big
           | change xD
        
       | kybernetyk wrote:
       | That seems very deserved. Not.
        
       | pembrook wrote:
       | It's interesting to me that the OS market in two separate
       | generations of tech has naturally shaken out to become a duopoly.
       | 
       | Desktop computing for decades has been just Windows or MacOS (For
       | 98.5% of people, yes I know Linux exists, but quit being cute).
       | 
       | Mobile computing took only a few years to shake down to iOS and
       | Android.
       | 
       | Are OS markets inevitably always going to mature into duopoly? To
       | me this is the core issue here.
       | 
       | Since computing is now the basis of the modern economy, the 3
       | companies that are in the OS business across desktop and mobile
       | (Microsoft, Apple, Google) are basically the wealthiest companies
       | on earth due to their ability to extract rents from all of
       | computing.
       | 
       | I get that these companies built the market (although you could
       | argue the tech was inevitable, so many teams were working on it
       | in the early days) but once you become one of the winners and
       | most valuable company on earth, extracting 30% rents starts to
       | feel like a drag on future innovation.
       | 
       | It's also interesting to me that Jobs originally courted John
       | Scully from Pepsi to run Apple way back in the 80s---what a
       | bizarre choice. Did he know the market would inevitably always be
       | a duopoly like the Cola market, already back then?
        
       | toolslive wrote:
       | they're probably just anchoring the rate for future negotiations.
        
       | natch wrote:
       | I am a huge fan of Apple but... also a fan of reality so I'll
       | share this story here.
       | 
       | This fun anecdote is about what I think is Apple's treatment of
       | other companies' pricing rules -- The Apple Company Store at 1
       | Infinite Loop in Cupertino used to sell a variety of clothing,
       | accessories, and various items including, seasonally, Lego
       | Mindstorms kits.
       | 
       | My impression from having observed Lego over the years is that
       | they have very strict retail pricing rules. I have no other
       | evidence for this than what I've seen in the market.
       | 
       | Each year at the Apple Company Store, when Christmas season
       | rolled around, the store would get Lego Mindstorms in stock. One
       | year, we decided to buy a set.
       | 
       | The store is frequented by Apple employees, who get a steep
       | discount on Apple merchandise. But Lego... they have (I think)
       | strict rules about discounts, so what was Apple to do here?
       | 
       | Now I am making some guesses here, to be fair. But I found it
       | very interesting that there at the store they had a large pile of
       | Mindstorms sets that all had mysteriously carefully damaged
       | boxes, which looked like the corner of the box had been gently
       | stepped on, all in the same way, and that were all marked down
       | significantly, something like 30 or 40% for "damage." Inside, the
       | sets were fine.
       | 
       | It could have been just a coincidence, but my spidey senses were
       | telling me it was something else... I suspect it was Apple, not
       | able to mark the items down for employees due to strict Lego
       | corporate rules about when sets can be marked down and when they
       | cannot (sound familiar? Apple is pretty strict about pricing as
       | well, in my understanding). And they found a loophole in that
       | damaged items could be marked down.
       | 
       | So, somehow, the items ended up "damaged", as a nice holiday
       | special gift item for employees (or for anyone who came into the
       | shop, lucky for me).
       | 
       | These days, the Apple Company Store after a revamp does not carry
       | as much third party merchandise, so I don't know if this is still
       | a thing.
        
         | eli wrote:
         | Or they made a deal with Lego to get them cheap in exchange for
         | making them harder to resell or return to a different store for
         | a profit
        
           | natch wrote:
           | Could be.
        
         | tinus_hn wrote:
         | This tactic is in no way specific to Apple or Lego, in many
         | businesses with high markup they want to (in specific cases)
         | sell at a lower price without breaking their contracts,
         | insulting their costumers and inviting scalpers. So they sell
         | items that can't be resold, aren't wanted by the costumers that
         | buy at the original price and are not covered by their
         | contracts.
        
       | jeffybefffy519 wrote:
       | I cant understand what justification Apple thinks they have for a
       | payment processing cost this high? A couple of percent sure, but
       | justify the rest?
        
         | Spivak wrote:
         | This is the biggest confusion. You're not paying 30% for Apple
         | to process your payments -- you're paying 3% for that,
         | apparently. Not really a surprise since that's what every other
         | CC processor charges but now we know. The rest is a sales
         | commission, always has been. If you read any of the documents
         | for the Apple/Epic lawsuit you can see exactly that. You want
         | to reach iOS users and sell to them on Apple's land, that's the
         | price.
         | 
         | You wanna sell stuff to players in your Xbox game, 30%. You
         | wanna sell stuff to players in your Playstation game, 30%. The
         | service they're selling is stalls in their market that gets a
         | lot of foot traffic.
        
       | aspenmayer wrote:
       | A reminder: the original app store on iOS was saurik's Cydia. App
       | Store wasn't even on iPhone 2G at launch.
       | 
       | Cydia is free and open source. Hopefully saurik can clarify the
       | commission for paid apps on Cydia, but something tells me it
       | isn't 27%.
        
       | can16358p wrote:
       | Don't want to play devil's advocate here but if they didn't, many
       | big players would be using their platforms to build their apps,
       | reaching Apple's customers on Apple devices, giving the app for
       | free and processing everything off-Apple land, basically using
       | the whole platform for making millions without giving Apple
       | literally anything ($99 dev fee is nothing compared to all the
       | money being made).
       | 
       | If I were a company who literally created a whole industry and
       | many other companies were making millions off the platform I
       | created, I'd of course take my cut, and a well-deserved big one.
       | 
       | It's a for-profit company who enabled those apps/purchases* to be
       | made in the first place, not a charity or a non-profit.
       | 
       | (*: not talking about non-app related payments like real world
       | items, obviously)
        
         | tsimionescu wrote:
         | So poor Apple would only be left with the 1000$ for each iPhone
         | sold?
         | 
         | I wonder if such arguments existed decrying Microsoft's immense
         | charity in allowing others to make money off of its platform
         | back when Windows was the dominant way of computing and
         | connecting to the Internet with 0 fees for installing software
         | on Windows...
        
         | amelius wrote:
         | > If I were a company who literally created a whole industry
         | 
         | Because computing didn't exist before Apple?
        
           | wccrawford wrote:
           | Not even mobile computing. There was a Windows Mobile long
           | before the iPhone existed. They may have really brought it
           | mainstream, but if they hadn't, someone else would have.
        
         | qalmakka wrote:
         | Following your logic than all PC makers should be paying a fee
         | to IBM for creating the PC? It doesn't make sense, it was never
         | done this way in the past and it only goes on because sadly
         | most politicians are borderline computer illiterate and are
         | easily bamboozled by the complexity of the matter. Just look at
         | when Sundar Pichai testified at the US Senate, most lawmakers
         | have zero ideas on how the Internet works, and they don't
         | really have the means to understand the similarities that exist
         | between what Apple is doing and the "brick and mortar" world
         | they are accustomed to.
         | 
         | If you create an industry, a platform, you already have
         | instruments to monetize on it. the Apple software platform is
         | already tied to its own devices, from whose sales Apple has
         | earned a vast amount of wealth over the years and profited
         | thanks to their massive margins. What makes Apple different
         | from Google in this regard is that the Play store has won due
         | to _consumer choice_ , while Apple has basically prohibited
         | side loading and alternate stores in any possible way and
         | shape.
         | 
         | The Amazon Appstore has failed to gain marketshare because
         | people simply didn't like it, and Google play was just
         | superior, end of it, and if you want to use Google services in
         | order to give your customers what they want you have to pay
         | Google's fee, fair and square. On an Apple device there are no
         | ways to sell people anything without paying Apple because Apple
         | does not allow it.
         | 
         | If Apple starts providing a shitty service with its Appstore,
         | there is no way to circumvent it, you must choose either to
         | quit the iOS market entirely or play along whatever rules they
         | decide to adopt. This is basically extorting protection money,
         | with a few extra steps on top of it.
        
           | Spivak wrote:
           | > Following your logic than all PC makers should be paying a
           | fee to IBM for creating the PC.
           | 
           | This is called patents, so yes, actually. But this is more
           | akin to Microsoft charging 30% for sales in Windows and Xbox,
           | which would be totally allowed.
           | 
           | > politicians are borderline computer illiterate
           | 
           | And developers are ignorant of business and law which is what
           | this case is really about. Absolutely nothing about Apple's
           | sales commission is about tech. Wanting something to be
           | different just because it's digital doesn't make it so. Uber
           | is still a taxi company.
           | 
           | > you already have instruments to monetize on it
           | 
           | And that instrument is charging for access to the platform --
           | some might say 30%.
           | 
           | > there are no ways to sell people anything without paying
           | Apple
           | 
           | Right. This is the point. This is literally the thing Apple
           | charges for. The one thing. The thing that people, very
           | rationally, want for free. I also want to get all the
           | benefits of a company's work without paying too.
           | 
           | > you must choose either to quit the iOS market entirely
           | 
           | This is the core issue, Apple, and the law in most countries,
           | say you have absolutely no inherent right to access the
           | market they created. You don't get to demand the ability to
           | set up a stall in someone's mall because they charge 30% to
           | the stores.
        
         | smnrchrds wrote:
         | It reminds me of ISPs' arguments that Netflix and like should
         | pay more for fast connection to their customers because
         | "otherwise who is gonna pay for the bandwidth?" We the
         | customers do. We pay a high monthly fee for our connection and
         | ISPs want to slow down our traffic to double-dip by charging
         | content providers the access to us. If I pay 1500$ for a phone,
         | I expect Apple to treat me as their _customer_ , not as a
         | resource to be sold to App developers.
        
           | sebastien_b wrote:
           | Apple's _real_ customers are their shareholders, not its
           | users.
        
       | mrtksn wrote:
       | If you paid attention to Epic v.s. Apple, that was also the
       | conclusion of the US court.[0]
       | 
       | When you use Apple tools to to make and publish software, Apple
       | is entitled to a cut. The limitations Apple imposes on the
       | payment processors are simply to make it easy to collect their
       | cut and streamline the user experience.
       | 
       | I think the only scenario where Apple is not entitled to a cut is
       | when you use non-Apple toolchain to develop your apps and spread
       | it through non-Apple distribution channels, i.e. Cydia. Currently
       | that requires a jailbroken device but maybe if Apple is forced to
       | allow side loading, the cut for distribution can be collected by
       | other companies instead of Apple.
       | 
       | [0] https://9to5mac.com/2021/09/14/apple-can-still-charge-its-
       | ap...
       | 
       | "Apple has the legal right to do business with anyone they want,"
       | said Paul Gallant, managing director at Cowen & Co. "So Apple
       | could change the terms of the App Store and say to developers,
       | regardless of where you collect your revenue, you owe us 30%, and
       | if developers refuse to pay it, Apple would be free to de-
       | platform them."
        
         | GeekyBear wrote:
         | There's an excellent overview of the US Federal court's 180
         | page decision on Youtube, but it's rather long. The diction is
         | good, so it's still understandable when set to run at a faster
         | speed.
         | 
         | The first 15 minutes is a summary and the balance of the video
         | is a more detailed look.
         | 
         | https://www.youtube.com/watch?v=43CMV8KIs3E
         | 
         | TL;DW, the judge makes it clear that Apple can still charge a
         | cut even if developers use someone else's payment system.
         | 
         | She also hints strongly that Epic screwed up by not challenging
         | the size of Apple's cut instead of challenging their right to
         | take a cut.
        
         | ls15 wrote:
         | If only they would allow sideloading. How cool would a F-Droid
         | equivalent for iOS be? I can only hope that Apple or regulators
         | will open up that walled garden a bit.
        
         | schmorptron wrote:
         | Doesn't that still leave the problem with "using apple tools"?
         | Currently, the only way I know of to compile apps that run on
         | iPhones are xcode, on a macintosh.
         | 
         | Even when using frameworks like flutter I'm pretty sure you
         | still need to use an apple compiler to make the final build,
         | right?
        
           | viktorcode wrote:
           | Technically you don't need it. There's no mechanism
           | preventing another toolchain from producing an iOS build.
           | It's just nobody is interested in creating an alternative
           | toolchain.
        
           | mrtksn wrote:
           | I don't think that you have to use Apple toolchain, it's just
           | way way easier to do so. I think there was some linux
           | toolchain that you can use to build binaries for iOS.
           | 
           | On a non-jailbroken devices you will need to sign your binary
           | with Apple's help but on a jailbroken device you can install
           | whatever you want. It's also perfectly legal.
           | 
           | Besides, some hacking companies manage to install their
           | malware on non-jailbroken devices.
        
             | kbuck wrote:
             | There is no 3rd-party toolchain that you can use for a
             | complete iOS (or even MacOS) build. Even if you cross-
             | compile the majority of your code, you will need to
             | transfer the binaries to a Mac for code signing. Everywhere
             | I've worked that has produced Mac builds has had at least a
             | small cluster of Mac machines to perform code signing. (But
             | usually at this point, you just give up and perform the
             | entire build on the Mac cluster.)
        
       | foxfluff wrote:
       | Huh so they were fined 5M eur and pulled this trick. I think they
       | deserve a follow-up fine that's at least two orders of magnitude
       | greater.
        
       | rvz wrote:
       | I don't see why Apple would back down from making their
       | intellectual property to be used for free. But it is quite
       | unsurprising and expected that they will find a way to collect
       | the fees even if IAP was optional. [0] [1].
       | 
       | [0] https://news.ycombinator.com/item?id=29490666
       | 
       | [1] https://news.ycombinator.com/item?id=29914273
        
         | jacquesm wrote:
         | What intellectual property?
        
           | rvz wrote:
           | So using Apple's SDKs, App Store, devices and services etc
           | isn't their intellectual property and it is all public domain
           | and free to use?
           | 
           | In case if you haven't read the comment:
           | 
           | From [0] of page 112 (b)
           | 
           | > The Court agrees with the general proposition that Apple is
           | entitled to be paid for its intellectual property. The
           | inquiry though does not end with the bald conclusion. Apple
           | provides evidence that it invests enormous sums into
           | developing new tools and features for iOS.
           | 
           | I don't think anyone would agree to develop all of that for
           | free at a loss, especially when it is used by billions of
           | users and devices. They will still collect the fees either
           | way and as predicted.
           | 
           | [0] https://www.courtlistener.com/docket/17442392/812/epic-
           | games...
        
             | pritambaral wrote:
             | > So using Apple's SDKs, App Store, devices and services
             | etc isn't their intellectual property and it is all public
             | domain and free to use?
             | 
             | Don't you have to pay $99/yr for that already?
        
               | etchalon wrote:
               | No.
        
             | jacquesm wrote:
             | Different court case.
        
       | fartcannon wrote:
       | Apple is acting a bit petulant.
        
       | sebastien_b wrote:
       | Instead of forcing Apple to allow alternative payment methods,
       | Apple should have been forced to implement PWAs to full specs in
       | Safari/WebKit. That would help take care of the AppStore
       | monopoly.
        
         | anonymouse008 wrote:
         | This is an appropriate way to handle the incentives. Not
         | keeping par with PWA (as in what is available in modern
         | browsers) is _the_ unfair competitive practice.
        
         | Apocryphon wrote:
         | Realizing Jobs' dream, eh?
         | 
         | https://www.youtube.com/watch?v=p1nwLilQy64
        
       | karmasimida wrote:
       | What is the reasoning behind this????
       | 
       | Can they be more blatant about the Apple Tax they are collecting?
        
       | linuxhansl wrote:
       | Sounds like waylaying to me. Hear me out...
       | 
       | I can see a reasonable processing fee, and even a reasonable
       | establish-the-purchase fee. Perhaps in the order of - or a bit
       | more than - a credit card. So maybe somewhere between 5 and 15%.
       | (Depends on how much more likely users find an apps through the
       | app-store as opposed to a web search.)
       | 
       | Anything above is abusing Apple's market dominating position.
       | Especially because there are no (official) ways to install 3rd
       | party apps on iPhones et al.
       | 
       | Just MHO.
        
         | pixl97 wrote:
         | I personally think we should make it state/federal law that the
         | 'store' fee be printed at the time of purchase.
         | 
         | So when the person clicks the buy button on the app they get a
         | invoice like
         | 
         | Software subscription: 66.66 Apple hostage fee: 33.33
         | 
         | Total: $100
        
       | skeletal88 wrote:
       | It is astounding to see so many people here argue for the 30%
       | apple tax.
       | 
       | It is like the mafia demanding you pay for the privilege of doing
       | business on your street.
       | 
       | 30% is just too much.
       | 
       | My client is selling a service where they are selling a physical
       | product together with something you do with it in the app.
       | Currently the customers buy the service and device in a separate
       | shop and the app is just for the convenience of the user, they
       | could also use a laptop conputer or whatever else. The client
       | wanted to include a link to the shop in the app, but apple
       | wouldn't allow it without their 30% tax. With this 30% cut
       | providing the service for apple users wouldn't make business
       | sense, they would lose money on each sale. Should they have
       | higher prices for iphone users to make up for that?
        
         | 2OEH8eoCRo0 wrote:
         | The profit margins scream lack of competition. In a competitive
         | market you'd have dozens of companies scrambling in the hope of
         | shaving off even 1% of the App store's revenue.
        
         | echelon wrote:
         | People fall in love with Apple the same way they do a sports
         | team or actor. They begin to cheer for it and want their
         | favorite to win all the games, the best roles, the awards.
         | Unfortunately these fields are all zero-sum, and small
         | companies get pulverized by the hits to their cash flow.
        
         | mmar wrote:
         | I wonder how many of those defending Apple position also own
         | Apple stocks.
        
         | vmception wrote:
         | yeah usually the mafia has lower tax rates
        
         | jacquesm wrote:
         | People are arguing for that tax because they genuinely believe
         | that Apple will somehow respond to this in a way that will
         | cause their own income stream to be affected negatively (for
         | instance: if Apple decides to raise the 30% to make up for the
         | shortfall of companies that go outside of their platform).
         | 
         | It's Stockholm Syndrome.
         | 
         | Apple got away lucky that they weren't ordered to be split up
         | and to run their payment service provider as an independent
         | entity. It could still happen, the EU is pretty aggressive when
         | it comes to monopolies overreaching their legal limits or
         | abusing their position.
         | 
         | The various phone operators here have been smacked down pretty
         | hard time and again on things like roaming, service fees and so
         | on. Apple is no different.
        
           | endisneigh wrote:
           | How much money did app developers make before and after the
           | existence of the App Store?
           | 
           | Do the math.
        
             | wavefunction wrote:
             | If my math checks out, it comes out to...? Trust-busting an
             | Abusive Rent-Seeking Monopoly?!?
        
               | endisneigh wrote:
               | Yes I'm sure app developers were making tons before Apple
               | and their rent seeking abusive monopoly.
               | 
               | If it's so abusive for the developers why do they stay on
               | it?
        
               | aspenmayer wrote:
               | If it were only abusive for the developers, why is EU
               | intervening on behalf of all users, including developers?
               | It's harmful to competition, and the harm to developers
               | is the cherry on top.
        
             | AJ007 wrote:
             | Yeah but how much money did Apple make before the iPhone?
             | Maybe they should be paying the telecoms for all this data
             | use.
        
           | rosndo wrote:
           | I'm arguing for the tax because it provides a strong
           | incentive for app developers to stick to Apples payment
           | systems, that's good for me as an end user.
           | 
           | I'm also arguing for the tax because I believe that Apple has
           | the absolute right to collect such a tax, why wouldn't they?
           | They're far from being a monopolist.
           | 
           | Stockholm syndrome? Mobile app development sounds like the
           | last thing I'd want to have anything to do with.
        
             | efraim wrote:
             | Wouldn't 50 % provide an even stronger incentive? Why is it
             | that 30 % is the perfect number?
             | 
             | Apples seems to have that right, but some people are saying
             | that they shouldn't have that right. Laws are possible to
             | change.
        
             | matsemann wrote:
             | > * that's good for me as an end user*
             | 
             | You're probably paying 27% more for your app stuff than you
             | would have to, though. Is that also good for an end user?
        
             | jacquesm wrote:
             | > I'm arguing for the tax because it provides a strong
             | incentive for app developers to stick to Apples payment
             | systems, that's good for me as an end user.
             | 
             | You as an end user are not party to the agreement that
             | Apple has with the developers. You are of course free to
             | choose not to do business with parties that do not support
             | Apples payment system, but the same goes for Stripe,
             | PayPal, Adyen and all the other PSPs.
             | 
             | > I'm also arguing for the tax because I believe that Apple
             | has the absolute right to collect such a tax, why wouldn't
             | they?
             | 
             | Because they are abusing their position to do so.
             | 
             | > They're far from being a monopolist.
             | 
             | Your understanding of what constitutes a de-facto monopoly
             | is broken.
             | 
             | > Stockholm syndrome? > Mobile app development sounds like
             | the last thing I'd want to have anything to do with.
             | 
             | That is your choice and your right, but plenty of high
             | performance and/or low level applications have no choice
             | but to go native.
        
               | mehrdada wrote:
               | > You as an end user are not party to the agreement that
               | Apple has with the developers. You are of course free to
               | choose not to do business with...
               | 
               | Under the same logic, you, as the developer is also free
               | to not do business with Apple and build on iOS.
               | 
               | Or you could see it with the angle that Apple is in
               | effect hired by us, the end-users, to negotiate on our
               | behalf to ensure the ecosystem cannot dictate unilateral
               | terms unfavorable to us.
        
               | jacquesm wrote:
               | Yes, you could see it that way. I'd ask for better
               | glasses though, in that case.
        
               | ThatPlayer wrote:
               | >Or you could see it with the angle that Apple is in
               | effect hired by us, the end-users, to negotiate on our
               | behalf to ensure the ecosystem cannot dictate unilateral
               | terms unfavorable to us.
               | 
               | Then continue to only use Apple App Store and Apple
               | Payments. Free market says if all the end-users truly
               | believe that, all the others will fail from no users. So
               | why is Apple so afraid of a little fair competition?
        
               | rosndo wrote:
               | > You as an end user are not party to the agreement that
               | Apple has with the developers
               | 
               | In the end this will be a political decision. I vote.
               | 
               | > Your understanding of what constitutes a de-facto
               | monopoly is broken.
               | 
               | The monopoly argument _may_ work in the US, but not in
               | the EU. Apple may be up to nasty stuff that legislators
               | should act against, but they're certainly not a
               | monopolist.
        
               | jacquesm wrote:
               | You are getting quite tiring.
               | 
               | https://en.wikipedia.org/wiki/European_Union_competition_
               | law
               | 
               | https://en.wikipedia.org/wiki/Article_101_of_the_Treaty_o
               | n_t...
               | 
               | https://europa.eu/youreurope/business/selling-in-
               | eu/competit...
        
               | cruano wrote:
               | > You are of course free to choose not to do business
               | with parties that do not support Apples payment system
               | 
               | Take a look at the videogames landscape on PC. There is
               | an ever-growing amount of game launchers because each
               | company refuses to pay that 30% to someone (e.g. Steam).
               | Having the option to create a store means almost everyone
               | that can WILL create one. Not having that option forces
               | everyone to play by the rules of the existing store.
               | 
               | As a consumer, I like Steam's policies about refunds, I
               | like being able to buy any game with the same in-store
               | credit or the same credit card, I like their client's
               | features like download throttling or scheduling.
               | 
               | I certainly do not like that each half-assed client comes
               | up with a bare bones implementation of the same thing and
               | calls it a day. If Rockstar shits the bed and launches a
               | terrible game, I can refund it on Steam but not on the
               | Rockstar launcher.
               | 
               | Same case for Apple, the minute they allow external
               | stores, half the apps will be pulled from the App Store
               | into their own proprietary store and all the consumer
               | protection would go out the window
        
               | ThatPlayer wrote:
               | >Not having that option forces everyone to play by the
               | rules of the existing store.
               | 
               | So what you want is a convenient monopoly, when there is
               | no such thing (unless it's under heavy government
               | regulation). As a consumer, I like Epic's free games.
               | GoG's policy of DRM-free. Which is why competition is
               | good.
        
           | zepto wrote:
           | No, people are arguing this because they think the 15%
           | represents good value compared to what you would have to do
           | as an indie developer to support multiple stores and payment
           | methods.
        
