New way:
_______________________
What goes in the blank? How does Apple make money from the App Store?
It isn't regulators' job to find a business model for Apple. They inserted themselves as a middleman, and now that's being put into question.
New way:
_______________________
What goes in the blank? How does Apple make money from the App Store?
It isn't regulators' job to find a business model for Apple. They inserted themselves as a middleman, and now that's being put into question.
Well... Apple is also the firstman since they provide the platform. There wouldn't be an iOS App Store if Apple hadn't made it.
Or iOS period.![]()
So getting back to my earlier question... if Apple refuses to change their business model enough to suit the regulators... will the regulators force Apple to change?
macOS didn't need an App Store for the majority of its existence.
And, again, there are benefits to having an App Store. But if Apple creates one, they need to defend it. They need to explain not only why this is a better model than simply downloading an app from the web, then running it (which for many people is a model that works just fine), but also why it's better the consumer not to even have that option.
Yes, of course.
The App Store works exactly how Apple wants it to.
It seems weird for outside entities to come in and demand that they do something different.
If Apple taking a commission is so wrong... why wasn't it snuffed out in 2008-2009?
Seems kinda Johnny Come Lately to say "yeah we don't like what you're doing... change it..."
But it doesn't work how regulators want it to.![]()
This is a very weird take.
How. Do. They. Want. It. To. Work?
Make a guess.
No commissions? Higher yearly developer application fees? Sideloading? Anything?
Not really... the App Store worked one way for 13 years.
And now it's suddenly "do it differently"
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Seems you need to find other apps then. I mean, the curated walled garden (App Store) exists on your MacBook, and it has apps for many things.Yes, this is the world I live in with my Macbook, apps exist exclusively outside the Mac app store so if I want/need them I am forced to provide all my info and financials to god knows what crappy processor and crappy customer service.
It sounds like they need to come up with an entirely new business model if they are no longer allowed to make a commission.
Gently is indeed the keyword
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Who is gaslighting who?Warning … gaslight.
That's your opinion.Comparing physical retail to digital retail is like comparing Pages / Word with a Typewriter … Pages / Word is no Typewriter so shouldn’t be judged as sharing a baseline. Much less pricing models.
You're entire argument is a strawman based on the above.The fact is the pricing model of digital retail stores have been inspired by retail … like probably the first word processors ... naturally. The current situation might be an understandable phenomena … early ages of digital app retail … yet it needs to evolve has fast as profits. Because ones profit, is someone else loss, especially at a massive scale as it is happening.
We differ in opinion on the above.If a business with 2M revenue a year had to pay 600k in “office”/hosting rent just would be moving offices pretty fast … unless there are very high lock in costs and …
Of course they should. But they should not be able to condition others to the point of indirect control.
Sure, there should always be some regulation for physical and digital stores selling assets they didn't create. But not what you propose.There should be regulations that keep balance in check for the sake of the general population ... in a capitalistic democracy I mean.
If you buy a 'Vette and you mod the vette with specific parts and you go to sell the 'vette and buy a Honda Accord, those parts you bought for the 'vette will no longer fit. Is that what you are getting to?If such thing was standard it would be illegal … akin to price fixing. Now the reality is there are digital retail App stores that take as much as 5% .. or even less ... TODAY ... just not in iOS down to the policy maker. Oh, and that don’t charge date arrangements
Maybe you aren’t familiar with the concept. But usually is applied when there is a no minor cost to change suppliers.
Let me try and make a drawing. If want to buy an apple (the fruit) you can get it from Joe in the corner, in the local market, supermarket, heck you can even to the producer tree and get one. Meaning the cost of changing suppliers if there is one is negligible. You don’t like one, change to another … and you still get the fruit you want .. no cost of change. So supplier compete for quality of service ... that includes pricing.
Now, if you move out of iOS to change App Stores … means selling all your devices, leaving your game / App licenses behind, … and many more losses. Meaning there are significant short term costs. This for customers. For digital suppliers means leaving 50% of their customers behind ready to be grabbed by competitors ... maybe even Apple
Hey, lock in is not illegal … in fact I don’t mind … successfull ecosystems naturally create gravity. It’s not particular to Apple / iOS … happens with Windows …
Just making sure you understand the term when used.![]()
It's a distinction that has so far not been challenged and won in a court of law.That doesn’t mean anything, just an arbitrary distinction apple recently made. Netflix still had to remove all references to their website to signup to circumvent apples fees. Apple might even be forced to remove fees for competing apps such as mail, Streaming music, tv etc
We will see.Irrelevant to EU
Still irrelevant as this is EU.
In the same way Costco is a “middleman?” In the US it was validated by the court that apple is entitled to collect on use of its ip. So you are correct in that it’s not the regulators job to determine how apple will collect. But I don’t know if that notion is valid here. We will see.It isn't regulators' job to find a business model for Apple. They inserted themselves as a middleman, and now that's being put into question.
