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Apple Hit With Multibillion-Euro Lawsuit for 'Overcharging' App Store Users
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Apple should do a cost analysis on doing business in Europe at this point. Paying legal fees and damages on these frivolous suits has to be cutting deep into the profit margins of selling G&S in these countries. Would love to see them cut bait and leave.
I go to Aldi to buy Apples (no pun intended) for 2,99€. I should sue Aldi because I want to eat; plus Aldi is forcing producers to charge more, because Aldi has put a whatever percentage on the price? Absurdity!
You do realize Apple makes billions in Europe, it's not a market that anybody would easily leave. It's not a "tiny place that is not relevant".
MacRumors and in general internet comments are full of whiners and exaggerations. All the devs I know are super happy and are pretty grateful for App Store.
Wait, what? The markup at a supermarket has NOTHING to do with farmers. Markup at a supermarket covers their expenses (location, staff, utilities, equipment, etc.) and their profit margin. Farmers etc. account for their cost of goods.
Stop acting like the iOS app store is a "single web page" and nothing else. Like any other retailer Apple builds and maintains the store which has costs associated with it like physical workspaces, staff, equipment, servers, etc. and they deserve to make a profit.
Most apps are FREE meaning the only way to make any money from the distribution of that app is through a commission on IAP. Without a commission on IAP how exactly should Apple cover their costs and make a profit?
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None. They're trying to invent laws in order for Apple to be breaking them
What? As a photographer, every business I do dealings with, every platform I want to advertise on, every social platform I want to help handle my clients, I need to pay for that. I pass this cost off to my clients built in to my prices. Every single other business operates like this. No one is forcing anyone to do anything here. It's business. Don't like it? Don't buy it.
Sure they will, only a small matter 0f 450m people or so. Chump change.
Oh please. All this says to me is: Apple haters gonna hate, logic and history be damned.
Ignoring the fact that the commission Apple charges is actually the same as other digital stores... Anyone who has any knowledge at all about Apple's history knows that the phrase "Apple tax" long predates the entire existence of the iPhone, (let alone the App Store) and refers to the long standing notion that Apple consistently sells its wares at higher price points than most of their competitors -- and somehow, successfully stays in business anyway, frequently beating out their competitors in several market analysis statistics. This could possibly be for various reasons, ranging from the opinion that Apple products are considered an "elitist status symbol" that only the rich ever buy, to the opinion that Apple's wares are just that much better, and therefore worth the premium price.
This "Foundation" is just looking for an easy payday. Just like every other lawsuit against Apple, these days.
“Consumer protection” groups are todays ambulance chasers
You clearly don't have a clue how much those things actually cost, and are ignoring the fact that they are forced on developers who have no other alternative.
Android is supposedly a wonderful platform that has dominant market share, they can write for that platform right? Sounds like an alternative to me. If their app is so great and exclusive to Android users will follow, if enough users follow Apple will change their practices, if not they won't.
Most apps are free meaning that the only avenue for Apple to make any money for their costs is through IAP commissions.
People seem to want to walk into a supermarket, take milk off the shelf, pay the supermarket nothing, go home and pay the milk manufacturer for a code to unlock the lid on the milk. How does the supermarket make a dime in this?
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Yup. For about $100/mo I have heating, cooling, water, electricity, and natural gas. I am not part of the "free stuff" generation.
As drastic as it sounds, if this stuff keeps adding up (thinking proposed EU anti-competitive laws) Apple may have to scale back what it is doing in the EU. Maybe just sell Mac and Apple TV?
Apple is facing a new multi-billion euro lawsuit out of The Netherlands that alleges the company overcharges users who purchase apps and in-app subscriptions through the App Store and accuses Apple of partaking in "market dominance" and "anti-competitive practices."
The foundation spearheading the lawsuit is the Consumer Competition Claims Foundation, which describes itself as "an independent non-profit foundation that is committed to protecting consumers against unfair commercial practices and violations of consumer law."
On its website, the foundation says that Apple, through its App Store policies, is overcharging users who pay for apps and in-app services, adding that users should "demand" refunds for purchases.
The foundation points to what is commonly referred to as the "Apple tax," a 15% or 30% commission that Apple takes for all digital purchases made on and through the App Store. The foundation says that the commission forces developers to increase prices for users. "iPhone and iPad owners pay the price for Apple's App-store abusive monopoly," the foundation states.
Bloomberg reports the foundation believes the lawsuit will lead to upwards of $5.5 billion in damages sought for all EU iPhone and iPad users who have made a purchase through Apple's App Store. On its website, the foundation asks customers to join their efforts to "hold Apple accountable."
The new lawsuit is one of several legal battles brewing for Apple in Europe. Apple continues to be fined by the Dutch consumer and markets authority for its failure to comply with a previous ruling, which allows for third-party payment methods for Dutch dating apps. The authority says that despite Apple's announcement and plan to let eligible developers use a third-party payment method for in-app purchases, Apple still fails to comply with the new ruling. Apple has been fined €50 million as a consequence.
Article Link: Apple Hit With Multi-Billion Euro Lawsuit for 'Overcharging' App Store Users
There used to be a time when developer software and compilers cost $$$. When Apple loses its ability to charge a fee to host software on its own store and development platform that it created and has huge value to developers, expect Apple to start charging for Xcode, individual app entitlements, etc. I don’t think anyone has thought this through. Apple could easily say to developers “you can develop apps for your own store, but you need to buy our side load development software and be vetted before you can buy it. Prices start at $10,000 per dev, per year.”
Except those are necessities where most folks have no choice but to buy them to survive. Big difference.
You mean like for Mac developers who don‘t sell their apps through the Mac App Store? Oh, wait…!
Last I checked, no one was forced to buy a phone or the apps on that phone? I know in certain areas of the states, you have to be on the grid in some areas, and you are forced to pay. A little different.
I have a creeping feeling the real issue is that Apple is not an EU company. Kind of like how the right leaning in the USA tend to decry government interference unless it is their comfort/income being incrouche. Then Uncle Sam can’t move fast enough.
Fortunately, when the EU Digital Markets Act is established and App Store competition is possible, such lawsuits will be history.
Exactly. People love to moan about pricing, but their actions betray them. I mean, obviously consumers wouldn't be disappointed if prices were lower, but if they truly thought the product or service wasn't worth it, they wouldn't open their wallet. And of course we're talking about non-essential goods/services (or essential ones where you have a choice).
What!?
Ok, first off, unfortunately, she would die. 2 million a week? 2 million a year and that’s still crazy.
It’s silly enough to compare apps to utilities and gas but to compare it to a life saving, imaginary, billion dollar, recurring treatment is just laughable.
All you’re doing is pointing out there are things in this world in the market with competition that are expensive.
I understand plenty regarding economics, but I will never understand how I, as a consumer, am at a disadvantage as long as I have android as an alternative.
Get the government to look into why my daughter’s cure is 2 million a week instead of why apple takes a 30% cut for providing the marketplace in which to sell products totaling MAYBE $50 a year for me.