         | ravenstine wrote:
         | It's a mindset I'll never fully comprehend myself.
         | 
         | Supposedly I did work to earn a profit, but clearly not so much
         | work that I shouldn't thank whatever system I'm subject to for
         | the _privilege_ of... making a transaction that barely involved
         | said system, if at all.
         | 
         | 5% or even 10% would be more acceptable. But _30%_? lol For
         | what? There 's no way the vast majority of that cut is
         | necessary for Apple's financial operations or for them to make
         | a reasonable profit. How some people can't see this as greed is
         | mind blowing. Where do they draw the line?
        
           | dageshi wrote:
           | I'll tell you honestly why. It's because if they charged 5%
           | or 10% it wouldn't be worth Apples time.
           | 
           | If they can't make 30% on the app store they'll go do
           | something else which will make them 30%+ and leave it to rot.
           | Because 5% or 10% is a commodity business and they can do
           | better than that.
        
             | kybernetyk wrote:
             | Well, the Mac software landscape flourished before Apple
             | had an app store. I wouldn't mind if they just gave up and
             | let people distribute software how God intended.
        
               | threeseed wrote:
               | Yes the Mac flourished with it's 5-10% market share.
        
             | MisterBastahrd wrote:
             | If there was something else that they could be making that
             | kind of money for that little work, they'd already be doing
             | it. Apple got lucky with a lock-in ecosystem and they
             | obviously design great hardware, but I don't see them just
             | up and deciding to dominate another market to make similar
             | profits just because they're Apple.
        
             | temac wrote:
             | Above something that is probably quite marginal this is
             | basically free money for Apple. What are you comparing 30%
             | to? Profit vs gross income? That's not what the 30% are
             | here. That's 30% of an amount which depends on:
             | 
             | * a market that is so large that in a bunch of area it is
             | basically not limiting - Apple has an influence on that but
             | capturing so much value on 3rd party apps should not be
             | warranted IMO, otherwise it would be warranted for them to
             | also capture a big part on most of software for MacOs sales
             | (esp. since the configuration by default is now quite
             | secure so the argument that the App Store for iPhone is so
             | valuable because it is curated is getting weaker) and for
             | MS to capture a big part on most of software sales for
             | Windows (and maybe give some crumbs to PC hardware
             | manufacturers)
             | 
             | * the success of 3rd party apps, most of which has not much
             | to do with Apple
        
           | NovemberWhiskey wrote:
           | Yours is a mindset that I'll never understand. You appear to
           | believe that the price of a thing should be related to the
           | marginal cost of the seller. Whereas, in reality, it's only a
           | question of what a buyer will pay and what a seller will
           | accept.
           | 
           | When you look at an airline that's about to fly a plane with
           | twenty empty seats, do you say "sheesh, it's totally
           | unreasonable that seat is selling for anything more than
           | zero, it costs the airline nothing to have someone sit in it,
           | the greed is mind-blowing"?
           | 
           | Maybe you do?
        
             | virgilp wrote:
             | > Whereas, in reality, it's only a question of what a buyer
             | will pay and what a seller will accept.
             | 
             | Which is why you don't have to let a monopoly/oligopoly set
             | the price at will, they need to be regulated. Smartphones
             | are becoming essential tools in many people's lives, and
             | there are only 2 main providers; they need to be regulated.
             | You can argue at the exact regulation but this Apple move
             | has proved beyond doubt that we (as a society) need to
             | impose tough regulations on them; because by themselves,
             | they're not going to be reasonable, they're looking to
             | extract maximum feasible rent.
        
               | kybernetyk wrote:
               | This. And before some libertarian starts rambling about
               | how not to regulate stuff: I'm an libertarian myself and
               | the current tech monopolies are only possible because of
               | the state's intervention in the free market. Without
               | ridiculous copyright and patent laws we wouldn't have
               | those monopolies we see right now.
               | 
               | So yeah, as long as there's state intervention in the
               | free market let the state regulate bad actors. I would be
               | glad if it all went away but reality is that we have to
               | live with this system.
        
               | NovemberWhiskey wrote:
               | >Which is why you don't have to let a monopoly/oligopoly
               | set the price at will
               | 
               | Even monopolies are generally allowed to set their own
               | prices; it's only the point at which there's abuse that
               | there's a regulatory concern. The argument that Apple is
               | looking to "extract maximum feasible" rent is undermined
               | a bit by some facts I discuss in one of my comments
               | elsewhere in this thread.
        
             | ravenstine wrote:
             | > Whereas, in reality, it's only a question of what a buyer
             | will pay and what a seller will accept.
             | 
             | I didn't say that's not what determines a price.
             | 
             | > When you look at an airline that's about to fly a plane
             | with twenty empty seats, do you say "sheesh, it's totally
             | unreasonable that seat is selling for anything more than
             | zero, it costs the airline nothing to have someone sit in
             | it, the greed is mind-blowing"?
             | 
             | No. Plane tickets are quite cheap regardless when you
             | consider the amount of force involved in lifting that much
             | weight into the air across the planet. Even when it's more
             | expensive, I'm saving a ton of time compared to if I drove
             | my car across country and back, making even pricier tickets
             | worth it. In fact, the way I look at it, a plane with a
             | bunch of empty seats is a good thing because that allows
             | people to make last-minute travel plans. If one had to
             | reserve a plane ticket months in advance, that'd be pretty
             | lousy.
             | 
             | So perhaps that was just a bad example.
             | 
             | Here's the flaw in your oversimplifying of the argument.
             | The price being as simple as what the buyer is willing to
             | pay for is only adequate when you ignore the seller's level
             | of monopolism and the market incentives that drive the
             | buyer to taking it in the rear. Apple not only dominates a
             | massive percentage of the mobile phone market, but they
             | along with Google have created systems where your digital
             | service is unlikely to be successful unless you play their
             | game... because they are oh so concerned about the safety
             | of the end user. And app that's not found in the App Store
             | is never going to reach widespread use because even Android
             | users don't really want to use apps their friends who have
             | iPhones can't interact with them on. Even if you host
             | binaries on your own site, good luck having iOS users
             | figure out how to side-load the app or even have the
             | courage to do so.
             | 
             | Would you be fine if your bank just ripped off 1/3 of your
             | income? After all, what are you gonna do? Use cash for
             | everything and be closed off from the modern economy? Sure,
             | you can do that. But does that mean that this hypothetical
             | banking system isn't ripping you off regardless of if you
             | choose to pay it? It's a large amount of value that the
             | buyer earned that the seller arguably didn't earn. In the
             | case of Apple, they effectively get a 30% share in every
             | company that hosts an app in the App Store because at any
             | moment Apple can just say "nah" and delete the app.
             | 
             | But sure... let's have a society where everything's a free-
             | for-all and we don't regulate scams and ripoffs because
             | _the buyer was willing to pay for it._
             | 
             | EDIT: I now realized what I said was on the snarky side...
             | I changed it but left some of it and hope you're not
             | personally offended or anything.
        
             | passivate wrote:
             | I do not know which reality you are referring to. There are
             | various laws in the US related to pricing, price gouging,
             | price controls, etc.
        
             | hnra wrote:
             | That equivalence is awful. What is the profit margin of
             | airlines vs the app store? There is a real cost to an
             | airline seat, and there is a real cost to publishing an app
             | on an app store (and all that it entails). The difference
             | here is that airlines have tons of competition driving down
             | margins, while no one is allowed to compete with Apple for
             | iOS customers.
        
               | NovemberWhiskey wrote:
               | The existence of large profit margins is not prima facie
               | indication of a lack of competition. Apple makes a huge
               | profit margin on iPhones but I don't think there's anyone
               | who suggests that the smartphone market is uncompetitive.
               | To that extent, the first part of your point doesn't
               | really hold up.
               | 
               | On your second part: one of the defining qualities of a
               | retail store experience is, in my experience, that no-one
               | is allowed to compete with the owner of the store. No-one
               | would say it is uncompetitive that the owner of a
               | supermarket doesn't allow you to put your own goods on
               | their shelves.
               | 
               | Presumably your point is really that Apple's App Store is
               | such a large fraction of the total smartphone app market
               | that it has, and uses, monopoly pricing power in abusive
               | way. That's a more interesting point.
               | 
               | The fact that's interesting to me is that, as far as I
               | know, since Apple created the App Store, it has always
               | charged 30% (modulo the recent small business program);
               | from the very beginning when the market was practically
               | non-existent, with no guarantee of success, up until
               | today. So despite the fact the market has grown from
               | nothing, Apple hasn't sought to increase their fees.
               | 
               | Also, look at comparison points. If you look at PC video
               | games, those can often be bought in physical form,
               | downloaded direct from their publishers, etc. etc. I mean
               | to say there is no restriction on alternative sales
               | channels. Nonetheless, a huge number of game developers
               | choose to sell on Steam; where, coincidentally, the store
               | cut is also 30%. They complain about it, but they do it.
        
               | Gorbzel wrote:
               | > while no one is allowed to compete with Apple for iOS
               | customers.
               | 
               | This is basically the core question in Epic vs Apple,
               | wherein the court has ruled that "iOS Customers" is not
               | the relevant market to consider.
        
           | threeseed wrote:
           | It's 15% for developers making up to $1m a year.
           | 
           | And you are paying for the cost of the channel i.e. customer
           | acquisition.
        
             | passivate wrote:
             | You can show an online ad on any platform to acquire a
             | customer. Apple is greedy grabbing 30% of sales.
        
         | kmlx wrote:
         | > 30% is just too much.
         | 
         | i see you never had to deal with retailers.
        
         | weberer wrote:
         | >It is like the mafia demanding you pay for the privilege of
         | doing business on your street. 30% is just too much.
         | 
         | Or like the IRS
        
         | [deleted]
        
         | AniseAbyss wrote:
         | It would be FAIR if you could charge iPhone customers more than
         | Android customers but Apple is not stupid. The small print in
         | your contract forbids just that.
        
           | scarface74 wrote:
           | They stopped that almost a decade ago. When Spotify still
           | allowed in app purchases , they charged more than on their
           | own website.
        
         | awildfivreld wrote:
         | > It is like the mafia demanding you pay for the privilege of
         | doing business on your street
         | 
         | If Apple were to add this tax or raise it long after launch I
         | could perhaps see this argument.
         | 
         | However, this tax is nothing new. AFAIK it has been like this
         | for _years_. App developers must have known (before starting
         | development) that there is a fee if you were to use the
         | platform.
         | 
         | If you knew a certain street has mafia activity (or other
         | similar taxes), would you make the concious choise of moving
         | your store there? Well, if the business opportunuties are good
         | enough, then it might be worth it. If the mafia suddenly showed
         | up, then the equation could be different. This is just like any
         | other business investment analysis.
         | 
         | If 30% is too much all in all, then it is unsustainable to keep
         | the app store as an option.
        
           | zachrip wrote:
           | App developers don't get to choose which platforms their
           | users are on. There's a reason why things like react-native
           | mainly target ios and android - that's where the users are.
           | That is why people compare it to the mafia, you have to do
           | business there, which means you have to pay them. Where are
           | you finding users that aren't on android/ios?
        
       | BiteCode_dev wrote:
       | If they do it, it's because they know they can get away with it.
       | They studied the risk and cost associated with a lawsuit, and
       | estimated it was more profitable to keep the commission high.
       | 
       | Which is one more hint that our legal system is not working as it
       | should. It is completely ineffective at enforcing laws above a
       | certain threshold of power.
        
       | amelius wrote:
       | > it is anti-competitive behavior that they themselves would
       | never tolerate
       | 
       | TSMC should force Apple to pay a 30% tax, and if they don't
       | comply, kick them out of the FabStore.
        
         | thathndude wrote:
         | But developers do tolerate it, and that's the problem. And they
         | tolerate it because there's immense value there.
        
           | clusterfish wrote:
           | There was "immense value" in every monopolist that was
           | rightfully broken up or restricted. There's "immense value"
           | in every monopoly / duopoly market. So what. The richest
           | company in the world is swimming in money, pays little taxes,
           | and gouges every developer who made its products successful.
           | They are nothing without the developers, they're simply in a
           | good position to abuse them, a position that they carefully
           | crafted for themselves.
        
             | amelius wrote:
             | On top of that, we really don't want to be in a situation
             | where every large software producer has to create their own
             | phone to maximize their income. It would be a terrible
             | waste of resources. What Apple wants to own can't be owned.
        
           | jacquesm wrote:
           | Until there isn't and then they should be free to take their
           | payment services elsewhere because a 30% cut to your payment
           | provider makes no sense.
           | 
           | The value is there but then again, Stripe and other PSPs
           | provide much of that same value at a much better price point,
           | and that's because there is competition in the realm of
           | payment processing.
        
           | apexalpha wrote:
           | Developers "tolerate" it in the same way that I tolerate
           | having my income taxed. You really don't have a choice.
        
           | jb1991 wrote:
           | There is definitely _some_ value to the App Store and Apple
           | 's management of it and the payment service, listing, etc.
           | But I would not say it is "immense" value, and 30% is _a
           | lot_.
        
           | sunderw wrote:
           | Well they tolerate it because there is no other choice. You
           | can't say f** all the apple users.
           | 
           | Would you have the same argument if Windows took a 30% cut of
           | all transactions that happened on "their platform" ?
        
             | interpol_p wrote:
             | It's not the number of Apple users that matter. There are
             | many more Android users world wide. It's the fact that
             | Apple users spend more, and more often than users on other
             | platforms.
        
               | spiffytech wrote:
               | Phone market share has different distributions in
               | different markets. In the US it looks like the iPhone
               | hovers around 50% marketshare. That's pretty significant
               | to ignore.
               | 
               | Then there are the network effects. Many apps have a
               | social component, and if your app isn't on iPhone you'll
               | only get the customers who both use Android and who never
               | want to collaborate with iPhone-owning
               | friends/family/coworkers.
               | 
               | This is of course true for iPhone-only apps, too, which
               | is why folks argue Apple and Google are a duopoly: it's
               | infeasible to succeed in the mobile market without
               | bending to the gatekeepers, and they don't give anyone
               | the market power to force them to change.
        
             | Spivak wrote:
             | I mean you absolutely can. If the commission was 90% would
             | you still pay it? Hell nah. Apple knows it's still worth it
             | to most publishers at 30%.
             | 
             | And yes, if Windows wanted to charge 30% then go for it. It
             | is their platform.
        
         | ksec wrote:
         | Apple Apple argue buying iPhone was only the hardware while 30%
         | cut was for their IP. And yet accuse Qualcomm charging them 5%
         | for IP and selling them hardware modem ( with rebate ) as
         | double dipping.
        
       | rocketChair wrote:
       | Apple, and two other companies, are now taking out rent for
       | computing. That's not how the world should work.
       | 
       | I like some of their products, but these companies have to be
       | curtailed.
        
         | Workaccount2 wrote:
         | The path that computing is on is "You will buy a screen, pay
         | monthly for internet access, and then pay monthly to access a
         | cloud service where you access all your SaaS applications.
        
           | [deleted]
        
       | jacquesm wrote:
       | They're nuts. All they are doing is setting themselves up for
       | another set of lawsuits.
       | 
       | Seriously: Apple should focus on selling hardware and be happy to
       | facilitate those payments that people - and application
       | developers - voluntarily process through their system.
       | 
       | All this stupid taxation of other peoples' businesses should
       | stop, it is anti-competitive behavior that they themselves would
       | never tolerate.
       | 
       | Imagine if in the past Apple would have had to pay 30% of their
       | gross to Microsoft in order to be allowed to run their software
       | on Windows.
        
         | sekathlon wrote:
         | Nonsense. Most of those businesses only exist because of the
         | App Store. Apple can ask whatever they want as users can buy
         | whatever they want. There is no need for whining.
        
           | ketralnis wrote:
           | This is clearly bullshit. There was a software industry
           | before Apple came along.
        
             | threeseed wrote:
             | Not a mobile software industry though.
             | 
             | And I know because I developed an app for Palm.
        
         | [deleted]
        
         | pbreit wrote:
         | 27% versus 30% for cards?
        
         | huhtenberg wrote:
         | > _They 're nuts._
         | 
         | They aren't nuts. It's a middle finger to the legislators.
        
           | virgilp wrote:
           | > It's a middle finger to the legislators.
           | 
           | I.e. they're nuts.
        
             | rmbyrro wrote:
             | They're not. Apple is essentially acting like a government,
             | and they're certainly way more powerful than the Dutch
             | government:
             | 
             | - They have an income tax -- 30% (wait until they come up
             | with a capital gains tax, and a property and inheritance
             | tax as well)
             | 
             | - Use monopoly of "force" by removing us if we "evade
             | taxes"
             | 
             | - Have their legislation branch to come up with their own
             | set of "laws" - they call it "terms", but can't be "terms"
             | if we have to swallow it without coming to terms with it
             | 
             | - Their judiciary branch judge our actions with no recourse
             | 
             | - Have their executive branch to put into practice what
             | their judicial branch decides (usually in an automated
             | fashion)
        
               | virgilp wrote:
               | Netherlands has a strong voice in the EU; I'm betting
               | that Apple doesn't want to cease all business in the EU.
               | Heck, they bent to China.... they'll bend to EU, make no
               | mistake.
               | 
               | This is an mind-blowingly-risky move on Apple's part.
               | They show malice here - if they are acting like a
               | government, they invite governments to fight them. I.e.
               | they're nuts.
        
               | Apocryphon wrote:
               | And it's not even just the EU. The U.S., South Korea,
               | Australia, India, Russia- a lot of countries and markets
               | are taking notice. This is a global phenomenon. The
               | sharks are circling.
        
         | alexashka wrote:
         | Is it nuts? Or is it just business as usual?
         | 
         | There's a department and the head of that department's
         | responsibility is to make the profit number go up.
         | 
         | So, he/she is doing just that.
         | 
         | It'd be nuts if that _didn 't_ happen, _that_ would be nuts.
        
         | markus_zhang wrote:
         | The point of making competitive mobile hardware is to make sure
         | users stick to it so you can extract values from left and
         | right.
        
         | [deleted]
        
         | zepto wrote:
         | The problem is that people can easily be induced to install
         | software that negates the benefit of Apple's hardware. Apple
         | can't deliver their hardware benefits without also controlling
         | the operating system.
         | 
         | It's as simple as that.
        
           | hn_throwaway_99 wrote:
           | > Apple can't deliver their hardware benefits without also
           | controlling the operating system.
           | 
           | Nobody is talking about loading something besides iOS on
           | Apple mobile devices. The argument that "The OS is
           | everything" failed over 20 years ago in US v Microsoft.
        
             | zepto wrote:
             | That's irrelevant.
             | 
             | It would be simple enough for Facebook for example to build
             | a store into their own App, and build their own 'platform'
             | within the Facebook app.
        
               | Apocryphon wrote:
               | So you mean how WeChat and Alibaba do it, and are allowed
               | to do so by the App Store. Then why hasn't Meta done
               | that? Perhaps they don't care to? Not that the Facebook
               | app isn't already hugely overstuffed.
        
               | fxtentacle wrote:
               | Because Apple bent down for WeChat and Alibaba, but Apple
               | won't do it for Facebook?
               | 
               | I'm 100% sure that if Facebook could have an iOS app
               | store, they would start one. It's worth all the work for
               | the improved tracking alone, as app download ads are a
               | big part of Facebook's mobile revenue.
        
               | Apocryphon wrote:
               | The GP is talking about Meta embedding its own app store
               | within the Facebook app, not about Facebook creating its
               | own iOS app store. An "internal" app store would still be
               | subject to the same restrictions and security that the
               | actual Apple App Store already has. I don't believe the
               | mini-apps within WeChat or Alibaba's apps can flout those
               | regulations, but it's China and those are big apps so who
               | knows.
               | 
               | From a technical perspective, I'm not sure how hosting
               | littler apps within your own app, which is already on the
               | Apple App Store and subject to its review process and
               | rules, would allow you access to improved tracking.
               | 
               | On the subject of a Meta third-party app store
               | independent of Apple's control- yes, there is motivation
               | there to do that, but I am dubious of how much of a
               | threat that is to the end user because:
               | 
               | 1. Apple still maintains control of iOS and can restrict
               | invasive tracking from the OS level.
               | 
               | https://news.ycombinator.com/item?id=30199125
               | 
               | 2. I'm not actually convinced that Meta, Google, Amazon,
               | et al are really capable of executing successful
               | alternative app stores. They would need to make it a
               | sufficiently seamless and friction-free experience, _and_
               | offer enough incentives for users to overcome having to
               | sign up for yet another service just to use the apps they
               | already have access to.
               | 
               | https://news.ycombinator.com/item?id=30204012
        
           | manuelabeledo wrote:
           | > The problem is that people can easily be induced to install
           | software that negates the benefit of Apple's hardware. Apple
           | can't deliver their hardware benefits without also
           | controlling the operating system.
           | 
           | Apple is less concerned about this than profits.
           | 
           | They could make their hardware ecosystem more open, that's
           | easy, but that wouldn't make them a significant amount of
           | extra money, so why would they?
        
             | zepto wrote:
             | You don't seem to realize that Apple's profits come mostly
             | from hardware sales.
        
               | fxtentacle wrote:
               | They don't. They come from the new "Services" division.
        
               | manuelabeledo wrote:
               | They don't, but even if they did, that has nothing to do
               | with my comment.
        
         | jsnell wrote:
         | Is it really nuts though? This should be a completely
         | unsurprising move, given this is exactly what Play Store did in
         | South Korea [0]. That's three months old, has anyone heard of a
         | followup suggesting their solution is being treated non-
         | compliant by the regulators? This solution also seems to be in
         | line with what the US courts found in the Epic vs. Apple case.
         | 
         | > Imagine if in the past Apple would have had to pay 30% of
         | their gross to Microsoft in order to be allowed to run their
         | software on Windows.
         | 
         | Anyone making software for the Xbox has to pay Microsoft. Why
         | is this different?
         | 
         | [0] https://developers-kr.googleblog.com/2021/11/enabling-
         | altern...
         | 
         | Edit: Good grief, people. I am not pro-App Store. But jacquesm
         | is literally claiming that Apple is nuts and that their
         | solution will never fly. But everything we've seen so far in
         | analogous cases suggests it will.
        
           | 908B64B197 wrote:
           | > Anyone making software for the Xbox has to pay Microsoft.
           | Why is this different?
           | 
           | Historically, writing software for the Xbox meant getting dev
           | kits not sold to the public as well as access to private
           | documentation. And there was a level of support from
           | Microsoft game studios could expect. The deals between
           | studios and Microsoft could also include co-marketing or
           | exclusivity. Plus to get an Xbox tittle out you needed a
           | distributor (remember brick and mortar stores) so it really
           | was B2B. Today I wouldn't be surprised to see Microsoft just
           | going with the Store model and taking a very small cut from
           | indies. But distribution is nowhere as hard and expensive as
           | it was back in 2001.
           | 
           | I really don't think it's the same as Apple that advertise
           | it's developer program to individuals. Apple's developer
           | program almost seems like a consumer product (term and
           | conditions are pretty much the same for every individual dev
           | out there, it's a flat fee).
        
           | PretzelPirate wrote:
           | I think that the Xbox should be an open platform. Microsoft
           | has built in enough sandboxing and security that I'd hope
           | they could handle arbitrary downloads while offering their
           | store + online services for games that use their store
           | (provide actual value for their cut).
           | 
           | It's not like they make money off of the hardware, and their
           | new push is in Gamepass subscriptions which people will still
           | want.
           | 
           | There will of course be people who pirate, just like they do
           | on the switch, but piracy is likely to be so small that it
           | won't affect Microsoft's profits.
        
             | kmlx wrote:
             | > It's not like they make money off of the hardware
             | 
             | microsoft hasn't made any money off of the whole xbox
             | ecosystem since it's inception 20 years ago. it's been loss
             | making since day zero.
        
               | vhgyu75e6u wrote:
               | Quotations needed please. You are not 20 years in an
               | industry without making a buck
        
               | spywaregorilla wrote:
               | They make it up on software royalties
        
             | threeseed wrote:
             | > but piracy is likely to be so small
             | 
             | Odd take given how rampant piracy is within the PC gaming
             | market.
             | 
             | Losing a similar percentage of sales in consoles would
             | absolutely make it unprofitable for smaller developers.
        
