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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?

But before they do that... can the regulators fix the cable industry? I'm paying far too much for cable and internet.
 
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. :)

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.

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?

Yes, of course.
 
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.

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..."
 
The App Store works exactly how Apple wants it to.

But it doesn't work how regulators want it to. :)

It seems weird for outside entities to come in and demand that they do something different.

No, it seems like what antitrust is designed to do.

If Apple taking a commission is so wrong... why wasn't it snuffed out in 2008-2009?

Because the smartphone market was nowhere near as massive and essential at the time.

Seems kinda Johnny Come Lately to say "yeah we don't like what you're doing... change it..."

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?

I don't care. They don't care. That's for Apple to figure out. Or not.

An antitrust agency's job isn't to propose an alternative business model.

Not really... the App Store worked one way for 13 years.

And now it's suddenly "do it differently"

:p

"We successfully trafficked drugs for years… and now, all of the sudden, the state comes in? Come on."
 
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.
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.

Or… You may need to find another operating system for your MacBook. A one stop shop, where you can get all the apps you want, safely and securely, from one source.

It‘s not as if there‘s no choice. Regarding the operating system for your computer, you even have about as much choice as a mobile app developer has in deciding on which OS or app marketplace he distribute his apps.

;)
 
It sounds like they need to come up with an entirely new business model if they are no longer allowed to make a commission.

Who is arguing not having a commission over software program sale, payment and distribution?

I think there is a distinction between this and charging a commission over a dating arrangement or movie or tv show view … don’t you think?

Apple is using the power it has to control the first option to control the second. While the App Store does nothing to promote or sell date arrangement if not for the mandatory in app payment by policy. Dating is of course a metaphor to a wider gaslighting practice called mandatory in-app-purchase / cash register … just using it considering the recent Dutch Gov vs Apple event.

I mean, is the App Store promoting dates or selling dating arrangements? If not, what is the common sense basis for such a charge? What about selling music or TV shows, tutoring lessons, remote gym sessions? There is no common sense reasoning to this practice but the fact it controls what goes in 50% of Americans pockets … iPockets. Now that is power … leverage … to even be able to impose charges for things that one does not deliver.
 
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Gently is indeed the keyword :)
;)

Warning … gaslight.
Who is gaslighting who?

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.
That's your opinion.
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.
You're entire argument is a strawman based 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.
We differ in opinion on the above.
There should be regulations that keep balance in check for the sake of the general population ... in a capitalistic democracy I mean.
Sure, there should always be some regulation for physical and digital stores selling assets they didn't create. But not what you propose.
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. :)
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?
 
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
It's a distinction that has so far not been challenged and won in a court of law.
Irrelevant to EU

Still irrelevant as this is EU.
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.
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.
 
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 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.
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.
Why do you always bring us court cases when they have no impact or relevance?

And it can be argued it’s not apples IP after first sale is completed.

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?
 
[... ]

Why do you always bring us court cases when they have no impact or relevance?
Because it’s relevant in the US and I suspect in other countries as well.
And it can be argued it’s not apples IP after first sale is completed.
Sure, you can try to argue it, but the app is execution in apples servers using apples ip.
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?
Seems like splitting hairs to make a use case.
 
Because it’s relevant in the US and I suspect in other countries as well.
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.
Sure, you can try to argue it, but the app is execution in apples servers using apples ip.
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.
Seems like splitting hairs to make a use case.
Apple is the one splitting hares, and still target can’t demand a cut but apple can for some arbitrary reason.
 
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.
We’ll see. We don’t yet know the ending.
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.
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.
Apple is the one splitting hares, and still target can’t demand a cut but apple can for some arbitrary reason.
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.
 
That's your opinion.

That is not an opinion. It is actually common practice in a matured context. It’s time for App Store like businesses maturity and stop with comparing with physical retail to pump the pricing of the digital up …

Apple now even offers digital typewriters for free … Pages. That is how much the digital medium shaped things entirely differently to the physical medium. An example of digital scaling compared to the physical shaping the value of things entirely differently.

If the business of retailing typewriters were comparable to retailing Pages … an app, giving out the second for free would never have any sort of business feasibility … yet it has. So logic would say that using physical retail practices to justify App Store practices is nothing but an elusive logic if not nonsensical.
 
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Sounds doubtful

You doubt that Apple pays anyone at all to provide marketing for the app store? Seriously?

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

So on one hand you argue that Apple shouldn't subsidize hardware with app store $$ but in the next breath you say Apple should subsidize the store via hardware $$, besides being hypocritical isn't it 6 of one, half dozen of the other?
 
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.

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.
 
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.
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.
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.
Well not for long as EU regulators is coming for them for running afoul of the law.
Even new laws are drafted.
 
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.
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.
Well not for long as EU regulators is coming for them for running afoul of the law.
Even new laws are drafted.
Sure, we’ll see. I’ll wait for your post saying these new laws are here.
 
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