Why would apple need come up with a new business model. They might need to just be allowed to take commission on first sales like 100% of physical stores do it and not be allowed to collect commission on out of store sales.New way:
_______________________
What goes in the blank? How does Apple make money from the App Store?
It sounds like they need to come up with an entirely new business model if they are no longer allowed to make a commission.
Why do you always bring us court cases when they have no impact or relevance?In the same way Costco is a “middleman?” In the US it was validated by the court that apple is entitled to collect on use of its ip. So you are correct in that it’s not the regulators job to determine how apple will collect. But I don’t know if that notion is valid here. We will see.
Because it’s relevant in the US and I suspect in other countries as well.[... ]
Why do you always bring us court cases when they have no impact or relevance?
Sure, you can try to argue it, but the app is execution in apples servers using apples ip.And it can be argued it’s not apples IP after first sale is completed.
Seems like splitting hairs to make a use case.If apple can’t take a cut of advertising profits on free apps and target can’t take a cut of apples profits selling iCloud subscription on sold iPhones, then why should apple be allowed to do it?
Well fortunately they aren’t relevant in other jurisdictions. Difrent regulatory mindset, goals and legal systems. That is why EU forced Microsoft to separate internet explorer from windows installations, but USA didn’t.Because it’s relevant in the US and I suspect in other countries as well.
That’s only when the user buys it for the first time. Netflix doesn’t execute on apple servers when you steam movies. Angry birds doesn’t need apple servers or IP to play. Angry birds could have their own website where you buy addons or skins for the game just like Netflix have a webpage for you to subscribe.Sure, you can try to argue it, but the app is execution in apples servers using apples ip.
Apple is the one splitting hares, and still target can’t demand a cut but apple can for some arbitrary reason.Seems like splitting hairs to make a use case.
We’ll see. We don’t yet know the ending.Well fortunately they aren’t relevant in other jurisdictions. Difrent regulatory mindset, goals and legal systems. That is why EU forced Microsoft to separate internet explorer from windows installations, but USA didn’t.
In your opinion. Netflix is a reader app anyway. As far as angry birds, it’s true if you are playing from a website, but if the game is launched from an iPhone, it’s not true.That’s only when the user buys it for the first time. Netflix doesn’t execute on apple servers when you steam movies. Angry birds doesn’t need apple servers or IP to play. Angry birds could have their own website where you buy addons or skins for the game just like Netflix have a webpage for you to subscribe.
It’s apples iOS store, their creation. As long as they are not running afoul of the law, they are as free to split the electron as you are.Apple is the one splitting hares, and still target can’t demand a cut but apple can for some arbitrary reason.
That's your opinion.
Sounds doubtful
That has nothing to do with the App Store. You can’t argue that iPhone and MacBooks should be payed by the App Store fees
Same place as before, subsidizing the cost with hardware sales when the store wasn’t profitable
I agree, but that doesn’t mean it should be run to anyones specs except apples (keeping within the law of course)That is not an opinion. It is actually common practice in a matured context. It’s time for App Store like businesses maturity[…]
In your opinion. Netflix is a reader app anyway. As far as angry birds, it’s true if you are playing from a website, but if the game is launched from an iPhone, it’s not true.
Even so, if discussing recurring commissions on IAP, in the US it is still legal.Yes it is. Apps aren't streamed from the App Store. They get downloaded once, then don't need the App Store again, unless you use Apple's APIs to fetch additional content from there.
It’s already been judged that the iPhone and all its content is owned by the private customer who payed for it, not apple. So it’s actually launched from a users device. Whatever apple writes in their EULA is null and void under EU jurisdiction.We’ll see. We don’t yet know the ending.
In your opinion. Netflix is a reader app anyway. As far as angry birds, it’s true if you are playing from a website, but if the game is launched from an iPhone, it’s not true.
Well not for long as EU regulators is coming for them for running afoul of the law.It’s apples iOS store, their creation. As long as they are not running afoul of the law, they are as free to split the electron as you are.
Why do I have a feeling apples legal staff has a better handle on this than MR posters? I can’t argue for or against, only discuss what I know that’s been made public it’s respect to the US.It’s already been judged that the iPhone and all its content is owned by the private customer who payed for it, not apple. So it’s actually launched from a users device. Whatever apple writes in their EULA is null and void under EU jurisdiction.
Sure, we’ll see. I’ll wait for your post saying these new laws are here.Well not for long as EU regulators is coming for them for running afoul of the law.
Even new laws are drafted.
It’s on these reoccurring commissions the Netherlands and EU have a problem with. And that apple should allow developers collect payments without their involvement.Even so, if discussing recurring commissions on IAP, in the US it is still legal.