               | clusterfish wrote:
               | Right because you have data to show that piracy takes
               | away more than 30% of small devs' desktop games' revenue?
               | Given that most pirates wouldn't actually buy it if they
               | had to pay?
               | 
               | Smaller developers publish PC games just fine, you know,
               | choosing whichever store they like most, or choosing to
               | entirely self publish. This is how it should be
               | everywhere.
        
           | theli0nheart wrote:
           | > _Anyone making software for the Xbox has to pay Microsoft.
           | Why is this different?_
           | 
           | It's different because Apple sells and markets their hardware
           | as general-purpose computing devices. An Xbox is a gaming
           | console and that's what it's sold and marketed as.
        
             | SllX wrote:
             | To my continued disappointment, this is exactly how they
             | have _not_ marketed iPhones since the beginning.
        
               | clusterfish wrote:
               | "A general purpose computer is a computer that is
               | designed to be able to carry out many different tasks."
               | 
               | "There's an app for that"
               | 
               | Seems pretty straightforward that they did. Them doing
               | their best to lock down the ecosystem for profit does not
               | make the device non-general-purpose.
        
             | 30204604 wrote:
             | >Apple sells and markets their hardware as general-purpose
             | computing devices
             | 
             | Could you point to what makes you think this? As well, are
             | there any court rulings that indicate this matters when it
             | comes to this issue?
        
               | nightski wrote:
               | The fact that they provide development tools and almost
               | anyone can write an app for it?
               | 
               | Xbox is not open to anyone to develop on. It's very
               | closed to new developers and expensive.
               | 
               | FWIW - I think Xbox should be forced to open up it's
               | platform as well, not be used as a justification for
               | closed computing platforms.
        
               | threeseed wrote:
               | Xbox is very simple and affordable to develop for. On par
               | with iOS actually.
               | 
               | How do you think all of the tiny indie studios build
               | games ?
               | 
               | [1] https://docs.microsoft.com/en-us/gaming/xbox-
               | live/get-starte...
               | 
               | [2] https://www.xbox.com/en-AU/developers/id
        
               | [deleted]
        
               | [deleted]
        
               | nirvdrum wrote:
               | Apple ran an ad campaign with the message "Your next
               | computer is not a computer": https://youtu.be/awTP7IUY3uo
        
               | kmlx wrote:
               | that's just one of many ad campaigns, plus a computer is
               | not by definition a general purpose device.
        
               | nirvdrum wrote:
               | I cited one campaign that very clearly answers the
               | question posed. It was not incumbent on me to go through
               | all of their campaigns and conferences and earnings calls
               | and whatever else. Although, this campaign was hardly the
               | first time Apple suggested their mobile devices could
               | replace a computer.
               | 
               | > plus a computer is not by definition a general purpose
               | device.
               | 
               | What are we even talking about then? It's not like this
               | campaign was suggesting the iPad would be a fantastic
               | purpose-specific replacement of my TI-89 or my web cam.
               | What, based on the context of this discussion, are we
               | supposed to understand "general purpose device" to mean
               | if not the colloquial definition of a computer?
        
               | SllX wrote:
               | I looked at that ad you posted earlier and refrained from
               | commenting at the time, but if you take the ad at face
               | value, Apple is claiming that iPads are _not_ computers,
               | or at least not the general purpose ones that culturally
               | we refer to as computers (desktops, notebooks) and do
               | this in both the slogan ("your next computer is _not a
               | computer_ ") and by demonstration, inviting the user to
               | think of iPads as something else. It's not an ad for
               | tablet computers, it's an ad for iPads.
               | 
               | Technically, iPhones and iPads are absolutely computers.
               | General purpose computers. In fact arguably they are even
               | more general purpose because you can easily and non-
               | trivially manipulate them in 3D space in ways you
               | probably wouldn't even manipulate a notebook computer,
               | which makes the inclusion of various sensors in the body
               | of the device more useful to a broader array of
               | applications. I will absolutely use my phone as a wallet
               | in the way I never would a MacBook Pro. Apple has
               | absolutely never marketed them as general purpose
               | computers though even though I think you and I can agree
               | that's exactly what they are. Duplicitous? I think so,
               | but it's also the exact same strategy that game consoles
               | benefit from today and in either case I think both Apple
               | and game console makers are at the moment on solid legal
               | footing.
        
               | nirvdrum wrote:
               | We'll have to agree to disagree. This ad to me looked
               | just like the "Mac VS PC" ads, where Apple wanted to
               | convey to you that their personal computers weren't
               | "PCs", but something else, something better. But, they
               | very clearly were advertising the product as a
               | replacement computer.
               | 
               | They want people shopping for iPads, not tablet
               | computers. I'll grant you that, but that's just a
               | marketing gimmick as far as I can tell. This ad to me
               | says "don't bother with another laptop because the iPad
               | can do the same stuff, but better (and you might look
               | really cool using it)." It's a marketing campaign, so
               | it's going to resonate with people differently.
               | 
               | I still don't know anyone that went out and purchased an
               | Xbox to replace their laptops, but I know plenty of
               | people that have done so with iPads. And they're checking
               | email, commenting on Facebook, taking pictures, editing
               | video, surfing the web, managing todos, making video
               | calls, watching video streams, playing games, and doing
               | many other activities that they used to on a laptop or
               | desktop, while Xbox users play video games, maybe consume
               | media, and possibly deal with being called racist names
               | on a voice chat.
        
               | SllX wrote:
               | We probably will have to agree to disagree, but I'm
               | trying to see the message I think Apple intended to sell
               | and I think trying to sell a replacement _for_ or an
               | alternative to computers is a lot more in line with how
               | they've always marketed iPads. The reason to look at
               | their intended message specially is because this is the
               | marketing gimmick that colors their PR and lobbying
               | campaigns.
               | 
               | I don't think it is severable from the manner console
               | manufacturers operate either. They sell locked down
               | computers with operating systems and license the software
               | that can operate on it. In terms of functions and
               | capabilities, they're as Turing complete as any other
               | machine, you just have to jump through extra hoops to run
               | unlicensed software and they take explicit action to
               | prevent this or make it more difficult.
               | 
               | The intended use is basically irrelevant. A device that's
               | there to operate Facebook or Spotify or a device that's
               | there to operate Halo or HBO is functionally still just
               | an entertainment device. Where they significantly differ
               | is that Apple licenses a broader array of software and
               | Sony, Microsoft and Nintendo license mostly entertainment
               | software (games, video apps, music apps and comic book
               | readers). If you actually bought an Xbox to do the
               | functions you could on a Windows PC, you would be
               | disappointed but not because there's some inherent Xbox
               | property preventing this, but because Microsoft does not
               | license Xbox software in the manner Apple does iPhone and
               | iPad software nor allow unlicensed software to run the
               | way it does on Windows. That's a corporate choice, and
               | because that corporate choice was made, it would be a bad
               | choice to buy an Xbox for those functions or else some
               | people might actually choose to use an Xbox to check
               | their email or do whatever else they do on their PCs. If
               | you think about it, $500 is not bad for a decent gaming
               | computer that lets you get rid of your PC.
        
               | scarface74 wrote:
               | So you would be okay if Apple just opened up the App
               | Store for iPads?
        
               | nirvdrum wrote:
               | I think it was pretty evident that computers were going
               | to continue to get smaller, handheld, wearable, what have
               | you. Apple didn't invent the space, they just made the
               | product that got people to adopt the new form factor en
               | masse. That's no small thing. But, I don't think they
               | deserve near full control and a 30% tax on all revenue
               | transacted on that form factor as a result. We wouldn't
               | have tolerated it if Microsoft had done it on the desktop
               | environment. We wouldn't have tolerated if Microsoft
               | forced all purchases through their platform.
               | 
               | We've backed ourselves into a weird spot. It's
               | essentially impossible for a new platform to develop in
               | the computing space. Google did everything it could to
               | kill off Windows mobile. Mozilla took a crack at it and
               | failed. There's an illusion of choice, but it's quite
               | difficult to get by without an Android or iPhone. That
               | became very evident to me with the pandemic. Virtual
               | doctor visits, check-ins, mobile passports, and so
               | required a device running one of Android or iOS/iPadOS.
               | My wife isn't fond of smart phones, but we had to get her
               | an iPhone to participate in society. Companies don't want
               | to support web sites for mobile and Apple's support for
               | PWAs is pretty bad, forcing you back into their app
               | ecosystem. Moreover, switching platforms is quite
               | expensive and often impractical, in no small part because
               | your purchases are bound to a particular platform
               | (desktop licenses, on the other hand, often work across
               | operating systems or charge a nominal fee to have
               | licenses for macOS and Windows).
               | 
               | That's a very long-winded way of saying, sure let's start
               | with opening up the App Store for iPads. I think we
               | should do it for phones, too, but I'll take what I can
               | get. For many people, their phone is their "computer"
               | these days as well and as I said, I think that result was
               | inevitable. We can argue about whether smart phones are
               | general computing devices, but I'd argue the only reason
               | they're not as "general" as desktops is because Apple
               | won't allow them to be. Microsoft and Samsung both had
               | interesting technologies (Continuum and Dex,
               | respectively) that could turn your phone into a portable
               | desktop that showed promise for what the space could be.
               | But, people make do with the restrictions placed on them,
               | if for no other reason than switching is expensive and
               | hard.
               | 
               | Regardless, smart phones a completely different class of
               | device than video game consoles. People run many of the
               | same tasks on phones & tablets that they would on a
               | laptop. Despite that, video game consoles are more open.
               | I can buy video games from a dozen different stores, get
               | them on a secondary market, and I can lend them out to
               | people. But, let's open up the consoles too if that's
               | what's holding us back with Apple and Google.
        
             | [deleted]
        
             | scarface74 wrote:
             | Apple sells a device that is called an i _Phone_ how is it
             | any more general purpose than a powerful computer sold as a
             | game console?
             | 
             | Heck most of Apple's App Store revenue comes from games.
        
               | Apocryphon wrote:
               | Even from the beginning it was more than a simple phone.
               | It was at least a phone, an iPod, and a breakthrough
               | internet communications device.
               | 
               | https://www.youtube.com/watch?v=MnrJzXM7a6o
        
               | scarface74 wrote:
               | But it didn't have an App Store....
               | 
               | You could always "sideload music"
        
             | pininja wrote:
             | What do I know, but I see Xbox as more than a gaming
             | machine with its steaming and web browsing features, and
             | iOS as less than general-purpose since I can't execute code
             | outside of a very narrow and curated api. OSX is general
             | purpose, no doubt, but I'm not sure it's relevant since I
             | can basically run whatever I can compile.
        
           | Tijdreiziger wrote:
           | > That's three months old, has anyone heard of a followup
           | suggesting their solution is being treated non-compliant by
           | the regulators?
           | 
           | Yes, reported on yesterday by Reuters [1]:
           | 
           | > As for Google's plan, the official said the KCC was aware
           | of concern over Google's planned policy of only reducing its
           | service charge to developers by 4 percentage points when
           | users choose an alternative billing system, and the regulator
           | is waiting for additional information from Google.
           | 
           | > "As a result of any policy, if app developers find it
           | realistically difficult to use an alternative payment system
           | and resort to using the dominant app store operator's payment
           | system, it would not fit the law's purpose," the official
           | said, adding that this stance would likely be reflected in
           | the final ordinance.
           | 
           | [1] https://www.reuters.com/technology/skorea-seeks-improved-
           | com...
        
           | clusterfish wrote:
           | Why? Because how much you have to pay is determined by how
           | much the platform owner can get away with. There is no
           | fundamental logic to it other than market power. Why don't
           | you compare to better, open platforms instead - desktop apps,
           | the web. Why does everything has to be as shitty as something
           | else.
        
             | jsnell wrote:
             | I'm not comparing to those other cases because the question
             | being asked was "what if Microsoft had been charging a
             | fee", so it seems rather relevant that Microsoft has been
             | charging exactly that kind of a fee for a couple of
             | decades.
             | 
             | I hope we can agree that laws need to apply to everyone
             | equally. For a long time, it's been fine for platform
             | owners to charge e.g. licensing fees, for store owners to
             | charge a fee, etc. Why is Apple different, such that they
             | cannot charge such a fee while others can? If they're not
             | substantially different, do we expect that going forward
             | nobody can charge a fee?
        
               | shkkmo wrote:
               | > I'm not comparing to those other cases because the
               | question being asked was
               | 
               | The question being asked was specifically about windows,
               | and wasn't about Microsoft being "good", but rather about
               | how Apple benefited from platforms being open.
               | 
               | > If they're not substantially different, do we expect
               | that going forward nobody can charge a fee?
               | 
               | That seems reasonable.
        
               | stale2002 wrote:
               | > Why is Apple different, such that they cannot charge
               | such a fee while others can?
               | 
               | The difference is market power.
               | 
               | Yes, literally if a company is big enough, then they
               | should be legally prevented from doing certain things
               | that anti-competitively take advantage of it's market
               | power.
               | 
               | For video game consoles, I am less concerned about the
               | platform taking a fee, because there are 3 major
               | consoles, as well as an absolutely huge PC gaming market,
               | and the PC gaming market is very open
               | 
               | Where as for smartphones I am concerned, because it is a
               | 2 company duopoly, and there is no major open competitor,
               | with significant market share.
        
           | elliekelly wrote:
           | Doesn't Google allow alternative app stores to be loaded onto
           | Androids though? If that's the case I'm not sure the
           | comparison makes sense because consumers aren't forced to use
           | the Play Store to install software. Give Google 30% of sales
           | or have no sales at all the way it is for iPhone developers.
        
             | wccrawford wrote:
             | Yes, but side-loading, either directly or through third-
             | party stores, prompts the user with dire warnings, making
             | it almost impossible for developers to realistically use
             | that method.
             | 
             | The exceptions are hardware manufacturers that ship custom
             | versions of Android that have their own stores.
             | 
             | If it weren't for that detail, or that Google warned _all_
             | installs about the same thing (even from their own store),
             | I wouldn 't have a problem with it.
        
           | withinboredom wrote:
           | Just out of curiousness, does the Xbox have a shell like my
           | iPhone? Can I ssh from my Xbox? I can from my iPhone, for all
           | intents it seems like a personal computer (PC) and can do
           | anything my computer can do. My phone wasn't marketed as a
           | gaming console either. I'm not sure comparing an Xbox and a
           | phone is anywhere near the same thing. I could be wrong
           | though.
        
             | jsnell wrote:
             | The Xbox certainly has sufficient hardware and software
             | capabilities to run a shell or a ssh client; it is
             | basically PC hardware and a PC operating system, just
             | locked down. If it doesn't have a ssh client, it's only
             | because Microsoft didn't let the app onto the Xbox store.
             | If that's the line you draw, then the obvious thing for
             | Apple to do is to remove ssh clients from the store.
        
               | withinboredom wrote:
               | Heh, that'd actually be entertaining. After that it would
               | be image editing, then text editors, then, actually just
               | delete the utilities section from the App Store...
        
               | tehbeard wrote:
               | The previous gen had a developer mode which practically
               | let you run Windows apps... All for a one time fee of
               | $20?
               | 
               | Of course this was within their hypervisor and security
               | systems, so you were kept well away from the
               | games/dashboard/Xbox live.
               | 
               | But, homebrew and emulators could run pretty well on
               | there, an SSH client or vscode probably would just take a
               | small amount of porting.
        
               | nomel wrote:
               | Imagine how well the xbox would sell if there was a PC
               | "homework" mode, where you could just boot into windows.
               | I doubt Microsoft would do that to their PC making
               | brethren though.
        
               | meheleventyone wrote:
               | It has Edge on it so if you can do a browser version you
               | can do whatever. If you plug in a keyboard and mouse you
               | can gamedev on our platform for example.
        
             | kitsunesoba wrote:
             | The latest models of Xbox and PlayStation are basically
             | just Ryzen 3700X + Radeon 5700XT PCs, with the former
             | running a Windows variant and the latter running a FreeBSD
             | variant. They're pretty similar in stymied potential to iOS
             | devices.
        
           | amelius wrote:
           | > Is it really nuts though?
           | 
           | I don't know. But I do know it is nuts that we programmers
           | still support these extortionists.
        
           | schmorptron wrote:
           | Consoles are a super interesting comparison. In principle, I
           | agree that they should have to be open too. On the other
           | hand, consoles' hardware is nearly always subsidized by
           | expected future software royalties, while Apple makes a lot
           | of profit just by selling the hardware alone.
        
             | vhgyu75e6u wrote:
             | It would be interesting to see the reaction if consoles had
             | to be open to other store (my opinion is that they
             | shouldn't since their are not general purpose devices per
             | se). When the Epic Game Store appeared, the pc gaming
             | community was up in arms against it because it was a Steam
             | rival (sort of a tribal reaction) but were complaining
             | against the NVIDEA GPU monopoly
        
               | schmorptron wrote:
               | How would you feel about a, say 100EUR, fee to "unlock"
               | your PS5 and turn it into a general purpose device that
               | can run ubuntu?
               | 
               | And I think if you put your xbox into development mode
               | you can run your own code on it, like RetroArch although
               | I don't know to what extent that goes.
        
             | thegrimmest wrote:
             | But these are internal details that _shouldn 't matter at
             | all_ when deciding if a business practice is valid or not.
             | If I want to sell a toaster (regardless of whether it's
             | sold at loss or gain) that only toasts bread that I bake, I
             | should be perfectly entitled to do so. And if users flock
             | to my toaster due to its simplicity, predictability, and
             | ease of use, then the fact that other bakers are upset
             | about this shouldn't matter in _the least bit_.
             | 
             | Whether a toaster or console or smartphone is sold at a
             | loss or gain is an internal detail that isn't even public.
             | It's totally irrelevant.
        
               | linspace wrote:
               | A simple line of reasoning, like the Earth being flat.
               | Big companies love it because it's the perfect way of
               | avoiding competition, leveraging existing monopolies to
               | build new ones, locking customers, using assimetry of
               | information to hide true costs from them, etc... It has
               | plenty of regulation against it, although it is not truly
               | enforced thanks to deep pockets.
        
               | thegrimmest wrote:
               | It's a line of reasoning that follows the original
               | intended definition of liberty. Anything I should be free
               | to do in my basement and sell to my neighbours I should
               | be free to do at massive scale. There's no avoiding
               | competition. If someone out there innovates the next
               | generation of personal computing, they will eat Apple's
               | lunch, just like Apple ate RIM's.
        
               | clusterfish wrote:
               | That's just ideological propaganda that ignores the last
               | 200 years of economic theory and observations.
        
               | thegrimmest wrote:
               | It's ideological because this whole idea of forcing terms
               | onto Apple to open it's store is basically socializing
               | parts of Apple infrastructure and parts of its workforce.
               | To me this is totally unacceptable. Apple's innovation
               | has advanced the state of the art a great deal. This
               | company literally invented the concepts that we're now
               | seeking to rob it of. Why can't we just be grateful that
               | the free market was able to produce such a marvel, be
               | glad for the nice devices we all carry around, and leave
               | the org and its investors well enough alone?
               | 
               | Also which economic theory am I ignoring? Didn't Apple
               | itself enter the smartphone market by massively
               | disrupting the existing players and forcing the entire
               | industry to play catchup for over a decade? Didn't they
               | do this without any regulatory intervention to weaken the
               | market incumbents at the time? Why can't we expect that
               | the next smartphone-level innovation to personal
               | computing will come without similar intervention on our
               | parts?
        
               | 8note wrote:
               | Once it's in the hands of the user, they have the freedom
               | to make it work with whatever bread they want
        
               | thegrimmest wrote:
               | Well, sure, and you can _try_ to and some even succeed in
               | jailbreaking their iOS devices. That doesn 't mean that
               | Apple should be anything but hostile to such attempts.
        
               | schmorptron wrote:
               | We've reached the first point in recent history where
               | we're really seeing products with actively anti-user
               | features at scale. Coffe machines that only take
               | proprietary coffe pods, printers that have DRM on ink
               | cartriges, and more. These are all on a much smaller
               | scale than a computing device that we use for a
               | significant portion of our lives, both for management and
               | entertainment.
               | 
               | Another comparison would be a car that can only drive to
               | restaurants that agreed to give the car company 30% per
               | customer that arrives in one of their cars, and there
               | have to be fences around it to make sure you're not
               | walking to the restaurant next door by foot.
               | 
               | I'm not sure I agree with "I should be able to sell
               | anything with any anti-features I want" anymore to a
               | certain extent, since it does affect such a large part of
               | our lives, as general computing machines.
        
               | thegrimmest wrote:
               | Arrangements that subsidize a large purchase (printer,
               | paper towel dispenser, coffee maker, razor, smartphone,
               | tractor, etc.) by locking the purchaser into an
               | exclusivity agreement for consumables from the same
               | company (ink, paper towels, coffee pods, razor blades,
               | smartphone apps, tractor maintenance, etc.) are as old as
               | these have been feasible. This innovation tremendously
               | benefits both parties. I'm not sure why you'd dispense
               | with it really.
        
             | dustinmoris wrote:
             | > On the other hand, consoles' hardware is nearly always
             | subsidized by expected future software royalties
             | 
             | Legally that has no bearing on the matter though.
        
             | 30204604 wrote:
             | >Apple makes a lot of profit just by selling the hardware
             | alone.
             | 
             | Do you suppose that means Nintendo, which has sometimes
             | turned a profit on their consoles, should have an open
             | system? Interesting take, and I wonder what, in your mind,
             | the threshold is for "makes a lot of profit." I.e., if
             | Apple cut the price of their devices to make as much profit
             | as Nintendo, would they get a pass?
        
               | schmorptron wrote:
               | To be honest, I haven't thought about that much, and
               | don't have the mental capacity right now to really think
               | about the answer. It's a good point.
               | 
               | On the spot though I'd say that that would make Nintendo
               | the ones that should open up their system in my mind
               | though, provided they are making a sizeable (10%
               | including stuff like R&D over the span of a few years)
               | profit.
        
           | blinding-streak wrote:
           | I'm not sure that Google Korea blog post supports your
           | assertion. It says:
           | 
           | "97% of developers don't sell digital content and are not
           | subject to any service fee for having their apps displayed in
           | the Play Store or for any of the services listed"
           | 
           | And it mostly talks about fees going down.
        
         | RC_ITR wrote:
         | >Imagine if in the past Apple would have had to pay 30% of
         | their gross to Microsoft in order to be allowed to run their
         | software on Windows.
         | 
         | Sure, instead Best Buy would record a 22% gross margin for
         | selling the software on a CD [0] (I know it's not a perfect
         | example since Best Buy sells a lot of things, but Software was
         | 22% of sales in the linked period)
         | 
         | [0]https://s2.q4cdn.com/785564492/files/doc_financials/2006/bby
         | ...
        
           | 2OEH8eoCRo0 wrote:
           | If Apple lists an app on the app store and it does not sell,
           | how much money does Apple lose?
        
             | RC_ITR wrote:
             | As much as Best Buy did, since they required vendors to
             | reimburse them for markdowns and unsold investory.
             | 
             | We receive vendor allowances for various programs,
             | primarily volume incentives and reimbursements for specific
             | costs such as markdowns, margin protection, advertising and
             | sales incentives. Vendor allowances provided as a
             | reimbursement of specific, incremental and identifiable
             | costs incurred to promote a vendor's products are included
             | as an expense reduction when the cost is incurred. All
             | other vendor allowances, including vendor allowances
             | received in excess of our cost to promote a vendor's
             | product, are initially deferred and recorded as a reduction
             | of merchandise inventories.
        
               | 2OEH8eoCRo0 wrote:
               | Why does Best Buy require vendors to reimburse them for
               | markdowns and unsold inventory? Why doesn't Apple do the
               | same?
        
           | gamblor956 wrote:
           | So you're argument is that an online digital store justifies
           | a higher fee (30% vs 22%) even though it's significantly
           | _less expensive_ for Apple to run a digital store than it is
           | for Best Buy to operate physical retail stores?
           | 
           | If anything, that's just evidence that Apple is grossing
           | abusing its market position.
        
           | nappy wrote:
           | Right, but there are at least many competitors to Best Buy
           | all competing for your business, driving down margins.
           | Running physical stores is costly. If Apple allowed competing
           | digital stores, I would expect margins would be less than
           | 30%, and even less than 22%, and the value would end up in
           | consumer and developer's pockets.
        
             | tssva wrote:
             | Google allows competing stores but this isn't the case.
        
           | withinboredom wrote:
           | If Best Buy doesn't sell the software, they lose money,
           | because A. They already paid the developer for it. B. It
           | takes up space that could be used to sell something else. If
           | Best Buy wants to sell it at a discount, it doesn't affect
           | the developer, they were already paid by Best Buy.
           | 
           | With Apple, its the opposite. If Apple sells something at a
           | discount, the developer suffers (or Apple has to pay the
           | difference in some countries). If it doesn't sell, no one
           | gets any cash. Apple has no incentive to market something
           | and/or move inventory. Apple has only the incentive to market
           | things that you spend money on vs. Best Buy that has to take
           | a risk on something by spending money to buy it from the
           | publisher first.
        
             | RC_ITR wrote:
             | We receive vendor allowances for various programs,
             | primarily volume incentives and reimbursements for specific
             | costs such as markdowns, margin protection, advertising and
             | sales incentives. Vendor allowances provided as a
             | reimbursement of specific, incremental and identifiable
             | costs incurred to promote a vendor's products are included
             | as an expense reduction when the cost is incurred. All
             | other vendor allowances, including vendor allowances
             | received in excess of our cost to promote a vendor's
             | product, are initially deferred and recorded as a reduction
             | of merchandise inventories.
        
         | jurassic wrote:
         | By the same logic BestBuy, Verizon, and other hardware
         | retailers should get a cut of Apple's revenue.
        
           | Razengan wrote:
           | TYL that they do.
        
           | bdowling wrote:
           | > By the same logic BestBuy, Verizon, and other hardware
           | retailers should get a cut of Apple's revenue.
           | 
           | Best Buy, Verizon, and other hardware retailers buy Apple
           | products at a discount and sell them for retail price. So, in
           | a way they _do_ get a cut of the revenue that Apple would
           | make when Apple sells products at Apple 's retail stores.
        
             | wccrawford wrote:
             | When Develop X sells IAP for their app, Apple demands a
             | cut. Apple didn't ship that IAP or have anything to do with
             | it.
             | 
             | When Apple collects their cut from an app, they don't pass
             | any portion of that on to Best Buy, who sold that device.
             | 
             | Apple insists that Developer X wouldn't have made that
             | profit without Apple's support, and they're due that cut.
             | By that same logic, Best Buy is due a portion of that
             | because they enabled Apple to make that money in the first
             | place.
             | 
             | It's bonkers, which is why everyone's mind rejects that
             | Best Buy would be entitled to anything of the sort. But
             | Apple has managed to sell that line somehow.
        
           | selectodude wrote:
           | Wholesale pricing for brick and mortar is usually about 50
           | percent of MSRP.
        
         | somethoughts wrote:
         | I think Apple would actually have more of a case if they
         | charged different rates for different types of apps based on
         | technical reasons (i.e. Basics - web/touch/image/audio, video
         | media, gaming/ARKit):
         | 
         | 1.) web view/touch/audio streaming app - 10%
         | 
         | 2.) accelerated web view/SDvideo app - 15%
         | 
         | 3.) HDvideo H.264 app - 20%
         | 
         | 4.) 3D Graphics/ARKit SDK app - 30%
         | 
         | 3D and ARKit which are pushing the boundaries of the silicon
         | probably do have associated R&D costs as well as silicon COGS
         | costs that perhaps do need to be recouped in a manner similar
         | to gaming console SW licensing agreements (i.e. Xbox, PS,
         | Nintendo royalty payments).
         | 
         | In the court of public opinion it would also minimize the
         | effectiveness of "think of the solo iOS dev" type scenarios
         | that the big guys such as Epic, etc. like to hide behind.
        
           | Apocryphon wrote:
           | I wonder if that would run into net neutrality-type issues,
           | but setting different rates is definitely a novel way of
           | looking at things. Charging higher rates for publishers of
           | larger app binaries would also make sense. Certainly tech
           | giants such as Facebook and Uber who have bloated app sizes
           | could pay the extra expense for the hosting and so forth.
        
             | Gorbzel wrote:
             | > I wonder if that would run into net neutrality-type
             | issues
             | 
             | It absolutely would. Who is Apple or anyone on HN to tell
             | one developer that their app is more important/costly/uses
             | higher priority SDKs than another?
        
               | Apocryphon wrote:
               | Well, maybe app binary sizes are an objective metric.
               | Apple could even raise the existing cap and give Uber a
               | bit more room to breathe, while charging them for the
               | inevitable expansion of their app.
        
               | somethoughts wrote:
               | I think the analogy would be more equivalent to AWS.
               | There are different costs associated with using the
               | various SDKs (i.e. Lightsail, EC2, S3, SageMaker).
               | 
               | I'd also say the more it can be defined in terms of
               | technical reasons the better.
               | 
               | There are R&D costs to maintaining a cutting edge,
               | industry leading 3D Graphics SDK for iOS that the primary
               | users beneficiaries of said library (i.e. Epic, Xbox)
               | should contribute to.
               | 
               | This would require a bit of mindshift and context.
        
         | aspenmayer wrote:
         | The original app store on iOS was saurik's Cydia. App Store
         | wasn't even on iPhone 2G at launch.
         | 
         | Cydia is free and open source. Hopefully Jay can clarify the
         | commission for paid apps on Cydia, but something tells me it
         | isn't 27%.
        
         | scarface74 wrote:
         | Game developers do just that on Microsoft's consoles...
        
         | paulpan wrote:
         | I think Apple's stubbornness at keeping their commission ~30%
         | underscores how critical that percentage is to their bottom
         | line profitability - both present and future. "Services" is
         | foundational to Tim Cook's vision to continue to grow the
         | company and increase its revenue streams.
         | 
         | Based on latest Q4 earnings, Services is one of the highest
         | growth segment of Apple at 25% YoY (others being Mac at 25%,
         | Other Products at 13%). As the clamor for M1-based Macs
         | subsides, monetizing its existing 500M+ users is the only major
         | revenue-growth area. But what happens if their commission rate
         | is cut in half to 15%? Apple doesn't break out the specific App
         | Store revenue amount or percentage but it must be quite
         | significant.
         | 
         | Hence they're willing to risk these continued lawsuits and
         | regulatory backlash. The day that Services division no longer
         | reports 20%+ YoY growth could well be one when Apple stock
         | faces the reckoning like FB/Meta.
        
           | gilgoomesh wrote:
           | Please don't attack services in general. There's nothing
           | wrong with selling your _OWN_ services.
           | 
           | Apple TV+ and Apple Arcade are examples of good services
           | where Apple are commissioning and paying content producers.
           | The services are good value, good quality and have
           | competition on a level playing field (e.g. Netflix directly
           | compete against both and don't have to pay a commission to
           | Apple despite both their games and video services appearing
           | on the App Store).
           | 
           | Other services from Apple like cloud storage, Apple News and
           | Apple Music are more debatable value but they have
           | competition so if you don't like them, use something else.
           | 
           | The App Store is different because you don't have an
           | alternative. It is a parasitic system where where 70% of
           | revenue (not a guess, that's the real number) comes from loot
           | box grifting in games and there's literally no alternative to
           | Apple's 30% tax. It is a poison chalice from top to bottom.
           | 
           | It comes down to the monopoly.
        
           | polyomino wrote:
           | How long until they sell phones at a loss?
        
           | 908B64B197 wrote:
           | Ironically, this 30% and the pivot to "Service" is why iOS
           | devices get updates after 3 years while Android phones just
           | become paperweights.
           | 
           | Android OEM are incentivized to sell as many phones as they
           | can. They only make money on new hardware. Apple on the other
           | hand still makes money on older hardware as long as the user
           | still buy from the ecosystem. So it makes sense for them to
           | keep the products working longer.
        
             | rogerbinns wrote:
             | Apple's approach is even simpler from a technical point of
             | view. The oldest supported iPhone is the second generation
             | of 64 bit processor. There were almost certainly problems
             | with the first generation (of anything). The oldest
             | supported Watch was the first with (a now mature) 64 bit
             | processor. They made it mandatory for apps in the store to
             | be 64 bit.
             | 
             | Android meanwhile supports 32 and 64 bit, multiple
             | instruction sets, multiple (incompatible) SOCs etc. That is
             | a lot more challenging.
        
               | GeekyBear wrote:
               | >The oldest supported iPhone is the second generation of
               | 64 bit processor. There were almost certainly problems
               | with the first generation (of anything)
               | 
               | The iPhone with the oldest version of a 64 bit processor
               | (the A7 used in the 2013 iPhone 5s) fell out of support
               | after six years because it no longer had enough RAM for
               | the new version of the OS.
        
             | GeekyBear wrote:
             | >Ironically, this 30% and the pivot to "Service" is why iOS
             | devices get updates after 3 years while Android phones just
             | become paperweights.
             | 
             | Apple's support window advantage long predates their
             | services initiative.
             | 
             | Every flagship iPhone since the iPhone 4s in 2011 has
             | gotten at least five years of OS and security updates.
             | 
             | If you count years where you only get a security update,
             | but not an OS update the way the Android ecosystem does,
             | they have devices that have gotten eight years of support.
        
               | cmelbye wrote:
               | App Store has been a >$1B business for at least a decade.
        
               | GeekyBear wrote:
               | If it's just a question of revenue, Google can certainly
               | afford to update it's Pixel devices for more than three
               | years. Heck, they can afford to offer customer service
               | and technical support hotlines the way Apple does as
               | well.
               | 
               | However, the claim made was that Apple only started
               | offering a longer update period after they started
               | calling out service growth. This simply isn't true.
        
               | 908B64B197 wrote:
               | They can except... They don't control the SoC! Qualcomm
               | decides if a SoC gets to boot a newer Android or not. And
               | it's in Qualcomm's interest to sell more chips, since
               | they get no revenues post sales; only maintenance costs.
        
               | GeekyBear wrote:
               | That claim doesn't hold water. If people doing unpaid
               | community support can produce custom ROMs for older
               | devices that are no longer supported, Google can support
               | older devices too.
               | 
               | Not to mention the ability of any company to make demands
               | of their suppliers. If Google can demand device makers
               | not use a fork of Android, they can demand suppliers
               | offer support for their products.
               | 
               | Google simply doesn't care, because the customers they
               | care about are the advertisers, not device purchasers.
        
             | flerchin wrote:
             | Google figured out the game better than that. After a few
             | years there's no ongoing costs for those devices, but they
             | still take their vig if users continue to use them.
        
             | paulpan wrote:
             | Great point. Apple is lauded for their 5-6 year of iOS
             | updates but it's not an altruistic move - the updates
             | enable users to keep using their apps/services.
             | 
             | Also there's an upper-bound on price for an iPhone Apple is
             | able to charge and if I can speculate, the "Pro" lineup
             | does not outsell the "base" iPhone significantly. For one,
             | there isn't enough product differentiation for an average
             | consumer to pay the $300/40% price premium.
             | 
             | So in the world of 3-4 year iPhone cycles, keeping up the
             | walled garden and monetizing those within is the surest
             | path to revenue growth.
        
               | geodel wrote:
               | > but it's not an altruistic move - the updates enable
               | users to keep using their apps/services.
               | 
               | What is altruistic in this world? Government welfare?
               | parental love? I don't know of anything that is truly
               | altruistic.
        
           | Joeri wrote:
           | So Apple has around one billion customers. When you look at
           | global income distributions there are not that many more
           | people that actually have enough income to afford their
           | products. Practically speaking while they may grow their
           | customer base a bit further, they cannot double it without
           | making far cheaper products or the world's population
           | becoming a lot more equally distributed income-wise.
           | 
           | The consequence of this is that they have to lean into
           | inequality: get their existing high income customers to pay
           | them more money. This is why services are such a good
           | strategy and they are so unwilling to give up on that
           | revenue, and it is also why they are planning to launch very
           | expensive (and therefore high profit) new product categories
           | like vr goggles and cars targeted at their existing customer
           | base.
           | 
           | Apple is so ridiculously big that it is fun to map them back
           | onto the world economy. Their yearly revenue is 0.4% of the
           | world economy. Their market cap is 0.6% of global wealth. But
           | that does present a real challenge to Tim Cook to keep
           | growing. If apple doubles again they will be 1% of the world
           | economy. Does that make sense for what amounts to a luxury
           | brand?
        
             | nicoburns wrote:
             | > The consequence of this is that they have to lean into
             | inequality
             | 
             | They don't _have_ to do this at all. They _could_ decide
             | that they have 1 billion customers which is plenty and
             | stick with that.
        
             | Apocryphon wrote:
             | And the problem for them is as they shed the luxury brand
             | and become mass market general computing... the antitrust
             | regulations will just keep accumulating, increasing the
             | pressure. A vicious cycle.
        
           | TheCoelacanth wrote:
           | Maybe they should provide some actual services instead of
           | just trying to collect a 30% tax on everything that happens
           | on a iPhone.
        
           | Apocryphon wrote:
           | > The day that Services division no longer reports 20%+ YoY
           | growth could well be one when Apple stock faces the reckoning
           | like FB/Meta.
           | 
           | Is that what happens to a piece of software after it has
           | eaten the world?
        
             | galangalalgol wrote:
             | Yes, ironically, a piece of software that becomes used by
             | everybody, or at least everyone it ever might be used by,
             | becomes worthless in the eyes of investors, because merely
             | tracking with population growth would be seen as a sign of
             | a dying business. This leads to self destructive behaviors
             | as the product tries to monetize itself in unpleasant ways
             | and expand into non-core competencies. Dropbox is an often
             | sited example.
        
               | Apocryphon wrote:
               | The evolution of a tech company into a utilities company.
        
               | infogulch wrote:
               | What if you planned a complete software product lifecycle
               | and create a pool of talented teams / organizational
               | modes that can adopt stewardship of the software at
               | various life stages with the goal to smoothly transition
               | between stages without harming users or workers?
               | 
               | Lets say it looks like this for the sake of argument:
               | stage - organizational mode - goals
               | Idea / Proof of Concept - individual or team - prove the
               | idea out         Growth Software Product - startup -
               | carve a space for the product, grow its useful user base
               | to a target number, transition to Utility         Utility
               | Software Product - utility - maintain the project and
               | optimize costs and delivered value, transition back up to
               | Growth or down to Archived         Archived Software
               | Product - library / anthropology - tell the story of the
               | project, minimize costs, make it available to a wide
               | audience, organize its community, transition back up to
               | Utility
               | 
               | The idea is to have a pool of teams and organization
               | templates where you aim to "pass the baton" between modes
               | depending on the lifecycle stage of the software, and
               | individual teams and orgs are rewarded based on how they
               | meet their objectives including delivering a seamless
               | transition to the next stage.
        
               | Apocryphon wrote:
               | That's very well thought out. Sadly feels overly
               | aspirational when just "keeping the lights on" is often
               | underrated and neglected in many companies. Maybe
               | eventually a good business will have the foresight to
               | think of their organization in terms of different
               | lifecycle stages.
        
               | infogulch wrote:
               | Thanks. I agree that today's profit-oriented
               | organizations are generally unsuited to act out this kind
               | of product-centric methodology. Maybe future nonprofits
               | or DAOs or something could pull it off.
        
               | colejohnson66 wrote:
               | What about Facebook. They have over 2 _billion_ accounts
               | supposedly and Wall Street still invests in them
               | (ignoring this past week).
        
               | disillusioned wrote:
               | > (ignoring this past week)
               | 
               | How can you ignore this past week when this past week is
               | _directly related_ to their account growth falling off a
               | cliff because of the exact over-saturation of the market
               | we're discussing here?
        
               | rhizome wrote:
               | > _merely tracking with population growth would be seen
               | as a sign of a dying business_
               | 
               | If this isn't a perversion within capitalism I don't know
               | what is. Heck, a market failure of capitalism itself.
               | 
               | "There's nothing worse than making something everybody
               | uses."
        
             | mminer237 wrote:
             | Yes, they're not valued on making $10 billion per year.
             | That P/E means it would take 24 years to make your money
             | back. They're valued so highly because they're growing and
             | it's expected that in ten years, it'll $30 billion per
             | year, cutting your return time. If growth ends, then this
             | overvaluation corrects itself.
        
               | jbay808 wrote:
               | 24 years to earn your money back works out to a 2.9%
               | annual rate of return, which is a little bit above both
               | the 20 and 30 year treasury yields (~2.23%), reflecting a
               | small but positive risk premium for a big blue-chip
               | company that is generally seen as a low-risk investment.
               | 
               | This looks like another example of how low interest rates
               | cause stock valuations to run up until their long-term
               | yields end up only slightly higher than bond yields.
               | Investors expecting that rapid growth to continue might
               | be disappointed.
        
               | Apocryphon wrote:
               | Zero-Interest rate policy explains the world
               | 
               | https://www.readmargins.com/p/zirp-explains-the-world
        
           | gogopuppygogo wrote:
           | I honestly prefer to use Apple payments and Apple "Hide My
           | Email" as I'm sure a non-trivial number of users do. If they
           | could just refocus on making developers prioritize that flow
           | for users over outside payment systems (e.g. create a flow
           | requiring users to agree to disclose their private
           | information to the app maker and third parties in order to
           | use an outside payment system) then they'd keep most of their
           | customers in the Apple ecosystem and keep the payment
           | processing.
           | 
           | The fact they are trying to keep a stranglehold on this
           | revenue seems penny wise and dollar foolish. Clearly
           | regulators are gunning for them and it's not long before they
           | lose this and don't get to set the standard.
        
             | Dylan16807 wrote:
             | > I honestly prefer to use Apple payments and Apple "Hide
             | My Email" as I'm sure a non-trivial number of users do. If
             | they could just refocus on making developers prioritize
             | that flow for users over outside payment systems (e.g.
             | create a flow requiring users to agree to disclose their
             | private information to the app maker and third parties in
             | order to use an outside payment system) then they'd keep
             | most of their customers in the Apple ecosystem and keep the
             | payment processing.
             | 
             | It's pretty good stuff.
             | 
             | But they seem to be admitting that the payment processing
             | is only worth a 3% cut. And you wouldn't charge apps for
             | the email hiding.
        
               | wayoutthere wrote:
               | They're charging the apps for distribution, which is a
               | lot of infrastructure and a lot of human-driven process
               | that doesn't come for free. There are good platform
               | reasons for not allowing alternate distribution methods.
               | 
               | There are no wholesale prices for digital goods so they
               | get tacked on as fees. All Apple is really doing is
               | asking developers to give their customers an all-in price
               | that they'll display. You as a developer are free to
               | raise your prices 30% on iOS, and many in fact do.
               | 
               | Every segment of every market does not need to be
               | relentlessly competitive. Apple's App Store rules are
               | obvious, and if you don't like them, you're free not to
               | develop for their platform (which itself is the product
               | they sell to their consumers; not your app and of which
               | the iPhone is only one component).
               | 
               | You are not entitled to be profitable any way you want;
               | you have to find a niche in the market that's profitable
               | and if you can't make money on iOS, the market solution
               | is to just do something else. Countries -- especially
               | relatively small ones -- that try to legislate around
               | this are just as likely to be seen as more trouble for
               | Apple than they're worth to have an official presence in.
        
             | AniseAbyss wrote:
             | If Apple had confidence in the superiority of their service
             | they would not be afraid of someone undercutting them.
        
         | [deleted]
        
         | softwarebeware wrote:
         | I think 30% is only unreasonable if apps in their ecosystem
         | start to leave. Honestly, when the marketplace votes by staying
         | on the platform at 30%, then it doesn't matter how ridiculous
         | it seems to some of us, they're going to keep doing it.
        
           | threeseed wrote:
           | It's 15% for developers making up to $1m a year.
           | 
           | That's pretty reasonable compared to other distribution
           | channels.
        
           | fxtentacle wrote:
           | There's no place to leave to.
           | 
           | Or if you mean developers abandoning support for iOS and Mac,
           | then yes, that is precisely what we did.
        
             | Razengan wrote:
             | How many of your users left you?
        
         | short_sells_poo wrote:
         | They are doing everything they think they can get away with. I
         | agree that ethics and morale should factor into corporate
         | decision making, but at this level I'd argue that corporate
         | decision making is purely an optimization game between profits
         | over various horizons.
         | 
         | If they think this maximizes their payoff, they'll do it. I'm
         | 100% certain that they realize that this may/will invite
         | further lawsuits and have factored this into their
         | calculations.
        
           | thathndude wrote:
           | Precisely. Let them reap what they plant.
        
             | withinboredom wrote:
             | Apples?
        
           | Hokusai wrote:
           | Or not. Short term bonuses are key, achieving quarter goals
           | is extremely important, that the company crashes and burns in
           | 10 years may be someone else problem.
           | 
           | Big corporations are giants with clay feet. From inside one
           | can see the real humans behind the curtains.
           | 
           | So, you could be right and its a long term strategy, but it's
           | also possible that they are just thinking about their next
           | bonus.
        
         | echelon wrote:
         | > Imagine if in the past Apple would have had to pay 30% of
         | their gross to Microsoft in order to be allowed to run their
         | software on Windows.
         | 
         | iPod wouldn't have happened and Apple wouldn't exist today.
         | Apple relied on the fact that most of its customers used
         | Windows and that they got to transact for free on the platform.
         | Heck, they didn't even need Microsoft's approval to offer
         | iTunes downloads.
         | 
         | Think about all of the small businesses and startups that are
         | getting snuffed out today by Apple's aggressive over-
         | harvesting.
         | 
         | Some non-trivial percentage of Apple's $3T market cap owes
         | itself to a system of feudalism and mafia-style tactics rather
         | than innovation and product sales. Imagine of those dollars
         | were instead represented just about anywhere else.
        
         | blihp wrote:
         | When they eventually lose a major lawsuit, any 'record setting'
         | settlement or judgement is likely to be a tiny fraction of the
         | profits they were able to reap in over a decade of bad
         | behavior. Name a single multinational company in the last 20
         | years where the consequences were more than a fraction of the
         | profit they made from their bad behavior.
        
         | [deleted]
        
         | ROTMetro wrote:
         | You just made Apple's point though. The Microsoft ecosystem of
         | flexibility introduced so much variation that lots of people
         | moved to Apple BECAUSE of it's enforced uniformity. Microsoft's
         | ecosystem of flexibility allowed their system to be abused and
         | exploited by bad actors more easily resulting in people MOVING
         | to Apple to get away from this. If you want flexibility,
         | develop for Android or Windows. You don't have a right to have
         | access to people who moved to Apple for the express purpose of
         | living in a managed ecosystem that just worked and simplified
         | their lives. Everyone is talking about the developer's rights
         | but no one is talking about end users, many of whom choose
         | Apple for the very reason this is trying to negate, even if
         | they couldn't articulate it as such.
        
           | [deleted]
        
           | spideymans wrote:
           | You're not wrong, it what does this have to do with App Store
           | commissions? I (an end user) would be quite happy to see iOS
           | remain a restricted environment for developers, while also
           | lowering App Store commissions, such that more business
           | models will be competitive on iOS.
        
           | passivate wrote:
           | There is absolutely nothing is preventing Apple from creating
           | an easy to use 'checkout' process that pretty much every
           | single e-commerce websites have. Developers can choose to
           | integrate with Apple payments, pay pal, square or whoever.
           | Its no different than Amazon. Users can check a payment
           | processor as a default and never be bothered. In my opinion,
           | this is simply Apple being a bully, for commercial reasons,
           | not technical, or UX ones.
        
           | Hokusai wrote:
           | > many of whom choose Apple for the very reason this is
           | trying to negate
           | 
           | I already use apps in iOs that bypass the store to transfer
           | money, pay for train tickets, parking, etc. Many people in
           | Sweden likes Swish and probably will be ok with being able to
           | choose it for all their transactions.
           | 
           | I could be wrong, but I don't think that there is data to
           | support the opposite either.
        
           | oaiey wrote:
           | The industry could build platforms which are both safe and
           | flexible. They just do not want it. Some for keeping their
           | revenue other for sticking to backward compatibility
        
         | anm89 wrote:
         | They have armies of economists, lawyers, and accountants. Do
         | you really think that they are naive and you simply understand
         | the situation better than them or do you think it's possible
         | that they've run the numbers?
        
         | readams wrote:
         | They have provided a convenient breakdown for their invoices:
         | 
         | 3% payment processing
         | 
         | 27% monopoly rent
        
           | threeseed wrote:
           | For developers making up to $1m a year:
           | 
           | 3% payment processing
           | 
           | 12% cost of channel
        
           | sfe22 wrote:
           | Other payments processors charge 30c + 3%, so it would be
           | interesting to see how it would work here for smaller
           | payments
        
             | IncRnd wrote:
             | It's pretty straightforward, assuming that you have the
             | standard charge amount correct. (I don't know)
             | 
             | Between the two approaches, the costs break even when 30c =
             | .27*cost.
             | 
             | Apple's 27% exceeds the 30c whenver the purchase costs less
             | than $1.11. 27% of .99 is 26.73c.
             | 
             | So, this is a strong case Apple has calculated the other
             | processor's charges for all app sales of .99 or less. It
             | seems they are trying to charge more than normal processors
             | for all micro-transactions.
        
             | Dylan16807 wrote:
             | 5c + 5% is also standard for smaller payments.
        
         | Razengan wrote:
         | > _Apple should focus on selling hardware and be happy to
         | facilitate those payments that people - and application
         | developers - voluntarily process through their system._
         | 
         | Why don't you apply that to the Xbox, PlayStation, etc.?
         | 
         | > _All this stupid taxation of other peoples ' businesses_
         | 
         | Exactly. Stop trying to overthrow Apple from the ecosystem they
         | built.
        
       | keleftheriou wrote:
       | Steve Troughton-Smith on Twitter[1]:
       | 
       | > Absolutely vile. This says everything about @tim_cook's Apple
       | and what it thinks of developers. I hope the company gets exactly
       | what it deserves. Everybody on their executive team should be
       | ashamed, and some of them should not be here when it's all over.
       | We all see you.
       | 
       | > We've been told that if Apple ever asked its employees to
       | betray their principles, they'd leave. In a similar vein,
       | everybody, top to bottom, involved in planning, editing,
       | implementation of everything in this document should leave Apple.
       | You betrayed us.
       | 
       | 1:
       | https://twitter.com/stroughtonsmith/status/14895589519056691...
        
         | viktorcode wrote:
         | Pretty strong word, betrayal.
         | 
         | Someone on 9to5 Mac suggested Steve to put his money where his
         | mouth is, i.e. pull his own software from App Store, before
         | demanding from Apple employees that they leave the company. I
         | think that's a good advice.
        
           | irskep wrote:
           | So he should destroy his business? Seems like extremely
           | terrible advice.
        
         | dagmx wrote:
         | Their second tweet doesn't make sense. How does his feeling of
         | betrayal mean that the employees betrayed their principles and
         | should therefore leave?
         | 
         | That's a projection of his own belief in the way it should work
         | onto the beliefs of thousands of employees who may not share
         | his thoughts on the matter.
        
       | traveler01 wrote:
       | I got an iPhone in August. Their I've never seen such a crappy
       | and expensive AppStore before and I'm a longtime Android user.
       | 
       | And this won't improve it, apps are very expensive for they do,
       | phone is pretty much a closed up black box which apparently is
       | easily hackable if you manage to find the security holes.
        
         | viktorcode wrote:
         | Good thing iPhone holds resale value for longer than an Android
         | phone, so you can just ditch it.
        
         | philliphaydon wrote:
         | I don't see any difference in prices between android and iOS.
         | They are both expensive. But the quality of apps on android is
         | definitely lower.
        
       | Hamuko wrote:
       | I hope that the Dutch demand a breakdown on that commission to
       | see where it goes, if it's not just a number that they pulled out
       | of their ass.
       | 
       | Surely they wouldn't put hosting and approval processes there if
       | free apps don't pay separately for those?
        
         | jacquesm wrote:
         | It will be smacked down hard is my prediction, because clearly
         | Apple is trying to argue that they have an innate right to
         | other parties' business income. It's the Mafia model: you have
         | a partner in the business who wants a sizeable chunk of your
         | gross without doing anything for it.
        
           | tomjen3 wrote:
           | Of course they don't, those businesses are free to develop
           | their own phones and not pay Apple at all.
           | 
           | Now maybe 15 percent is a more reasonable price, but Apple
           | developed the phone, apple developed the SDK, apple made it
           | available to everybody, heck Apple even developed the
           | computer language used.
           | 
           | This is all available for anybody for a fixed percentage,
           | which means that it scales pretty well with how much you make
           | and it cost you nothing more than 100 dollars a year if you
           | don't charge people.
        
             | Spivak wrote:
             | This comment section is rich coming from a group that does
             | thing like massively charge more for "enterprise plans"
             | that are are basically nothing except SSO. You charge based
             | on how much the person on the other side wants your stuff,
             | not how much it costs to provide it. And businesses moving
             | a lot of product on iOS definitely want it more.
        
           | myspy wrote:
           | But when you use the store, you need to pay for using and
           | maintaining the store, which is the other 27%. Why would you
           | expect to upload apps in the store and let them be downloaded
           | for free?
        
             | 7steps2much wrote:
             | You need to pay 99$/Year for a developer account though.
             | That's very much not "for free"
             | 
             | I would argue that 99.9% of apps on the app store ever get
             | to the point where 99$ a year is even remotely the cost
             | incurred by Apple.
        
               | Spivak wrote:
               | This makes no sense, say apple drops the $99 developer
               | fee. The 30% commission is suddenly justified?
        
             | sofixa wrote:
             | You pay for it via the developer account. Isn't that what
             | it is for?
        
             | Hamuko wrote:
             | No developer can upload anything to the App Store for free.
             | You need to pay $99/year for access.
        
             | jacquesm wrote:
             | Because that is the model that Apple has chosen for. If the
             | downloads can be priced or can be free that is Apple's
             | choice. Then they should raise the minimum price for
             | distribution.
             | 
             | Distribution is a one-time expense, and it does not entitle
             | you to a 30% cut of services that use Apps as endpoints.
             | It's a mob move, taxation because you are powerful enough
             | to harm another business, not because you have contributed
             | to the business.
        
               | maccard wrote:
               | > Distribution is a one-time expense
               | 
               | No, it's not. Distribution requires ongoing storage and
               | bandwidth costs.
               | 
               | > It's a mob move, taxation because you are powerful
               | enough to harm another business, not because you have
               | contributed to the business.
               | 
               | This is just flaming. Apple absolutely have contributed
               | to the business. They provide hosting, storage,
               | versioning, a marketplace, storefront reviews, developer
               | tools, various high-availability services (auth being one
               | of them). We can argue all day how much that is worth,
               | but it is definitely worth some number greater than 0,
               | otherwise people would just ignore the platforms.
        
               | jacquesm wrote:
               | Explain please how distribution is tied in to the unknown
               | price point at which the other company proceeds to do
               | business?
               | 
               | Or are you arguing that the 30% cut is used to subsidize
               | the remainder of the free apps?
               | 
               | You really should bone up on anti-competitive behavior
               | before accusing people of flaming.
               | 
               | People are forced into this model, the alternatives have
               | been degraded to the point that they no longer function
               | for all intents and purposes you _have_ to distribute
               | your app through Apple.
        
               | maccard wrote:
               | This is a much more reasonable comment than your original
               | coment.
               | 
               | > Explain please how distribution is tied in to the
               | unknown price point at which the other company proceeds
               | to do business?
               | 
               | This is not what you said, you said it was a one time
               | expense. Those two statements are not the same.
               | 
               | > Or are you arguing that the 30% cut is used to
               | subsidize the remainder of the free apps?
               | 
               | You're putting words in my mouth here. I'm not arguing
               | the 30% cut is used to subsidise the remainder of the
               | apps, I'm arguing that free apps still have distribution
               | costs.
               | 
               | > You really should bone up on anti-competitive behavior
               | before accusing people of flaming.
               | 
               | I stand by my accusation of flaming - just becasue you
               | have a point doesn't mean it couldn't be made in a better
               | way.
               | 
               | > People are forced into this model, the alternatives
               | have been degraded to the point that they no longer
               | function for all intents and purposes you have to
               | distribute your app through Apple.
               | 
               | That I don't disagree with one bit, and if your initial
               | comment had said that rather than " It's a mob move,
               | taxation because you are powerful enough to harm another
               | business, not because you have contributed to the
               | business." I wouldn't have commented on it.
        
         | viktorcode wrote:
         | You expect there should be no profit, and the whole commission
         | therefore must cover some costs? That was the line of argument
         | of Epic in court; it didn't go well.
        
       | xuki wrote:
       | Apple ran out of people to sell iPhone to and they're turning
       | into a service company to keep the stock price flowing. Infinity
       | growth is cancer.
        
         | viktorcode wrote:
         | Last quarter results say they didn't.
        
         | disgruntledphd2 wrote:
         | See also them exempting themselves from the cross-app tracking
         | thing.
         | 
         | Personally, I predict that they'll need to either give up on
         | service revenue growth, or roll back on these changes.
         | 
         | This will occur as the next big f2p games will find it much,
         | much harder to monetise profitably without being able to
         | measure/optimise at a user level.
         | 
         | It'll be interesting to see what happens here.
        
           | ksec wrote:
           | >Personally, I predict that they'll need to either give up on
           | service revenue growth, or roll back on these changes.
           | 
           | There is no need to give up on service revenue. Before 2016,
           | my expectation of future Apple Services was growth from
           | AppleCare and iCloud. Today, Apple put $10 per devices to
           | services revenue for OS, Map and other Software. Apple could
           | hike the price and move those to services. For example iPhone
           | price hike but with 2 years AppleCare by default.
           | 
           | Nearly 80% of App Store revenue are from Gaming. There is no
           | reason why Apple cant separate Game into a different Store
           | and continue to charge 30% off it. That would have protected
           | 80% of App Store revenue alone. EPIC wouldn't be happy, but I
           | am sure most people couldn't care less. Gaming are not the
           | fabric of our modern society ( I am sure there will be people
           | who disagree ).
           | 
           | Then it is the Apps and Services. Which is not only just a
           | revenue problem but a power play problem. Why does Apple get
           | to dictate which business it is allowed on their platform
           | when it holds 60%+ of usage in US / UK market. I have an app
           | for my restaurant, but Apple refuse to host it. While QSR
           | next door get to use Apps and customer are flying in. Under
           | which law does Apple gets to discriminate small business? May
           | be that is fine by US standards, I can assure you this wont
           | fly in EUR. And where are business and developers going to
           | complain? And how is Apple responding? If you watch every
           | speech, interview or answer Tim Cook gave, it is obvious he (
           | representing Apple ) doesn't think they have a problem at
           | all. And the biggest problem in the world is not
           | understanding there is a problem.
           | 
           | It is sad those who were on Steve Jobs side are all gone.
           | Phil Schiller, Katie Cotton, Jony Ive, Scott Forstall, Bob
           | Mansfield, Ron Johnson. And only Tim Cook and Eddy Cue left.
           | There may be not of people with high intellect at Apple, but
           | very little with intuition.
           | 
           | "Intuition is a very powerful thing, more powerful than
           | intellect, in my opinion," - Steve Jobs
        
             | Apocryphon wrote:
             | You're forgetting Craig Federighi!
             | 
             | One wonders if he's in line for succession after Cook. And
             | how he'd do in the captain's seat.
        
             | disgruntledphd2 wrote:
             | > Nearly 80% of App Store revenue are from Gaming. There is
             | no reason why Apple cant separate Game into a different
             | Store and continue to charge 30% off it. That would have
             | protected 80% of App Store revenue alone. EPIC wouldn't be
             | happy, but I am sure most people couldn't care less. Gaming
             | are not the fabric of our modern society ( I am sure there
             | will be people who disagree ).
             | 
             | Yes, exactly. And how do those games monetise?
             | 
             | They target a small number of people who spend absurd
             | amounts of money on in-game purchases. FB (and Google, but
             | that's not relevant on iOS) have tools that allow a
             | marketer to optimise towards this event. If you can't
             | measure which people actually purchased, it gets much more
             | expensive to spend loads of money acquiring users on iOS
             | (relative to Android).
             | 
             | Therefore, while Apple are fine now, I suspect that they'll
             | see far less growth from in-app purchases from games in the
             | future, which will hold back their services revenue.
             | 
             | Hence my comment, they'll either roll this back or give up
             | on service revenue growth.
             | 
             | It doesn't really matter to me (no longer in the industry)
             | but it'll be interesting to see what they choose.
        
               | ksec wrote:
               | Yes, I know Mobile Gaming is the reason why Internet ad
               | revenue are up, it is pretty much a whole cycle where IAP
               | gets money and these company use percentage of them for
               | advertising, the cycle repeat until a point it dies and
               | they will make another game using other IP.
               | 
               | But do less effective ads necessary means less spending
               | on Games? I am going to assume there will be other form
               | of discovery. The whales will just go somewhere else and
               | spend it. Or am I missing a link here somewhere?
               | 
               | I do see you point of how service revenue and the game
               | and ads are tied together. Probably need sometime to sit
               | down and think deeply about it.
        
         | dandanua wrote:
         | > Infinity growth is cancer
         | 
         | But every shareholder of any corporation wants exactly that.
         | Moreover, Tesla proves this can be achieved largely on promises
         | (look at the capitalization/revenue).
        
       | Jyaif wrote:
       | > Each month, developers will have to send a report to Apple that
       | lists their sales. Apple will then send out invoices for its
       | commission, that must be paid within 45 days.
       | 
       | LOL!
       | 
       | Apple has no way of knowing how many sales actually occurred in
       | the app, so they have to trust the developers to report the
       | correct number. How the tables have turned :-)
        
         | dsnr wrote:
         | They though about that too, they will provide an API, that the
         | developer has to call before redirecting the user to the
         | external payment provider. So they can approximate the amount
         | of sales the app generates. It's in the article.
        
           | 7steps2much wrote:
           | Would be too bad if the developer just doesn't do that right?
        
             | haar wrote:
             | Apple review your apps before approving them onto the App
             | Store.
             | 
             | You can opt to not follow their rules, and they can opt to
             | not approve your app.
        
             | denni9th wrote:
             | Unfortunately code that did that would probably not pass
             | the App Store review process.
        
           | post_break wrote:
           | My app has a 90% bounce rate Apple, sorry!
        
             | rosndo wrote:
             | Fraud is a crime you can go to prison for.
        
         | bryanrasmussen wrote:
         | Probably apps with low numbers of sales will be punished in
         | rankings, with low numbers of sales it means your users don't
         | really like you.
        
           | grenoire wrote:
           | Does that mean I can buy my app into the rankings by paying
           | more in commission?
        
             | bryanrasmussen wrote:
             | I mean maybe I am being cynical here, but it was implied
             | that developers could just under-report their sales without
             | negative effects, in order to fight that possibility I
             | might suppose that Apple would increase positioning of apps
             | in the Netherlands that reported high sales, under theory
             | that they were 'better'.
        
         | grenoire wrote:
         | Apple is basically a local tax authority now. For the... Apple
         | tax, y'know?
        
           | brimble wrote:
           | As a user, a huge part of their value proposition is that
           | they act as a private regulator, to good effect.
           | 
           | It's the libertarian dream of paying companies to be your
           | private regulatory enforcement agency (see Friedman and
           | others).
           | 
           | Then they tax companies for access to their little haven of
           | sanity.
           | 
           | I'd prefer the government just regulate out all the plainly-
           | bad behavior that goes on in the software industry, but
           | lacking that... I prefer to retain this option.
           | 
           | I wish their cut were lower but that they levy a "tax" makes
           | a certain amount of sense, given the circumstances.
        
           | lnxg33k1 wrote:
           | s/local/global
        
           | Longhanks wrote:
           | Except you can always opt to not use, develop for or deploy
           | onto Apple devices. Just use Android if you're uncomfortable.
        
             | lnxg33k1 wrote:
             | Do you think that your approach to life would have made a
             | better world than it is now? If we said like "Don't worry
             | about companies throwing shit into the rivers, just buy
             | bottled water", or "Don't worry about workers rights just
             | find a better job", "Don't worry about purchases, just buy
             | from a different company", like we need to make sure that
             | the system can thrive, that small businesses can develop
             | without being blood sucked, we are all at stake of making
             | sure that the system as a whole can grow and not only the
             | fruit company and its stakeholder, so no we don't have a
             | choice of ignoring fruity shit, we need to make sure that
             | what they can do is regulated to let every one work and
             | fairly earn, I am fairly annoyed by this libertarian brain
             | damage trying to make everyone reading more stupid, you
             | want to let apple get away, then do that use apple and set
             | up a direct debit so that they can keep exploiting you, for
             | the rest of us with opposable thumb, we're going to try to
             | make sure that regulators regulate
        
             | sunderw wrote:
             | And if I'm uncomfortable with Android, what should I use ?
             | I have the choice between being abused by Apple, Google or
             | having no apps because no one bothers developping apps for
             | Linux phones.
        
       | hexo wrote:
       | Extortion practices.
        
       | mensetmanusman wrote:
       | It would benefit Apple if they had to compete with other payment
       | processors. Competition sharpens the product.
        
       | Traster wrote:
       | This is great, because it serves as a basis for what Apple can be
       | forced to reduce their commission to. What Apple has said here is
       | "The cost of the payment processing is 3% and the rest is our
       | commission", which obviously opens the door to legislators then
       | saying "Well, you said the costs of payment processing is 3%,
       | that's what we'll cap your commission at".
        
         | kmlx wrote:
         | this makes absolutely no sense.
         | 
         | apple never said 30% is just payment processing. they claim the
         | infra, the testers, the approval etc etc costs a lot. so now we
         | know it's 27%. which is absolutely normal.
         | 
         | should any app use their proprietary apis, without their
         | explicit approval? of course not. the phone might be yours, but
         | the code running on it a hard no.
         | 
         | but at the end of the day it's all politics so i normally
         | assume the worst: a worse overall end-user experience because
         | some companies spent more on lobbying than others.
        
           | huhtenberg wrote:
           | > now we know it's 27%
           | 
           | Bah, we most certainly don't.
           | 
           | They pulled that number completely out of their ass, just
           | like the previous 30%. The only rationale behind it is
           | because they could get away with it.
        
             | musicale wrote:
             | > They pulled that number completely out of their ass, just
             | like the previous 30%.
             | 
             | As recently as 2019, 30% was pretty common:
             | 
             | https://www.ign.com/articles/2019/10/07/report-
             | steams-30-cut...
        
           | 8note wrote:
           | the testers and approval costs are per app though, not per
           | transaction. the infrastructure is per download.
           | 
           | what cost does apple incur per iap on somebody else's
           | payments service?
        
             | musicale wrote:
             | Clearly the incremental platform fees of Apple, Nintendo,
             | Sony, etc.) amortize both capital and operational expenses,
             | and also enable those companies to make tons of money.
             | 
             | The assumption that Apple only has to pay for
             | infrastructure when people are downloading things is
             | incorrect. Data centers still incur ongoing operations and
             | maintenance costs even if they're fully paid for and
             | nobody's downloading anything.
        
         | olliej wrote:
         | Yes, it shows that payment processing is 3%, and the remaining
         | 27% has _nothing do to with payment processing_
         | 
         | Why do people insist on acting like the platform commission is
         | a payment processing fee? No one says that about the platform
         | commissions by Xbox, Playstation, Twitch, Patreon, ...
        
         | endisneigh wrote:
         | Should all businesses be capping their fees to their costs?
         | 
         | If so, then that implies no profit. If no profit, why bother?
        
           | moonchrome wrote:
           | Because it enables/sells the rest of their ecosystem and
           | right now they are in a position where they are just rent
           | seeking on their market position.
        
             | gruez wrote:
             | >they are just rent seeking on their market position.
             | 
             | No, they're providing a service and charging for it, just
             | like anyone else.
        
               | TheCoelacanth wrote:
               | What "service" are they providing? Not stopping you from
               | using someone else's payment processor?
        
           | PeterisP wrote:
           | The big question here is why should Apple be entitled to any
           | fee whatsoever if a user wants to buy something from a vendor
           | without using Apple's payment infrastructure? Users should be
           | free to transact directly with vendors without involving
           | Apple if they don't want to involve Apple (which the court
           | case approved) and if they aren't involving Apple, as in this
           | case, a demand for a "commission" on non-Apple transactions
           | is anticompetitive and should be prohibited by law.
        
             | lolinder wrote:
             | The fight over alternative payment methods is fraught with
             | misunderstandings. Apple has _always_ stated their
             | intention to collect the 30% regardless of what payment
             | method you use, because as far as they 're concerned it's
             | _not_ a payment processing fee. They view it as a platform
             | fee that you pay for access to iOS, the App Store, and
             | other services, and so far regulators and governments have
             | agreed with them on that.
             | 
             | What's changed here is that Apple has now set a number to
             | the "payment processing" portion of their fee. This gives
             | them a way to cave on alternative payments while still
             | retaining the bulk of their profits.
        
           | 13415 wrote:
           | Not bothering would be the equivalent of the app store
           | closing in this case, which would mean that iPhones would
           | have to be open. So that would be the ideal outcome (except
           | for Apple).
        
           | Guest42 wrote:
           | It's rather tiresome for people to alternate between general
           | and specific in order to be argumentative as opposed to
           | staying on topic and contributing to the issue at hand.
           | 
           | No, the poster isn't implying that all businesses should be
           | capping their fees. That's absurd. However, Apple is not all
           | businesses and regulation is structured in a way that has a
           | number of conditions. I for one am glad that the department
           | of insurance makes my car insurance affordable and that when
           | I purchase water it's not from a private equity firm.
        
             | endisneigh wrote:
             | > No, the poster isn't implying that all businesses should
             | be calling their fees. That's absurd.
             | 
             | That's literally what they said
             | 
             | >> "Well, you said the costs of payment processing is 3%,
             | that's what we'll cap your commission at".
        
               | [deleted]
        
           | yokoprime wrote:
           | For payment solutions, yes. You don't see VISA charging 30%
           | on top of each transaction.
        
             | endisneigh wrote:
             | Nothing is stopping you from just using a web app and
             | collecting money with a cheaper method and not having an
             | app on the Apple app store, though.
             | 
             | If it's so bad, don't do it?
        
               | clusterfish wrote:
               | Nice whataboutism, except Mobile Safari is intentionally
               | crippled to not support PWAs well.
        
               | endisneigh wrote:
               | Nobody said anything about PWAs. Your app can be a pure
               | web app.
               | 
               | If you don't want to do that then pay the fees. Simple as
               | that.
        
             | lolinder wrote:
             | Apple has always argued that the 30% is not a payment
             | processing fee. It's the App Store fee, which until today
             | has _bundled_ their payment processing fee with fees to
             | cover their other expenses (and make them a tidy profit).
             | 
             | The argument over alternative payment methods has always
             | struck me as odd for precisely this reason--throughout the
             | Epic case Apple has made it clear that if they allowed
             | alternative payment methods they would _still_ charge the
             | 30% fee for the other services.
             | 
             | Is 30% (or 27%) too steep for what the App Store provides?
             | Probably. But fighting over the 30% as a payment processing
             | fee is a huge misstep, because regulators will _always_
             | take Apple 's side on that question.
        
             | olliej wrote:
             | I don't see apple doing that either. This article says very
             | clearly that the payment processing fee is 3%.
        
             | LordDragonfang wrote:
             | It's not 30%, but a very large portion of VISA's profits
             | comes from the fees they charge; VISA's fees are not capped
             | to their "costs" of operating. VISA exists as a literal
             | precedent that you can profit off a commission for a
             | financial transaction.
             | 
             | The issue in question isn't whether Apple should be allowed
             | to profit, it's whether they should be allowed to abuse
             | their effective monopoly position to set their commission a
             | literal order of magnitude higher than any other processor.
        
               | clusterfish wrote:
               | In EU credit card fees are capped by law, and the duopoly
               | is surviving just fine, just with less obscene profits.
               | Should do the same with mobile app stores.
        
       | dathinab wrote:
       | Hm, does that mean they implicit accepted that 3% is a maximum
       | price for a payment system to not count as profiteering?
       | 
       | And hence 27% is the price for the service of forcing you to use
       | their app-store, sorry I mean non well working scam scanning,
       | sorry I mean sup-par mac only build tools, ah wait I mean
       | download cost, ... or maybe their sometimes abusive and often
       | non-well working moderation, ah no that can't be it either. Maybe
       | it's subvention the hardware cost as a iPhone only costs...
       | wait... Why does it seem like profiteering no matter how I try to
       | look at it??
       | 
       | Jokes aside, in app payments are basically only monetary
       | processing. Now you can claim that in app-payments are subvention
       | reduced up-front payments. But that only holds up up to some
       | degree of average per-active-user payment. But at least the more
       | revenue rich phone games to quite a bit above that.
        
         | jacquesm wrote:
         | 3% sounds about right. That's the order-of-magnitude fee
         | charged by commercial payment service providers (1 ... 5% in
         | practice).
        
       | etchalon wrote:
       | This is exactly what I'd expect from Apple, and Google, and any
       | platform provider.
       | 
       | It makes the point that their fee isn't about credit card
       | processing.
       | 
       | I suspect, baring specific language in the law baring the
       | practice, Apple, Google, etc. will force their commissions no
       | matter what other allowances they're asked to make.
        
       | endisneigh wrote:
       | What I don't understand is - if you don't like the fees, why
       | don't you just not use it? If you make money after the fees then
       | isn't it worth it compared to the alternative?
       | 
       | If people actually just stood firm against the fees then viable
       | alternatives would manifest.
        
         | ApolloFortyNine wrote:
         | Good luck running a business where (in the US) you lose 50% of
         | potential customers instantly, and those 50% will tell everyone
         | else to use x because it's available on both platforms.
         | 
         | It's really the 50% shouting on social media that hurts the
         | most. Instead of maybe recommending your app, they will
         | recommend one of your competitors that support both.
        
         | vorpalhex wrote:
         | Yeah, if you don't like the fee, just make your own phone
         | hardware, your own processor, your own screens, your own OS..
         | 
         | The same way when automakers tried a similar game and then..
         | the government stepped in, slapped the tar out of them with
         | regulation, and told them to play nicely with third parties or
         | lose the ability to do business.
         | 
         | Or when utilities had natural monopolies were preventing
         | competition and.. then the government put strict regulations on
         | them, set pricing rules and allowed significant control of
         | them.
         | 
         | The answer is that if the two dominant parties have managed to
         | keep out competitors and basically engage in collusion, the
         | government should correct the situation.
        
           | abletonlive wrote:
           | > Yeah, if you don't like the fee, just make your own phone
           | hardware, your own processor, your own screens, your own OS..
           | 
           | So should companies not be rewarded for making an awesome
           | system so they can charge these commissions? I mean Amazon
           | and Microsoft can't blame Apple for their failure to produce
           | phones people want to use...they certainly had the resources,
           | and still do.
        
             | vorpalhex wrote:
             | They are.. by selling a phone. You didn't get your iphone
             | for free. Apple makes money off the hardware - more money
             | than it does the app store.
        
               | abletonlive wrote:
               | So you're arguing that because apple makes a profit from
               | the initial sale of the phone...they shouldn't _also_
               | make a profit from the services they provide for that
               | phone (such as maintaining an app store and the
               | infrastructure for that app store)?
               | 
               | That's a bold position to take. What makes you feel
               | entitled to that? Did apple ever sell iPhones as a one-
               | and-done purchase? I'm pretty confused about how you're
               | justifying this argument. It seems to me that you think
               | all developers have some kind of entitlement to make a
               | profit off of Apple's ecosystem without Apple making a
               | profit from an ecosystem they risked a lot to build,
               | because Apple is already making a profit off the iPhone.
               | Am I following that correctly?
        
               | aspenmayer wrote:
               | > Did apple ever sell iPhones as a one-and-done purchase?
               | 
               | Yes, the original iPhone 2G. It didn't even have App
               | Store on launch version of iOS. In fact, Cydia, the
               | original jailbreak app store, existed on iOS before the
               | official App Store. Saurik can speak to any fees for paid
               | apps featured on Cydia. I remember an SMS app that
               | allowed reply from notifications that I bought through
               | Cydia, but I forget the name, maybe biteSMS? Most apps
               | were entirely free, and Cydia supports adding arbitrary
               | repositories.
               | 
               | So, arguably, the original app purchasing experience on
               | iOS was free and open source. Apple and their App Store
               | couldn't compete, and thus the war against right to
               | compute and jailbreaks.
               | 
               | https://en.wikipedia.org/wiki/Cydia
               | 
               | https://en.wikipedia.org/wiki/App_Store_(iOS/iPadOS)
        
               | abletonlive wrote:
               | So you basically agree all phones since the original
               | iPhone are not sold as one-and-done purchases?
               | 
               | I just don't understand where developers are coming from.
               | Let's say I build a wildly successful theme park. It's
               | the best theme park in the world and only a couple other
               | theme parks exist that is as fun as my theme park.
               | 
               | Because I'm so good at building theme parks, do you have
               | some kind of entitlement to put your ride in my theme
               | park and charge people money to ride it?
        
           | endisneigh wrote:
           | You can make a web app which can be run on the same phones
           | with no fees. The vast majority of apps can be implemented as
           | web apps.
           | 
           | Comparing utilities, based on physical constraints, with
           | digital goods doesn't make any sense. It doesn't require any
           | effort to make a web app relative to the status quo.
           | 
           | Furthermore your example doesn't make any sense because you
           | make money with Apple and pay a fee - you're not paying for
           | nothing. Natural gas, for example, has constraints around
           | distribution and collection. These don't exist for apps.
           | 
           | Ironically, if more developers just made web apps instead of
           | going to app stores it would not only make their apps more
           | accessible as they are inherently cross platform, but would
           | likely lead to the creation of a web App Store to resolve the
           | distribution problem.
        
             | vorpalhex wrote:
             | Except your PWAs won't run or be very nerfed on Safari
             | because it is missing and has been missing all of those
             | APIs for many years.
             | 
             | You could just install Chrome.. oh wait no, no you can't.
             | Apple won't let you.
        
               | endisneigh wrote:
               | So what? It's an option. If more people take it, it will
               | get better. Stadia is literally a web app on iOS, for
               | example.
        
             | astlouis44 wrote:
             | This. Especially with the advent of technologies like
             | WebAssembly, WebGPU, and WebXR, developers can now
             | distribute real-time 3D applications like games universally
             | via the open web, without having to sacrifice 30% to a
             | walled garden.
        
               | vorpalhex wrote:
               | Do those APIs work on safari, the only browser you can
               | have on iOS?
               | 
               | No. No they don't. Oops.
        
           | kmlx wrote:
           | > Yeah, if you don't like the fee, just make your own phone
           | hardware, your own processor, your own screens, your own OS..
           | 
           | no, you just need a webapp.
        
             | astlouis44 wrote:
             | Yup. Wish more developers would realize this.
        
               | vorpalhex wrote:
               | I wish more developers would realize Safari doesn't
               | support most modern browser APIs.
        
               | kmlx wrote:
               | it depends how modern, but most are there. we develop
               | primarily on safari and see no issues.
        
         | post_break wrote:
         | How many options do you have for gas, water, or power where you
         | live? If I don't like the $18 a month fee for my gas bill,
         | before I use a single ccf of natural gas can I just not use it?
         | 
         | If I don't like the app store fees can I just not use it? You
         | see what I'm getting at?
        
           | endisneigh wrote:
           | Silly comparison - natural gas prices are regulated, but
           | furthermore you don't make money from your natural gas
           | payment inherently.
           | 
           | You only pay Apple store fees if you make money. Your
           | comparison is dumb. Charge more to your users and be done
           | with it a all of your Apple competitors are bound by the same
           | rule.
        
             | post_break wrote:
             | If I make an app that Apple doesn't like, I can't put it on
             | my iPhone. I literally cannot put my own apps on my phone.
             | Or install apps from developers outside of the app store. I
             | can do so on my computer, why not my phone. "well just
             | switch to android" isn't a good excuse.
        
               | endisneigh wrote:
               | You can make a web app that works on safari, which runs
               | on iPhones. So your entire point is wrong.
               | 
               | Do you think this site you're on is originally an iPhone
               | app?
        
               | post_break wrote:
               | Ahh yes, you want a native app on your phone? I can offer
               | a website instead.
        
       | formvoltron wrote:
       | Why would the Dutch allow this?
        
       | hn_version_0023 wrote:
       | This is usury, full stop.
        
       | notsrg wrote:
       | I'm shocked those defending the Apple tax aren't considering the
       | fact that businesses are just offloading that tax onto consumers
       | making things artificially more expensive for iOS users. Even
       | worse, when you do this you can't communicate _why_ this is the
       | case or tell people you can use the web for cheaper so users feel
       | like you 're just scamming them.
        
         | yokoprime wrote:
         | This is the very reason why I always check if a subscription
         | can be purchased outside of the app store before even
         | considering buying it there. Its usually more expensive as an
         | in app purchase.
        
           | flatline wrote:
           | More expensive as a one-time cost, but managing subscriptions
           | through Apple allows you to pay once for a recurring
           | subscription then cancel and use it for the remainder of the
           | purchase period. Even one unintended renewal will wipe out
           | whatever discount you got from a direct purchase.
        
           | badwolf wrote:
           | I follow an almost exact opposite flow. If I'm on a
           | site/service that has a subscription, I check if they take
           | in-app subscriptions and use that.
           | 
           | I have no desire to deal with endless dark patterns to get me
           | to not cancel a subscription.
        
             | Osiris wrote:
             | That just shows that Apple doesn't have to have a monopoly
             | to compete. They can offer better features, services, etc
             | that people may be willing to pay more for.
             | 
             | Not everyone pays for the extended warranty when they buy
             | electronics/tools but some do because they find value in
             | it.
        
               | jjeaff wrote:
               | Unfortunately, they don't have to actually offer better
               | services. Because they already have the customer base
               | signed up with cc on file, they simply have to not be
               | terrible. Then, no one will even try out individual
               | subscription services because they already have good
               | enough with apple defaults.
        
               | ninkendo wrote:
               | I think a more apt analogy would be: I'd pay a premium to
               | shop at a store where there aren't any pushy associates
               | trying to get me to buy an extended warranty in the first
               | place.
        
               | wingworks wrote:
               | ^ This! At least here in New Zealand almost all perks of
               | "extended" warranties are useless, as pretty much all
               | things you buy here are already covered under our
               | consumers guarantee act.
        
               | rootusrootus wrote:
               | Nothing is free. An extended warranty is an insurance
               | policy, the purchase price for it is the premium. It's
               | pretty much the same for the original warranty. It may be
               | included in the purchase, but it's still just an
               | insurance policy that the manufacturer has rolled into
               | the price of the product.
               | 
               | So when you have strong regulation like a consumer
               | guarantee act, it just means everything you buy is priced
               | higher to account for it.
        
               | wingworks wrote:
               | Very true, which is why it's such a scam to sell extended
               | warranties here in NZ, as you get almost no value for it.
               | Yet allot of the big retail chains still do it.
        
               | heartbeats wrote:
               | This is ... not true, though?
               | 
               | Consumer goods are more expensive in most of Europe,
               | sure, but that's because of VAT - after adjusting for
               | VAT, the price is usually the same.
               | 
               | This makes sense if you consider that customer protection
               | usually covers (1) returns and (2) defective goods.
               | Returns are not exactly a cost to the retailer - they can
               | still sell the merchandise, and replacing defective goods
               | obviously only applies if you stock them. If you weren't
               | selling bad goods, you wouldn't have that problem.
        
               | FpUser wrote:
               | I do not pay a premium and have no problem telling pushy
               | "associates" to go eff themselves.
        
               | ninkendo wrote:
               | Good for you.
        
               | smoldesu wrote:
               | If that were true of most customers, Apple could easily
               | allow other storefronts, since nobody would be inclined
               | to use anything but their service. Without competitors
               | though, there's no way to determine if Apple's offerings
               | really are competitive.
        
               | asiachick wrote:
               | I'd pay a premium to shop at a store where I could buy
               | something quickly. Vs Apple stores where first I have to
               | flag down someone, then they go tell me to stand at some
               | table and wait, then 5-10 mins later someone comes to
               | help me and ask too many questions, then they say in 5-10
               | mins someone will bring out the thing I wanted. And
               | finally I can buy >:( Even ordering online for pickup my
               | stuff wasn't at the pickup counter and they had to call
               | into the back room. That might be fine if it was
               | unannounced but they made choose a 15 minute window to
               | pickup. You'd think they'd prep for that window. Instead
               | of waiting until the pickup time I could have just gone
               | to the store without the preorder and waited a similar
               | amount.
        
             | [deleted]
        
         | LiquidSky wrote:
         | > making things artificially more expensive for iOS users.
         | 
         | It's not artificially more expensive, I'm happy to pay for the
         | service and reliability offered by the App Store.
         | 
         | >users feel like you're just scamming them.
         | 
         | Users feel that way because so many subscription services ARE
         | trying to scam them. As a commenter said below, subscribing
         | through the App Store provides a simple, reliable way to manage
         | your subscriptions and guarantee a cancel if you want without
         | having to deal with whatever dark pattern bullshit apps
         | normally throw up at you.
         | 
         | Choose to pay less and enjoy a world of endless unreliable,
         | shitty apps and shady practices if you want, I'm happy to pay
         | not to.
        
         | sircastor wrote:
         | I'm willing to bet that when developers are able to sell
         | directly without the 30% add on, that it'll be a short time
         | before they start selling at the same price and taking the 30%
         | for themselves.
        
           | xuki wrote:
           | Exactly. I didn't see any indie developers drop their price
           | when Apple reduced the commission to 15% for the first
           | million.
        
         | viktorcode wrote:
         | > making things artificially more expensive for iOS users
         | 
         | Do you have examples of software that costs more on iOS than
         | elsewhere?
        
           | bspammer wrote:
           | YouTube Premium costs a third more to purchase through the
           | iOS app than it does through their website.
        
           | zamadatix wrote:
           | Apple has restricted the ability of an app to point this out
           | so it's not as well known as it should be. Subscriptions are
           | the easiest to compare because you can order the exact same
           | thing two ways on iOS (in app or web) and there it's easy to
           | see just look at Netflix or YouTube or Spotify for obvious
           | examples of apps avoiding the cost or costing more if you pay
           | the Apple tax.
           | 
           | It's a bit silly this needs to be defended by example though,
           | where else do people think the 30% cut on stuff subscription
           | is coming from? Certainly not a 30% margin cut or 30% for
           | payment processing, it's ~27% Apple tax apparently.
        
           | duck wrote:
           | Not the OP, but it could be very well inflating the costs
           | elsewhere as well so you wouldn't be able to see differences
           | across platforms.
        
           | paraph1n wrote:
           | There are several examples listed in this article:
           | https://www.forbes.com/sites/shaharziv/2020/07/08/heres-
           | why-...
        
           | Kique wrote:
           | Not sure if it's still the case, but Spotify would charge me
           | $12.99 through Apple and encouraged me to switch to paying
           | them directly for $9.99
        
           | jeffybefffy519 wrote:
           | Netflix, spotify... you dont have to look far
        
             | jiscariot wrote:
             | If I recall, the amount Netflix is paying to Apple for a
             | cut of subscriptions, is comparable with their AWS bill
             | year over year. Absolute madness.
        
           | vini wrote:
           | I noticed that in games here in Brazil, in Hearthstone, a
           | card game from Activision Blizzard a 40 cards pack cost
           | 279,90 BRL ($52) in the iOS app, if you buy in the PC app
           | it'll cost 99 BRL ($18), almost 200% increase, crazy.
        
         | orasis wrote:
         | That's not really true. Consumers have a fixed willingness to
         | pay and professional app publishers are good at discovering
         | that number, so there really isn't much passing costs onto the
         | consumer.
        
           | notsrg wrote:
           | The company I work for literally charges 30% more for iOS
           | users lol.
        
             | Spivak wrote:
             | And if your iOS users actually pay it then you're a fool to
             | not charge 30% more to your non-iOS users as well.
        
               | clusterfish wrote:
               | Um, no, cost of doing business affects the equilibrium
               | market price. There's no Apple tax outside of Apple's
               | walled garden, so everyone competing outside of it has
               | lower costs and can thus offer lower prices (outside of
               | the walled garden). If you don't, your competitors will,
               | and you'll lose customers.
        
               | Spivak wrote:
               | So yes, in the broadest possible abstract, sure. But
               | we're talking about the sale of digital goods here. What
               | market for game coins, app features, digital content w/e
               | is so intensely price sensitive, apparently fungible
               | enough that switching apps doesn't matter, but then also
               | not at all actually price sensitive since the mostly
               | arbitrary distinction to the consumer "what brand is your
               | phone" means you can charge 30% more?
               | 
               | Like I totally believe you, I'm actually just interested.
        
               | lolinder wrote:
               | > then also not at all actually price sensitive since the
               | mostly arbitrary distinction to the consumer "what brand
               | is your phone" means you can charge 30% more
               | 
               | This distinction isn't arbitrary at all. They're
               | effectively different markets. iPhone owners make more
               | money and spend more money than Android users.
               | 
               | There have been a number of surveys that have shown this,
               | here's one:
               | 
               | https://www.prnewswire.com/news-releases/iphone-users-
               | spend-...
               | 
               | And an older one, but from a bigger source:
               | 
               | https://www.businessinsider.com/the-median-income-for-
               | iphone...
        
           | AnthonyMouse wrote:
           | > Consumers have a fixed willingness to pay and professional
           | app publishers are good at discovering that number, so there
           | really isn't much passing costs onto the consumer.
           | 
           | Prices are set by supply and demand. If you take a 30% cut
           | out of the supplier's revenue, you get fewer suppliers and
           | the price each one can charge goes up because the customer
           | can't switch to a competitor who was driven out of business
           | by the high fees.
        
       | lewisflude wrote:
       | Seems fair to me, 27% commission implies 3% for card handling
       | fees, to level out to the same 30% developers would have to pay
       | doing things the intended way.
       | 
       | All this talk of using "alternative payment systems" just seems
       | like a way to skirt around paying Apple commission.
        
         | Hamuko wrote:
         | I thought that the justification for the 30% commission was the
         | tightly integrated payment system, and not just the fact that
         | you can install the app in the first place.
        
           | lewisflude wrote:
           | That's definitely one aspect of it, but I've always thought
           | most of that fee is simply for the "privilege" of being a
           | part of the Apple ecosystem, being mostly profit for Apple
           | with a portion going towards the hosting, distribution of the
           | App, search/discoverability aspect.
           | 
           | I can definitely see why this fee and it's associated lock-in
           | upsets many consumers and developers. It's clearly a divisive
           | issue right now, and I am unsure we'll see any resolution to
           | the overall narrative until the EU/US forces Apples hand.
        
         | matheusmoreira wrote:
         | There should be no Apple commission in the first place.
        
           | lewisflude wrote:
           | I think the big sticking point is whether smartphones are a
           | generic, standardised thing that requires some level of
           | guarantees for the end consumer on accessing software of if
           | each smartphone is one of many products in a broad category
           | that all have different restrictions and limitations.
           | Essentially the "you have a choice, just use Android"
           | defence. I'm not saying which one is correct here, just that
           | this seems to be the specific fork in the road between
           | differing opinions.
        
             | matheusmoreira wrote:
             | > whether smartphones are a generic, standardised thing
             | that requires some level of guarantees for the end consumer
             | on accessing software
             | 
             | I certainly believe so. Computing freedom should be
             | guaranteed by law.
        
       | neximo64 wrote:
       | They're signalling that other methods or payment are fine, but
       | they're entitled to that commission of 30% (- processing fees i
       | guess)
       | 
       | If people thought the lawsuits were about the commission they're
       | wrong, they were about forcing Apple's method of payment, but
       | even after you get through that they still feel they are entitled
       | to the commission.
       | 
       | You might have your opinions about whether thats right or wrong,
       | but Apple's approach was to look as both as 2 different things
       | whereas everyone seemed to see them as the same. And thats what
       | they took advantage of.
        
         | jacquesm wrote:
         | They are as much entitled to that commission as the Mafia is
         | entitled to theirs.
         | 
         | It's a ridiculous demand. It is a pretty American way of
         | thinking that the courts order is about the payment system
         | rather than because of the commission when clearly, if the
         | commission weren't there companies would not be looking for
         | alternative payment systems to begin with. It's ignoring the
         | spirit of the ruling. Prediction: this won't end well for Apple
         | and it will cost them plenty of goodwill in NL.
        
           | martimarkov wrote:
           | They kinda are entitled - you are build for their OS, using
           | their APIs and SDKs, targeting their customers.
           | 
           | All that needs to be funded somehow plus as I always say -
           | nobody has forced engineers to build iOS apps.
           | 
           | An example: what if US engineers dislike the privacy laws of
           | the EU and start asking to get them removed because you know
           | their app wants to track and stalk ppl without their
           | knowledge.
           | 
           | Maybe not the best example but I hope you get the point
        
             | Isinlor wrote:
             | It's very likely that EU laws will not allow this type of
             | tax anyway.
             | 
             | EU is specifically drafting legislation for gatekeepers in
             | Digital Markets Law.
             | 
             | https://eur-lex.europa.eu/legal-
             | content/en/TXT/?qid=16081168...
             | 
             | Gatekeepers like Apple will have specific obligation
             | according to Article 5:
             | 
             | (b) allow business users to offer the same products or
             | services to end users through third party online
             | intermediation services at prices or conditions that are
             | different from those offered through the online
             | intermediation services of the gatekeeper;
             | 
             | (c) allow business users to promote offers to end users
             | acquired via the core platform service, and to conclude
             | contracts with these end users regardless of whether for
             | that purpose they use the core platform services of the
             | gatekeeper or not, and allow end users to access and use,
             | through the core platform services of the gatekeeper,
             | content, subscriptions, features or other items by using
             | the software application of a business user, where these
             | items have been acquired by the end users from the relevant
             | business user without using the core platform services of
             | the gatekeeper;
             | 
             | And Article 6:
             | 
             | (c) allow the installation and effective use of third party
             | software applications or software application stores using,
             | or interoperating with, operating systems of that
             | gatekeeper and allow these software applications or
             | software application stores to be accessed by means other
             | than the core platform services of that gatekeeper. The
             | gatekeeper shall not be prevented from taking proportionate
             | measures to ensure that third party software applications
             | or software application stores do not endanger the
             | integrity of the hardware or operating system provided by
             | the gatekeeper;
             | 
             | (k) apply fair and non-discriminatory general conditions of
             | access for business users to its software application store
             | designated pursuant to Article 3 of this Regulation.
        
               | neximo64 wrote:
               | None of these stop the % commission they merely say it
               | has to be applied fairy and equally. The fees aren't a
               | gatekeep since everyone has the same treatment and no one
               | is being 'gatekept'
        
               | Isinlor wrote:
               | The law will require to allow third-party app stores. If
               | Apple decides to impose 27% tax on everything sold in the
               | third-party app store then I'm sure other EU competition
               | laws will kick in. As Apple will be explicitly using
               | their power to make direct competition non-viable.
               | 
               | Also, EU does not need to spell everything explicitly.
               | The law will give the EU Commission a lot of executive
               | power to respond to this type of shenanigans from
               | gatekeepers.
               | 
               | Article 7, compliance with obligations for gatekeepers,
               | paragraph 2:
               | 
               | Where the Commission finds that the measures that the
               | gatekeeper intends to implement pursuant to paragraph 1,
               | or has implemented, do not ensure effective compliance
               | with the relevant obligations laid down in Article 6, it
               | may by decision specify the measures that the gatekeeper
               | concerned shall implement. (...)
               | 
               | Article 10, updating obligations for gatekeepers,
               | paragraph 1:
               | 
               | The Commission is empowered to adopt delegated acts in
               | accordance with Article 34 to update the obligations laid
               | down in Articles 5 and 6 where, based on a market
               | investigation pursuant to Article 17, it has identified
               | the need for new obligations addressing practices that
               | limit the contestability of core platform services or are
               | unfair in the same way as the practices addressed by the
               | obligations laid down in Articles 5 and 6.
        
               | simondotau wrote:
               | None of that gets around the fact that the 27% can be
               | defined as the licence fee for intellectual property.
               | There's no principle of capitalism that allows someone
               | else to compete with you on the sale of your own goods.
        
               | jacquesm wrote:
               | A good start for interpreting EU law is to let go of the
               | US literal view of the law and to start looking at the
               | intent of the law. That's a much better predictor for how
               | EU courts will rule.
        
               | neximo64 wrote:
               | I am from an EU country, and studied law. It doesn't work
               | the way you're saying in court.
        
               | jacquesm wrote:
               | Ah, the appeal to authority. To me your just another
               | anonymous commenter on HN. Really, I couldn't care less,
               | every lawsuit has lawyers on both sides and half of them
               | will lose their case, but will maintain that their
               | customer was right all along and that they will now
               | appeal and then when they run out of appeals they quietly
               | slink off into the dark with their money.
               | 
               | EU anti-competitive law has been tested in court time and
               | again by the big telcos and as a rule they have lost
               | every time they tried to get smart with words.
               | 
               | Apple will - I predict - fare no different.
        
               | neximo64 wrote:
               | Whilst my appeal may be to authority yours is based on
               | what you feel is right and wrong and that isn't the same
               | as how the law works. In fact it's built to work against
               | what a consumer feels to what that is fair. You might not
               | like it but fair is tilted towards the large company not
               | the consumer in the EU, especially when it comes to a
               | company making profit.
               | 
               | The big telcos btw always win, but always makes the
               | consumer happy. Have looked at Orange do this countless
               | times.
               | 
               | Why don't you tell me about how happy you feel the EU is
               | green, and then i'll tell you how happy European
               | companies are 'green' now includes natural gas. Both
               | sides win I suppose.
        
               | jacquesm wrote:
               | > The big telcos btw always win
               | 
               | You are factually incorrect, if you really did study law
               | you likely did not finish the course.
        
               | Jensson wrote:
               | EU already forced visa and mastercard to lower their
               | fees, this is exactly the same kind of scenario. EU
               | doesn't tolerate giant companies making themselves into a
               | bottleneck so they can extract more money from the
               | economy.
        
             | sofixa wrote:
             | > All that needs to be funded somehow plus as I always say
             | 
             | You pay for that privilege, in the form of a yearly
             | developer account, so that's a _very_ poor excuse.
        
             | simion314 wrote:
             | >They kinda are entitled - you are build for their OS,
             | using their APIs and SDKs, targeting their customers.
             | 
             | The fix is super obvious, Apple selling shit in my country
             | uses my country population and wealth, so 30% tax on each
             | sell, NOT on profits, We could use the Apple Tax against
             | Apple, if they don't like it they are not forced to sell
             | the products in my country.
        
               | lostlogin wrote:
               | > We could use the Apple Tax against Apple
               | 
               | Just using the tax system against big tech would be a
               | start. It's ludicrous how little tax gets paid once the
               | stupid dodges have been played. Fix those holes and have
               | them pay what the small players pay. That alone would
               | satisfy me.
        
             | Dylan16807 wrote:
             | > you are build for their OS, using their APIs and SDKs,
             | targeting their customers.
             | 
             | Which takes us right back to "Imagine if in the past Apple
             | would have had to pay 30% of their gross to Microsoft in
             | order to be allowed to run their software on Windows."
             | 
             | I'm apple's customer, _and_ I 'm these apps' customer. None
             | of them own me. Apple's not doing any meaningful referring,
             | it should be possible to opt out of any referring they do,
             | and building for an OS should not cost these fees.
        
               | thathndude wrote:
               | You choose to do business with Apple, knowing the terms
               | of the deal. At a certain point that's determinative.
               | Apple doesn't have a majority user base in the US. Google
               | is ready and waiting for defectors.
        
               | candiodari wrote:
               | This is excellent news. You see, I work in networks. I
               | (helped) write the driver that is used on the carrier
               | side of 4G networks, and it's open source, so, like
               | Apple, I retain the copyright. A driver that you have
               | undoubtedly used to order pizza. My code is the
               | "platform" you used to pay that pizza! I am entitled to
               | compensation, and apparently 30% ... wow. Great news!
               | 
               | I'll have 30% of everything you ever paid over your phone
               | now.
               | 
               | Remember, you CHOSE to pay using "my" infrastructure, so
               | it's only fair that I be compensated for that.
               | 
               | Or is your point that these rules only apply to massive
               | US corporations?
        
               | etchalon wrote:
               | You say this as if there aren't deals between patent
               | holders and platforms that are based on revenue
               | percentages.
        
               | Dylan16807 wrote:
               | Patents are quite different from infrastructure. And
               | critical patents are normally kept from charging very
               | high rates by multiple mechanisms.
        
               | etchalon wrote:
               | There are infrastructure agreements which function on
               | revenue basis too.
               | 
               | Critical patents have some limitations, but only because
               | of agreements which were reached in the establishment of
               | specific standards.
               | 
               | If you own the IP, you get to decide how you're
               | compensated for it.
        
             | smcl wrote:
             | > They kinda are entitled - you are build for their OS,
             | using their APIs and SDKs, targeting their customers.
             | 
             | I don't think "my ball, my rules..." applies here,
             | especially since this is all happening as a result of them
             | responding to a regulator in the first place
             | (https://9to5mac.com/2022/01/24/apple-netherlands-dating-
             | apps...)
        
             | jacquesm wrote:
             | Oh I got the point alright: a large US entity (who by hte
             | way is an expert at dodging taxes themselves) believes that
             | they can ignore a court ruling by playing word games and
             | are entitled to a 30% tax on all of the income peripherally
             | generated if their eco-system was touched at some point in
             | time. It's ridiculous.
             | 
             | As for that privacy law: that pertains to EU data subjects.
             | So it isn't 'not the best example' it is a terrible
             | example, especially given that the ruling here is very
             | similar in nature.
        
             | harperlee wrote:
             | > you are build for their OS, using their APIs and SDKs
             | 
             | Already paid by the user. You are building for the user. Do
             | you pay the house builder for the poster you nail in your
             | wall?
             | 
             | I only get that argument for the actual store, since there
             | is a curation service being provided. But the OS? No way.
             | If anything, apps in an OS ecosystem give more value to the
             | OS; the OS owner should be paying for that ecosystem, not
             | demanding payment.
        
               | simondotau wrote:
               | > Already paid by the user.
               | 
               | Right! So as soon as I've bought one game built with
               | Unreal Engine, I've paid for the engine and should get a
               | discount on all other games which use it.
               | 
               | I'm the customer. I can decide when the company is fairly
               | compensated.
        
               | ducttapecrown wrote:
               | Well, you probably would pay the house builder for the
               | poster you nail in your wall if the house builder stored
               | and delivered the poster that was built with tools the
               | house builder provided. Your analogy does not apply.
               | 
               | For your second point, apps vary in value and I'm sure
               | that there are times when Apple pays somebody to put an
               | app on their store.
        
             | kouteiheika wrote:
             | > They kinda are entitled - you are build for their OS,
             | using their APIs and SDKs, targeting their customers.
             | 
             | So do you also think that Microsoft is entitled to 30% of
             | every developer's income if they want to release an app for
             | the Windows platform? After all they're building for their
             | OS, using their APIs and SDKs and targeting their
             | customers.
        
               | simondotau wrote:
               | They did exactly that for their Xbox platform.
               | 
               | The fact that Microsoft _chose_ to do otherwise with
               | Windows isn't a particularly strong argument.
        
       | sva_ wrote:
       | I know that Apple's Terms say that you can't explain to your
       | users, that they have to pay some 30% "Apple Tax" for in-app
       | purchases. But could you just say something like "30% mobile
       | phone app fee", to go around it, while making it clear to the
       | user why they're paying this amount? I feel like it would be
       | illegal for Apple (or Google Play) to prohibit developers from
       | breaking down costs like that? Like I don't get it.
        
         | smoldesu wrote:
         | Fortnite did this, which lead to them being removed from the
         | App Store shortly thereafter.
         | 
         | [0] https://www.ithinkdiff.com/fornite-mega-drop-offers-
         | discount...
        
           | xuki wrote:
           | Fortnite also allowed alternative payment methods. I think
           | that's the main reason why they were removed.
        
         | gjs278 wrote:
        
         | lolinder wrote:
         | They _do_ prohibit developers from breaking down the costs like
         | that. This is the guideline they would cite you for:
         | 
         | > 3.1.3 The following apps may use purchase methods other than
         | in-app purchase. Apps in this section cannot, within the app,
         | encourage users to use a purchasing method other than in-app
         | purchase.
         | 
         | Yes, it should be illegal for them to prevent you from breaking
         | the cost down, but they have historically interpreted this
         | statement that way.
        
           | sva_ wrote:
           | I suppose you could read it like that. I think consumers
           | should have a right to know what they're paying for. One
           | should be able to say that you pay x for hosting, y for
           | software development/maintenance, and z for the platform
           | offering the app for you. I don't see how anything against
           | this could prevent someone from breaking it down like that.
           | But here we are.
        
           | pixl97 wrote:
           | We need to make it a state law first, that fees like this
           | cannot be hidden. Have CA or someone else large do it.
        
       | klelatti wrote:
       | Problem for Apple is that if it charges less then it shows that
       | it can run the store for less than 30% in total - and what is
       | true in NL is true everywhere else - which is not helpful for
       | them in antitrust actions.
       | 
       | Burning goodwill and brand value while they do it though.
        
         | thathndude wrote:
         | We know they can run it for way less because they disclose
         | numbers in their earnings, and the Epic litigation turned up
         | emails from Phil talking about this issue and going down to
         | like 10%.
         | 
         | The issue is what's the recourse and remedy? Go to
         | Google/Android, which charges a comparable fee and tends to be
         | less valuable?
         | 
         | Folks are getting their money's worth on Apple's ecosystem. But
         | they somehow feel like they should just be getting more, just
         | because. But apple doesn't have a monopoly. They just have a
         | good product.
        
       | baxtr wrote:
       | I have an app in the App Store and pay 15% commissions, since we
       | are below 1 mn USD in sales. In exchange, I can roll-out my app
       | in 175 countries and have not deal with local authorities re
       | taxes etc.
       | 
       | For me, that's a pretty good deal. I could never do this on my
       | own. Any other provider would probably take the same cut for that
       | kind of service.
        
         | vkou wrote:
         | How much revenue do you earn in the lower 170 of those
         | countries, and does it exceed 15%/30%? of the revenue you earn
         | in the upper 5?
        
         | samwillis wrote:
         | There is a massive difference between 15% and 30%. The latter
         | could never be justified, I think the former probably could be
         | with the services that Apple offer as a vendor (particularly
         | for small businesses). But it still feels too high.
         | 
         | The 27% in the article is just mad, I think they could justify
         | 10% when not using their payments, maybe. But it would be
         | better to have an opt out where there is a set rate for app
         | approval (this could easily be hundreds of dollars) and a
         | download cost for app/data delivery and storage.
        
           | jacquesm wrote:
           | PSPs typically charge between 1 and 5% depending on the
           | amounts, the kind of transaction and the risks involved.
        
             | samwillis wrote:
             | Quite right, however I do think Apple offer slightly more
             | than just payment processing. If we say transaction costs
             | are 3%, do I think apple can justify an additional 26%? No.
             | Do I think they can justify 12% for the validating of apps,
             | providing marketing tools in the App Store, data storage
             | and distribution? Maybe yes, it still feels a little high.
             | 
             | It's why I would like to see it broken down as line items
             | and for them to make it optional to just pay the costs of
             | each service directly rather than them charging a % cut.
        
               | schmorptron wrote:
               | 12% is the number Epic Games arrived at for their game
               | store, which they heavily used to pressure steam. How
               | realistic it really is for all of the services SteamWorks
               | offers and how much of that 12% would change in the
               | future once tencent loss-leader funding runs out remains
               | to be seen, but based on the current (games) market it
               | seems like a reasonable number, especially at the scale
               | apple operates at.
        
               | jacquesm wrote:
               | If it would be valuable enough then people would not be
               | trying to avoid this particular part of their service.
        
               | samwillis wrote:
               | True, and I fully support the push back against the fees.
               | Hopefully they will end up lowering them to a point where
               | everyone is happy.
        
         | thathndude wrote:
         | This whole fight is a bunch of billionaires slinging mud at
         | each other and trying to win over the court of public opinion,
         | which is largely not affected.
         | 
         | The drop to 15% took too long. But it's here now. If the Epics
         | of the world want to enlist/manipulate the suffering of the
         | "little guy," they really can't anymore.
        
           | sofixa wrote:
           | > The drop to 15% took too long. But it's here now
           | 
           | Only thanks to the Epics of this world.
        
             | thathndude wrote:
             | Maybe so. But it wasn't due to developers leaving or
             | putting market pressure on Apple. If developers feel so
             | cheated and abused by Apple why not go to the US majority
             | platform of Android? They don't because Apple presents them
             | tremendous value. They just want more of the pie. Nothing
             | wrong with that. But let's call it what it is.
        
               | sofixa wrote:
               | There's also a big power disbalance - a developer
               | complaining about Apple's policies and rent seeking is
               | completely at their mercy and mind find their account and
               | apps blocked for "violating their ToS" or some other
               | reason. Yes, the Apple platform is vastly more profitable
               | for developers because most Apple customers are
               | accustomed to spending money ( as opposed to the Android
               | market which includes everything from $/EUR 100 headsets
               | from obscure brands like Wiko to $/EUR 2k premium Samsung
               | or whatever devices - the latter might be okay on
               | dropping $/EUR 10 on app, the former certainly wouldn't).
        
         | madeofpalk wrote:
         | > Any other provider would probably take the same cut for that
         | kind of service.
         | 
         | Too bad we'll never know because Apple prevents the competition
         | on their platform!
        
           | [deleted]
        
           | baxtr wrote:
           | That's an easy one. Let's look at the other big ecosystem
           | Android. There we have a couple of alternate stores like
           | Amazon's. They take 30% as well? I am not sure why it should
           | be different with Apple.
           | 
           | Maybe, just maybe, running a well-curated app store is just
           | something that is expensive.
        
             | tsimionescu wrote:
             | > Maybe, just maybe, running a well-curated app store is
             | just something that is expensive.
             | 
             | Are you trying to claim that Apple and Google are each
             | running a "well curated" app store?
        
               | abletonlive wrote:
               | Apple's app store is the best app store that I've ever
               | seen. Please point me to a better one?
        
               | ambicapter wrote:
               | I'll bite, show me an example of a "well curated" app
               | store to your standards.
        
               | bsagdiyev wrote:
               | Definitely not the App Store with all the trash and scam
               | apps allowed.
        
               | Apocryphon wrote:
               | F-Droid is right there. They're niche, but that further
               | underscores that even a group of open source volunteers
               | can maintain a well-curated app store.
        
               | abletonlive wrote:
               | There's like less than 10,000 apps on that store. You're
               | comparing apples to oranges.
        
               | Apocryphon wrote:
               | Comparing apples to pomegranate seeds, surely. But
               | perhaps that's the point. If third party app stores were
               | allowed, they needn't all be shoddy wannabe Apple App
               | Stores run by rival tech giants trying to publish as many
               | apps willy-nilly to cut into Apple's market. Instead,
               | perhaps there could be many boutique curated app stores,
               | some non-profit even, that aim to cater to specific user
               | experiences.
               | 
               | The benefit is that it could be a solution for the app
               | discovery issues that currently come from having a single
               | App Store with a single search interface. Users with
               | specialized interests or needs can subscribe to smaller
               | third party app stores as they see fit. There would be
               | competition in app discovery. More customization in user
               | experiences. Variety in editorial control.
               | 
               | It's a bit akin to reversing the current state of the web
               | where giant closed sites such as Facebook or Google are
               | single-entry points, and going back to the past where
               | there were web communities and webrings. A Neocities for
               | apps would be neat.
        
               | [deleted]
        
             | viktorcode wrote:
             | Has nothing to do with the costs. 30% is the de-facto
             | default revenue sharing scheme, and developers are well
             | accustomed to it.
        
               | dragonwriter wrote:
               | > Has nothing to do with the costs
               | 
               | A price that has nothing to do with costs is a monopoly
               | rent; in a competitive market marginal prices are driven
               | down to marginal economic costs by competition.
        
             | shkkmo wrote:
             | Android has several free stores, inclusing ones that
             | support open source software.
        
             | vorpalhex wrote:
             | F-droid is free.
             | 
             | Is f-droid magic?
             | 
             | The Kindle store doesn't take 30%.
        
             | searchableguy wrote:
             | Android has plenty of free stores and with v12, those
             | stores can also update apps automatically. It's going in
             | the great direction.
             | 
             | I use 3 different stores on my phone for example.
             | 
             | Of course, an average person doesn't need that many. I use
             | fdroid for sensitive apps (I can verify an app build there
             | compared to playstore) and some developers provide apps
             | without google services framework on froid as an
             | alternative to their playstore version.
        
             | disgruntledphd2 wrote:
             | Nah, it's because Apple and Google are a cartel with
             | respect to app fees.
             | 
             | Like, 30% is a _crazy_ amount to take, at the scale they
             | operate at.
        
         | NicoJuicy wrote:
         | Stripe does taxes and is way cheaper. 10% of apple's fee or
         | smthg
        
           | HatchedLake721 wrote:
           | Stripe doesn't do taxes. Only recently they added ability to
           | calculate how much tax you legally need to charge in some
           | jurisdictions. Filing the right taxes in those countries is
           | still your responsibility.
        
           | mrtksn wrote:
           | "Does tax" is a bit too broad:
           | https://stripe.com/docs/tax/registering
           | 
           | They help you collect taxes but they don't manage the tax
           | payment processes. You will still need to create a company in
           | France or register for VAT in France, understand the French
           | accounting and laws, them pay the French taxes if you sell to
           | people in France, for example.
           | 
           | It's also only 35 countries. No match for what Apple does.
        
         | viktorcode wrote:
         | Bigger developers who pay 30% can do that on their own. Hence
         | the legal lobbying to make platform gatekeepers to cede some
         | ground.
        
         | jacquesm wrote:
         | At your level that makes sense. But if you were more successful
         | there would come a point at which you would be better off to
         | process your payments yourself and you should be free to do so.
         | Because then you would be doing all the work rather than Apple.
         | 
         | Apple is not a government, they should not be able or allowed
         | to levy taxes.
        
           | baxtr wrote:
           | How do you think big apps started?
        
             | jacquesm wrote:
             | That is not the kind of argument that works in an anti-
             | competitive setting.
             | 
             | The fact that I went to your school does not give you a
             | right to a chunk of my lifelong income, the fact that you
             | once sold me a tool doesn't either and so on.
             | 
             | If there is no performance there is no right to invoice.
             | The only entities that can do that legally are called
             | governments, which - incidentally - Apple is doing their
             | damnest to not pay taxes.
        
               | baxtr wrote:
               | Of course it does, when you get big by visiting my school
               | and knowing this before.
               | 
               | It is just absolutely ludicrous to get big on the back of
               | a giant and then to start complaining. Just get big
               | without it that is what you wish.
               | 
               | Re tax evasion: EVERY mid-sized company in Europe that I
               | have worked for has elaborate tax evasions schemes in
               | place, mainly by having other entities in countries like
               | Luxembourg.
               | 
               | It's the fact that the EU tolerates places like
               | Luxembourg an Ireland that this happens. No one talks
               | about it because it's just better for headline to go for
               | the big Californian names.
        
               | jacquesm wrote:
               | Well, I hope you pay your mom 30% of your income then
               | because you got big on the back of her work.
               | 
               | Seriously though, how you get started is immaterial, you
               | should be free to change service providers, especially
               | service providers that are price gouging you when you
               | feel that you can no longer justify their cut.
               | 
               | As for the tax avoidance (not evasion, that's an
               | important distinction here), yes all the big guys do it,
               | but that does not make it right and if Apple were to
               | actually pay their taxes I would see that as them at
               | least understanding the pain of having to pay a good
               | chunk of your income every year.
               | 
               | I pay _my_ taxes and contribute to my community through
               | them, Apple siphons off a very large chunk of the worlds
               | wealth into the pockets of a very small number of
               | shareholders and now wants to argue that they have an
               | unassailable claim to 30% of the income of other
               | companies. And I strongly disagree with that.
               | 
               | If they charged between 1 and 5% for their service that
               | would be fine by me, but it would still not give them an
               | automatic right to this fee, they would have to compete
               | with everybody else.
               | 
               | Anti competitive behavior has one clear and common thread
               | running through it the world over: an element of abuse
               | and that is clearly present here.
        
               | baxtr wrote:
               | Unfortunately, my mom died a couple of years ago, so no I
               | don't pay anything :)
               | 
               | I believe we have a fundamentally different world view,
               | so I am not sure if it makes sense to continue debating.
               | 
               | I believe in meritocracy. Apple put hard, hard work into
               | building an ecosystem of 1.8 bn active devices. I believe
               | they are entitled to reap the benefits and not let any
               | upstart compete with them as they wish.
        
               | tsimionescu wrote:
               | > Apple put hard, hard work into building an ecosystem of
               | 1.8 bn active devices. I believe they are entitled to
               | reap the benefits and not let any upstart compete with
               | them as they wish.
               | 
               | So you don't believe in meritocracy, you believe in
               | perpetually inherited wealth.
               | 
               | Meritocracy would mean that, at any point in time,
               | whoever is the best at doing something should rise to the
               | top. Maintaining someone else's advantage because they
               | were the best at some previous point in time actively
               | works against a meritocracy.
               | 
               | This is like saying that nobility is a form of
               | meritocracy, as Queen Elizabeth II's great great great
               | grandmother put hard, hard work into building an empire,
               | so she should now entitled to reap the benefits, not let
               | some upstart president of a colony compete with her as
               | they wish.
        
               | jacquesm wrote:
               | If you believe in a meritocracy then you should see the
               | irony in that you are defending a de-facto monopolist and
               | their rent-seeking behavior, which is an abuse of power.
               | 
               | The rent seekers are the inheritors of a machine that
               | they themselves did not build (the shareholders of
               | Apple), and who are taking away a good chunk of income of
               | those whose products people wish to use, a sure sign of
               | merit.
        
           | simondotau wrote:
           | Calling it a tax doesn't make it a tax.
        
             | jacquesm wrote:
             | You are right, it isn't a tax. It is graft. But the effect
             | is much the same.
        
               | simondotau wrote:
               | Is the license fee on games for PS4 or Xbox a tax or is
               | it graft?
        
         | Aulig wrote:
         | There's merchants of record like Paddle.com that do the exact
         | same thing (handle taxes on software sales for you) and they
         | charge 5%. And that includes payment processing fees they have
         | to pay to Paypal etc. So with Apple's scale, they could easily
         | offer this service at below 5% commission.
        
         | onion2k wrote:
         | _For me, that 's a pretty good deal. I could never do this on
         | my own._
         | 
         | No one is saying Apple shouldn't offer the service, or that
         | it's not a good service, or even that Apple shouldn't charge
         | 15%. If you think Apple do a good job and offer value for money
         | then you should use their service and pay what they charge.
         | 
         | The only thing people want is the opportunity to use a
         | competing service. That's it.
        
           | thathndude wrote:
           | Google Play Store. What am I missing?
        
             | onion2k wrote:
             | It doesn't work on iOS.
        
               | zepto wrote:
               | Don't use iOS then. That's always a choice.
        
               | vorpalhex wrote:
               | Cool, let me install linux or android on my iphone then.
        
               | stale2002 wrote:
               | It is also our choice to use anti-competition laws, to
               | require Apple to not engage in anti-competitive
               | practices.
               | 
               | If you don't like it, then feel free to vote for
               | something else (but if you lose the vote, thought luck),
               | or move to a different country. Your choice.
        
             | colinmhayes wrote:
             | My phone does not have the Google Play Store
        
             | martin_a wrote:
             | F-Droid is a thing. And I think it's gaining popularity,
             | too.
        
           | HatchedLake721 wrote:
           | What people and what competing service?
           | 
           | People as in consumers? 99% of Apple consumers don't care
           | about this drama. They just want to click and install an app
           | that's safe, vetted, and no one will steal their credit card.
           | 
           | Same as I don't care when digitally buying PlayStation games.
           | I don't care how much Sony charges developers to be on their
           | marketplace, and I don't want to use alternative stores with
           | additional places where I have to put in my credit card or
           | ask for refunds.
        
             | leoedin wrote:
             | Consumers might start to care if it means every app is 20%
             | cheaper.
        
               | simondotau wrote:
               | As someone who has had to deal with subscriptions on apps
               | on my wife's phone, "20% cheaper" but outside of the
               | Apple payment ecosystem sounds way more expensive.
        
             | onion2k wrote:
             | _99% of Apple consumers don't care about this drama._
             | 
             | At the moment there's no point in caring. You don't have a
             | choice, so why worry about it?
             | 
             | You have to remember that you, as someone who doesn't care
             | about alternative stores and wouldn't switch, aren't the
             | market for an alternative store. This is about _other
             | people_ and _their_ freedom to choose. Arguing that the
             | Apple iOS store works for you and therefore it should work
             | for everyone else is not how free markets work.
        
               | HatchedLake721 wrote:
               | If Apple iOS store doesn't work for you, there's Google
               | Play store. Free market has nothing to do with how
               | software is loaded on a hardware.
               | 
               | There were more options in the past.
               | 
               | There was Windows Mobile, Windows Phone, BlackBerry,
               | Nokia, Symbian, etc.
               | 
               | But when Apple came to market, they made such an
               | excellent device, along with great developer and consumer
               | experience, that developers agreed for 30% cut and most
               | decided to ditch developing for other platforms, and
               | consumers decided to ditch other now "shitty" phones
               | where they couldn't download their favourite apps for.
               | 
               | Microsoft released great phones, but still had issues
               | with software. They tried solving that with throwing
               | money at developers, but developers still didn't want to
               | develop for Windows Phone.
               | 
               | Developers played crucial part in the last 10 years to
               | form the market where we are today.
               | 
               | And suddenly in 2022, after playing on the same terms for
               | the last 10 years, an access to a marketplace with 1+
               | billion active users needs to be a free, basic human
               | right that everyone cries for.
        
               | tomjen3 wrote:
               | Would I be free to choose to pay for your App through
               | Apple? Or would the developer have the choice, and I end
               | up having to call them to end the subscription the way so
               | many news papers require you to?
        
               | tsimionescu wrote:
               | Can you currently pay for gas through Apple? Or for your
               | Netflix account? Or for installing Mentor Graphics on
               | your Mac?
               | 
               | Why would a business transaction between you and a third
               | party necessarily involve Apple being a payment option?
        
               | HatchedLake721 wrote:
               | Because Apple given the third party access to you via a
               | marketplace.
               | 
               | And you are a participant of this marketplace, because
               | Apple spent billions on R&D and ended up being so good,
               | that developers and consumers abandoned other platforms
               | in droves.
               | 
               | Apple also smoked previous multibillion competitors
               | (BlackBerry and Nokia) into shame, and they're now part
               | of history and MBA lectures on how a young and innovative
               | player can kill your slow and boring business in a short
               | time.
               | 
               | That's why Apple is a market leader, with the best
               | vertically integrated hardware and software devices, as
               | well as a marketplace with billion people that both devs
               | and consumers eagerly want to be part of.
               | 
               | The same marketplace developers agreed to join by paying
               | up 30% of revenue 10+ years ago, while abandoning Windows
               | Phone and others, and playing part in the shaping the
               | market where it is today.
               | 
               | And suddenly developers cry wolf that it's a basic human
               | right to have access to a marketplace with 1 billion
               | people for free, which they played active part in
               | building.
        
               | tsimionescu wrote:
               | Apple forces me to use their marketplace to do business
               | with any third party selling software for _my phone_.
               | 
               | It is not "giving access" to third parties, it is
               | restricting them from accessing _my phone_ unless they
               | use Apple 's preferred software distribution method.
               | 
               | The fact that they were in the right place at the right
               | time with the right fashion and right look and feel to
               | capture this market does not entitle them to perpetually
               | profit from it. And I do say "happened to", because the
               | iPhone had nothing other than chance going for it, and it
               | was simply an idea whose time had come. Several others
               | were developing smartphones at the same time, such as
               | Nokia, LG, and Google's Android. Apple had better and
               | faster execution, much better marketing, and luck.
        
               | HatchedLake721 wrote:
               | ... sorry but I'll get out here.
               | 
               | I really don't like people downplaying other peoples' and
               | companies' success that went through sweat and tears,
               | calling it "nothing but chance, simply an idea whose time
               | had come... with a bit of luck".
               | 
               | Yes, just chance and luck a company few days away from
               | bankruptcy became the worlds most valuable business worth
               | 3 trillion in ~20 years and keeps producing world and
               | industry changing services and products.
               | 
               | Not hard work and brilliant execution, just chance and
               | luck! /s
               | 
               | Makes me sad really
        
               | bredren wrote:
               | These are fair points, I am curious how you perceive the
               | existing wireless industry in the United States.
               | 
               | It seems to me that Verizon and others are in a state of
               | perpetually profiting their consolidation of companies
               | that were in the "right place at the right time."
               | 
               | Would you agree with this? If so, do you think these
               | companies are making outsized profits given lack of
               | entitlement?
               | 
               | How would you craft policy that would cover not just the
               | Apple but other companies like wireless carriers?
               | 
               | Separately, you mention Mentor Graphics above. Did you
               | mean to refer to chip-level design tool software?
        
             | passivate wrote:
             | That is a facetious argument. Just because the majority
             | doesn't care doesn't mean the issue isn't important. We
             | don't decide importance of things just based on a vote - we
             | can use also use reason, logic, empathy, etc.
        
             | withinboredom wrote:
             | Wait, so you didn't buy the $60 ten year old game
             | digitally? You went to the GameStop down the street and
             | bought it used for $10? /s
             | 
             | There are alternatives there.
        
             | throwaddzuzxd wrote:
             | > 99% of Apple consumers
             | 
             | That's 5 million people who do care then, considering 500
             | million iPhone users (which is a conservative number).
        
           | ambicapter wrote:
           | Jailbreak your iPhone, put a competing service on it.
        
             | celsoazevedo wrote:
             | Is jailbreak supported by Apple?
        
         | tinus_hn wrote:
         | 15% is really low, considering you can pay using discounted
         | iTunes cards. Typically in the Netherlands you can buy them
         | with 15% extra credit, which is about 13% off.
         | 
         | So you can almost take money from Apple by buying these cards
         | and spending them on your app. The only problem is taxes.
        
         | mongol wrote:
         | Good for you it is a good deal. The problem is that it is the
         | only deal.
        
         | mrtksn wrote:
         | Exactly. It literally enables level playing field for smaller
         | developers who can't simply incorporate in 175 countries and
         | navigate through the rules, regulations of taxes.
         | 
         | The value that Apple provides for the smaller developers is
         | immense, you don't actually see small developers complaining
         | about Apple(with exception to those who were sherlocked maybe)
         | but you see multi billion corporations pretending to be
         | advocating for the little guy.
         | 
         | I'm very annoyed by all this, I'm afraid that they will win and
         | solo developers will lose any chance to make it big without
         | getting screwed by large publishers.
         | 
         | Can you please stop saving the small developers from Apple?
         | Thank you.
        
           | MilaM wrote:
           | And yet somehow indie devs have managed to sell software for
           | macOS for decades before the invention of the Apple App
           | Store. Only the larger software shops are atually running
           | their own payment and licensing backends. Most use payment
           | providers like Paddle or Fastspring. There are also other
           | distribution channels like SetApp for expample.
           | 
           | One thing that Apple has made very easy for devs are In-App
           | Payments. But I think you can argue if that is such a good
           | thing for Apple's customers.
        
             | mrtksn wrote:
             | macOS app ecosystem isn't really thriving and the
             | regulatory complexities arrived after the Internet matured.
             | 
             | Something being possible isn't the same as being good.
             | Selling 1000 copies at %30 commission(it tends to be around
             | %50 once you ad stuff like VAT) is much better than selling
             | 10 copies at %1 commission.
             | 
             | I also think that from the users perspective it's much
             | better to have one place where you manage all your
             | payments/subscriptions/downloads etc. That can be solved
             | through some kind of unified purchasing interface though.
        
               | MilaM wrote:
               | I'm not saying that App Store distribution is useless.
               | But I think vendors should have a choice. If Apple's
               | system is so superior, they have little to worry about.
        
               | mrtksn wrote:
               | The problem is, small developers won't have access to all
               | the options - especially the good options - that the big
               | companies would have.
               | 
               | Currently, if you you manage to make a great app or game
               | you have access to the exact same processes as the Epic
               | or Microsoft.
        
               | pritambaral wrote:
               | > ... you have access to the exact same processes as the
               | Epic or Microsoft.
               | 
               | No you don't. Netflix and Amazon got special deals
               | (before the whole Epic saga) [1] [2]. From partial
               | waivers of the Apple Tax, to Apple-run editorial
               | promotions, to bundling!
               | 
               | "The emails could serve as evidence that for lucrative
               | and powerful partners, Apple seems to be willing to make
               | concessions."
               | 
               | [1]: https://www.theverge.com/2021/5/5/22421734/apple-
               | epic-netfli...
               | 
               | [2]: https://www.theverge.com/2020/4/3/21206400/apple-
               | tax-amazon-...
        
           | jacquesm wrote:
           | > you see multi billion corporations pretending to be
           | advocating for the little guy.
           | 
           | And they are.
           | 
           | The little guys won't stand up to 30% of their gross taken
           | but the big guys can and do. As a result after all the
           | lawsuits have run their course Apple will be charging a much
           | lower fee in the hopes of regaining their payment processing
           | marketshare.
        
             | mrtksn wrote:
             | How do you decide that %30 breaks the business but %15 is
             | fine? Can I see your math please?
        
               | jacquesm wrote:
               | This is not an argument made in good faith so I will
               | ignore it.
        
               | mrtksn wrote:
               | Please don't ignore, I'm curious how I will not stand a
               | chance at %30 but it's fine at %15.
               | 
               | I want to know if this is your gut feeling or do you know
               | something concrete.
               | 
               | Thanks.
        
               | jacquesm wrote:
               | I just look at what other payment service providers
               | charge, they are between 1 and 5% based on volume, risk,
               | transaction size.
               | 
               | There is _plenty_ of competition in the payment
               | processing space.
               | 
               | When you take the card companies' cut into account the
               | fees are even lower for the transaction processing.
        
               | simondotau wrote:
               | Suggesting that what Apple does is equivalent to a
               | payment processor is ridiculous. I suggest looking at
               | Epic v Apple and how that argument went down in court. It
               | was embarrassing to witness.
        
               | jacquesm wrote:
               | Yes, agreed they are more like a mob running amok in a
               | neighborhood but for the moment I'll give them the
               | benefit of the doubt and looking at it purely as a
               | transaction processor.
               | 
               | I wonder how all of those defending Apple in this thread
               | would respond if they jacked up the prices to say 75%.
               | And why stop there?
        
               | simondotau wrote:
               | I was hoping for a serious conversation.
        
               | mrtksn wrote:
               | How do you pay your taxes in UK, Turkey, Poland, USA,
               | Japan, China, Australia and the rest of the 175
               | countries? How do you handle the regulatory requirements
               | in each country and how do you navigate through the trade
               | agreements?
        
               | jacquesm wrote:
               | If you don't know the answers to these questions, why are
               | you even active in this thread?
               | 
               | I've been running an international business for a couple
               | of decades and this has never been a problem at all.
        
               | mrtksn wrote:
               | I'm asking you to enlighten me. Currently I don't have to
               | deal with any of these, Apple handles all that for me, I
               | like that and that's why I'm active in this thread. I'm
               | defending a service that I see value in but maybe you can
               | shine a light and demonstrate that all these can be
               | handled for cheaper and easier than using Apple's service
               | that charges %15 to %30.
               | 
               | I'm asking legitimate question, I'm puzzled by your
               | dismissive tone. How do you sell software and services in
               | 175 countries for less work and commission than Apple's
               | service?
               | 
               | Good for you that you are running international business
               | for a couple a decade know, would you share some of that
               | knowledge?
               | 
               | Thank you.
        
               | jacquesm wrote:
               | That it works for you is fine. You obviously have no
               | incentive to look further than what works for you and you
               | are fine with paying 30% for a service that is not
               | competitive but that is convenient.
               | 
               | If you were a bit larger that equation would change. Your
               | first step would then be to use a commercial payment
               | services provider such as Stripe, Adyen or any of the
               | others to process the transactions for you (rates: 1 to
               | 5%), possibly falling back to Apple in case their
               | coverage doesn't perfectly overlap. Then at an even
               | higher level of transactions you could choose to do the
               | payment processing yourself.
               | 
               | It's pretty simple, really. And as for taxes: that too is
               | something that you can arrange in different ways,
               | depending on where your main place of business is
               | registered.
               | 
               | My dismissive tone is because it appears that you want me
               | to do a bunch of homework for you while at the same time
               | arguing that there is nothing to be concerned about in
               | 10's of comments in this thread. You have already made up
               | your mind and seem to use questions as a way to argue
               | rather than that you are really interested in the
               | answers. I predict that as a result of this response you
               | are going to come up with another set of questions for me
               | to answer or a new set of arguments that move the
               | goalposts away from your previous claims.
               | 
               | But the essence of my response is: anti-competitive
               | behavior can not be argued for by utility to some subset
               | of the customers. The phone company provides a lot of
               | value. But if they behave in an anti-competive way, for
               | instance by price gouging customers on something that
               | costs them peanuts such as roaming then they deserve to
               | be smacked down, even if some people will argue that you
               | could of course buy a different phone for every country
               | as an alternative, and so those roaming charges are
               | acceptable because they are cheaper. That misses the
               | point entirely.
        
               | mrtksn wrote:
               | > If you were a bit larger that equation would change
               | 
               | Right.
               | 
               | Can you please stop saving smaller developers from Apple?
               | Thanks!
               | 
               | PS: You maybe need some homework too. Essentially, Stripe
               | etc. doesn't handle anything else that processing your
               | payments(Maybe that changed or will change in the
               | future). They have list of countries that they support
               | and links to the governing bodies, you are on your own to
               | figure out how to sell in these countries. There are some
               | companies that handle stuff like that but you don't
               | simply pay 99$/year and start using them, there are also
               | publishers that will do it for you but they are much much
               | more predatory and restrictive that Apple. So please, if
               | you have something that you know say it, instead of
               | passive aggressively attacking my character. If you are
               | business genius you say you are, it would be much nicer
               | of you to share some of that with those who know less
               | instead of throwing generalised assumption and saying
               | things like "go do your homework".
        
               | jacquesm wrote:
               | Nobody said that you can't do business with Apple in any
               | way that you want.
               | 
               | Your arguments in this thread are based on some kind of
               | extrapolation that is not warranted.
               | 
               | As for what Stripe and other PSPs do: I'm intimately
               | familiar with that stuff. You are free to do your own
               | marketing/sales/payment processing/whatever but you
               | should not be forced to deal with any particular party,
               | including Apple at some price that they set.
               | 
               | Note that if Apple would charge regular PSP fees we
               | probably would not be having this discussion and _you_
               | would be making more money.
        
               | mrtksn wrote:
               | I'm glad that you are intimately knowledgable but your
               | original claim was that %30 is a bad deal and large
               | corporations are in a mission to help small developers
               | agains Apple.
               | 
               | Then when I press you to show some calculation, you admit
               | that you actually need to be "a bit bigger than a small".
               | Essentially, what you say that all you need is a dream
               | and a few million dollars in the bank. Thanks, great
               | advice.
               | 
               | You keep repeating that you know a lot and I am sure you
               | do but your arguments fall short of actual information.
               | You keep saying things that "you need to learn" which I
               | tolerate and try to be respectful despite I really don't
               | enjoy being patronised.
               | 
               | Besides, I want to note that the real issue for me is not
               | the %30 or %15 or whatever cut Apple takes. The real
               | issue is that Apple/Google/Amazon or any other company
               | can cut you off if they want. At this point, I think
               | these services must be regulated like utility, i.e.
               | businesses that depend on these must be guaranteed to be
               | treated equally and fairly. Apple is has done fine for
               | the most part but IMHO what we need is rights, not all
               | that BS about making Apple change their software to
               | accommodate something.
        
               | jacquesm wrote:
               | 30% is a bad deal because it was a one-sided affair.
               | 
               | Let's see your reaction when they crank it up to 50%, 70%
               | or even more. Your arguments are going to be exactly the
               | same, right?
               | 
               | > At this point, I think these services must be regulated
               | like utility, i.e. businesses that depend on these must
               | be guaranteed to be treated equally and fairly.
               | 
               | This is _exactly_ the crux of this court case. Apple is
               | abusing its position, it has turned itself into a utility
               | and there is no way to opt out and switch to another
               | utility.
        
               | emteycz wrote:
               | There isn't going to be any reaction because they can't
               | crank it up to 50 or 70 percent because developers would
               | leave. Which means it's not a monopoly.
        
               | Jensson wrote:
               | Developers wouldn't leave, the apple app store generates
               | so much revenue that it would be much more profitable
               | than android even if they lost half of it. What would
               | happen is that governments all over the world would
               | quickly rush to regulate Apples power away, that is what
               | Apple is worried about and why they lowered it for small
               | developers to 15% already, they aren't worried about
               | competition here.
        
               | tsimionescu wrote:
               | Do you think that a 99% tax/commission would be fine? If
               | not, how do you decide that 99% breaks the business, but
               | 30% is fine?
               | 
               | The answer of course is that different businesses have
               | different margins. For some, even paying 99% commission
               | to Apple would not break the business, as they have such
               | great margins that even getting 1% of each sale would
               | still leave them profitable. For others, even a 1%
               | commission is too much, as they have such low margins
               | even losing 1% of sales price makes them unprofitable.
               | 
               | For any set price, some business models are excluded from
               | the App Store, for better or for worse.
        
           | harshitaneja wrote:
           | This 15% happened after all the outrage. Yes, all these mega
           | corps don't care about the little guy but apple allowing
           | third party options doesn't take away from their ability to
           | continue to provide the services to developers who see value
           | in apple's payment services.
        
             | mrtksn wrote:
             | Are you a developer? Can I see your apps? I'm curios about
             | your business model where selling coins or unlocking
             | premium features at %30 commission instead of %15 breaks
             | your business to the point that incorporating in 175
             | countries is more desirable.
        
               | harshitaneja wrote:
               | I develop. No, 30% doesn't break my business majorly
               | because my business model is not around app sales but I
               | agree with your point that for most 15 and 30 won't break
               | the business. But you are presenting a false dichotomy.
               | Why are we assuming if apple doesn't offer these
               | services, a third party won't as well? And I am not
               | proposing that apple stop offering its payment and other
               | distribution services but rather that third parties be
               | allowed to do the same.
        
               | mrtksn wrote:
               | There's nothing desirable in dealing with multiple 3rd
               | parties to reach your customers instead of one that is
               | essentially providing equal service at equal price to
               | (almost)everyone.
        
               | harshitaneja wrote:
               | And I am not advocating that any one takes away that from
               | you, just for us to have a choice.
        
               | pritambaral wrote:
               | > providing ... service
               | 
               | The mafia also provides services. You don't just pay them
               | and get nothing in return. Of course, there, as here, you
               | really have no choice but to pay; and to pay ridiculously
               | inflated rates.
               | 
               | > ... at equal price
               | 
               | Not true. Apple's price is zero. Sucks if you're
               | competing with them, then. Maybe we should all be
               | thankful Apple at-least let's you compete, even if with a
               | handicap. Unlike the mafia.
        
           | albertopv wrote:
           | So why is Apple so scared by competition? Why denying other
           | payment services at all?
        
             | mrtksn wrote:
             | > Apple so scared by competition
             | 
             | That's a loaded question.
             | 
             | I don't think they are scared, it's just easier for them to
             | collect their cut when the payments flow through their
             | systems. It also enables them to do really good customer
             | service and this helps them sell more iDevices. Purchasing,
             | refunds, cancellations are all handled by Apple and are
             | accessible from a single place and that makes for a superb
             | customer experience.
             | 
             | Let's not forget that companies are not charities. When
             | they are charities, they register as such.
        
           | tsimionescu wrote:
           | You make no sense. _No one_ is arguing Apple should stop
           | offering this service to developers.
           | 
           | However, Apple shouldn't be allowed to monopolize the market
           | for mobile apps (or "oligopolize" it together with Google, if
           | you want to be extremely pedantic). There should be other
           | _options_ for these types of services.
           | 
           | If Apple offers the best case for your business: Great! Keep
           | using Apple. If someone else's business doesn't need
           | availability in 175 countries (say, they are a taxi app
           | operating in one city), perhaps they should be able to choose
           | some other payment processor who won't demand 30% of every
           | in-app purchase for offering _them_ the exact same service as
           | Stripe.
        
             | hraedon wrote:
             | The problem is that they _aren 't_ offering the same
             | service. The payment processor is not maintaining the
             | ecosystem or doing anything outside of the relatively
             | narrow scope of accepting payments and maybe dealing with
             | taxes.
             | 
             | Even if you think Apple's (and Google's, and Microsoft's,
             | and so on) cut is too high, the idea that the entirety or
             | even the bulk of the value that they offer is strictly in
             | facilitating transactions is incorrect.
        
         | MilaM wrote:
         | This is a valid argument. But it's not like devs are completely
         | on their own outside of the App Store. There are at least two
         | other companies that provide payment and licensing services to
         | software vendors like Fastspring or Paddle. I only know these
         | companies as a buyer software licenses. Never had any problems
         | with them. But I can't say how it is to deal with them as a
         | software vendor.
        
           | Aulig wrote:
           | I use Paddle as a seller and it's an amazing experience. No
           | VAT hassle (both paying it and displaying prices correctly on
           | my website) and super easy integration on my website
           | (comparable to Stripe). Plus you get a bunch of payment
           | methods at once (Apple Pay, Paypal, credit card, bank
           | transfer,...). A great experience all around for a fair price
           | (5%).
        
           | HatchedLake721 wrote:
           | What Paddle and Fastspring offer is what Apple values at 3%
           | of the 30% fee.
           | 
           | This is about access to marketplace with 1+ billion people
           | for a vertically integrated device that cost billions of R&D
           | money.
           | 
           | Same as if you want your SaaS to be on Shopify or Salesforce
           | store. You'll pay a cut to be there. Because Shopify and
           | Salesforce offer you access to their customers to install
           | your app in 1 click.
        
       | danuker wrote:
       | As a consumer I do not want to enter an ecosystem where 30% of
       | any software entering my device is leeched away into by an ever-
       | increasing monopoly.
       | 
       | As such, I use second-hand Android devices with Lineage OS, and
       | get my software from F-Droid.
        
         | homarp wrote:
         | is your bank app on F-Droid?
        
           | xxs wrote:
           | I use a standard web for banking. Works on anything.
        
             | YaBomm wrote:
        
           | sofixa wrote:
           | It probably isn't, but bank apps usually are free so it
           | doesn't matter.
        
             | YXNjaGVyZWdlbgo wrote:
             | Most bank apps don't work properly anymore on rooted phones
             | or custom roms.
        
               | bmicraft wrote:
               | I didn't have a problem with them since Magisk got so
               | good at hiding itself which has been at least 3 years
        
               | gkbrk wrote:
               | Sounds like a job for regulations if an essential service
               | like banking can keep users out on such arbitrary terms.
               | 
               | I think only one of the banking apps I use check for
               | rooted phones, and it only uses that to warn the user
               | once on app install and never again.
        
               | YXNjaGVyZWdlbgo wrote:
               | Is it just a warning? Mine explicitly teels me that if
               | anything happens to the bank account they won't be liable
               | because I used the app on a rooted phone.
        
               | viktorcode wrote:
               | Regulators can't force banks to provide service in an
               | unsafe environment, which a rooted phone essentially is.
        
               | kevincox wrote:
               | s/don't work properly anymore/refuse to run on/
        
               | danuker wrote:
               | Indeed. They want to correlate the user through their
               | Google account.
        
           | danuker wrote:
           | No. I only use web banking.
        
       | NicoJuicy wrote:
       | Oh well, they will claim you can use pwa's as recently announced
       | in 2007.
       | 
       | https://en.m.wikipedia.org/wiki/Progressive_web_application
       | 
       | No surprise here. They will literally block/slowdown progress
       | every way they can.
        
         | jacquesm wrote:
         | Courts are not amused by such tricks.
        
           | NicoJuicy wrote:
           | But apple isn't a monopoly since you can add a website to
           | your start screen.
           | 
           | We are just behind on features and it's a "highly technical
           | issue"
           | 
           | ;)
        
       | jshen wrote:
       | I've been an Apple fan for a very long time, but I bought my
       | first windows laptop ever this past year because of the direction
       | Apple has been going with things like this. I really wish the
       | alternatives to iPhones, Apple watches, and tvOS weren't so much
       | worse.
        
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       (page generated 2022-02-04 23:00 UTC)