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The circle I can’t square is the idea that Apple should be running the App Store at a loss (subsidising it from hardware sales etc) BUT there should also be competing app stores.

Competing App Stores cannot exist if they can’t undercut the Apple App Store on price. If the cost to a developer of putting an app in the Apple App Store is zero, there’s no reason for any other App Store to exist, and the competition the DMA so dearly seems to want to foster never materialises.
 
Apple is a $3T company. Their operating profit last quarter was almost $30B. The 30% they collect from people buying coins and gems inside games is basically pure profit at this point. They do not need to engage in rent seeking to fund the App Store.

Apple is a for profit company and has a duty to shareholders to get the maximum value for its the shareholders. As long as the App Store has value for developers Apple should charge for access to it; just like nay other store.

In one of the Epic trials discovery included an email from Phil Schiller from 2011 suggesting that once the App Store had $1B in revenues Apple should think about reducing the commissions and keep it at that run rate. Imagine where Apple would be right now if Cook decided the company is making so much money off the App Store they can afford to reduce the commission to 10-15%. Of course he couldn’t do that because he promised Wall Street huge growth in ‘services’ to compensate for low to no hardware growth.

The real question is 'would consumers have benefited from lower prices?" When Apple dropped commisions to 15% for small dvelpoer, prices did not drop so the answer is no. In addition, subscriptions pay 15% after the first year, do consumers get a break on subscriptions after one year, again the answer is no.

Paying a nominal fee and having access to all the build tools, SDK's, performance and optimisation tooling, analytics, help forums, not to mention being able to distribute worldwide and not have to worry about payment platforms, currencies, load balanced distribution, etc. It's just worth it, people complaining now are either:

a. Too young to remember what it was like before.
b. Large companies, like Epic, who have the scale to adapt and make huge profits on such a move and know that people like me will need to use their services to sell apps. Its pure and simple greed, yet they make out they are trying to make things 'fairer' for people like me.

Great points. The App Store has removed many significant barriers to entry for small developers; and I fear the ultimate outcome may be beneficial to the big guys at the expense of the smaller ones.

Make no mistake, this fight isn't about helping the consumer or small developer but about fighting over the serious money, small developers will just be collateral damage.


And subsequently EU just slaps back that they have no obligation to tell apple what fee they can take, but apple must actualy show why the take it xD

Having worked in a highly regulated environment, it is normal to work with the regulators to ensure compliance and clarify expectations. The EU playing 'bring me a rock' is not helpful, and we can argue ad-infinitum over what Apple's behavior represents, but in the end if the EU would say "you need to do X,' things could get done a lot more efficiently and with a lot less arguing.
 
The circle I can’t square is the idea that Apple should be running the App Store at a loss (subsidising it from hardware sales etc) BUT there should also be competing app stores.

Competing App Stores cannot exist if they can’t undercut the Apple App Store on price. If the cost to a developer of putting an app in the Apple App Store is zero, there’s no reason for any other App Store to exist, and the competition the DMA so dearly seems to want to foster never materialises.

Exactly. And if they did this the EU would come at Apple because it's "unfair competition" that Apple is able to subsidize its App Store with hardware sales.

Heads: fine Apple. Tails: Fine Apple.
 
Exactly. And if they did this the EU would come fining Apple because "it's unfair competition" that Apple subsidizes its App Store with hardware sales. Heads: fine Apple Tails: Fine Apple.

I suspect, if Apple cut its commission to below that of what competing App Stores had to charge to survive the competing stores would cry 'foul.' I suspect the 15% Apple charges small developers is not enough to keep competing stores viable unless they are backed by a large corporation who can afford to take the loss just to sell their app outside of Apple's eco-system; or can attract big developers who will cover the costs of hosting the small ones (unlikely, IMHO). But then, other than to poke at Apple there'd be no reason to open a store instead of just offering a download.

Frankly, allowing sideloading (or whatever you want to call it) would give Apple a lot more flexibility in not accepting apps, or charging fees, because they now have an alternate way to reach customers. You don't like the App Store's rules? Roll your own distribution system and payment acceptance method.
 
Our president should instruct congress to devise equivalent “gatekeeper” over regulations that target eu companies.
I guess so if they have an equivalent market share in the USA but I’m not aware that they do.
 
Source? Keep in mind that the EU is only part of Apple's European segment (Europe, Africa, India, and the Middle East). I'd imagine that China and Asia and maybe even the rest of of their European segment is bigger.

That said, they're not pulling out of the EU.
I’m afraid I can’t remember where I read that. You can check apple’s financials each quarter though.

True the EU is only a part of EMEA but it’s pretty obvious that they are a huge chunk of any revenue attributed to that region.

And Apple’s market share is falling in china. I’m not sure of how it is in India.

At any rate the EU is full of citizens with similar spending power to those in the USA - and there’s around half a billion citizens (total population).
 
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Their decision and unprecedented fine came after the Commission continuously moved the goalposts on compliance, and repeatedly blocked Apple's months-long efforts to implement a new solution. The decision is bad for innovation, bad for competition, bad for our products, and bad for users.

Hmm, no. The EU set pretty clear goalposts and Apple looked at every pebble while crossing that field saying "but I like this goalpost instead"

They claim it's bad for competition yet this is going from a market of "1" which by definition is 0 competition to a market of "1+N" which is, by definition, allowing competition.
 
Apple has become boring, lazy, arrogant and complacent under Tim Cook.

Instead of forcing iPhone users to use the AppStore they should highlight the reasons why iPhone users might chose to use the official AppStore.

Forcing users to do anything will inevitably lead to resentment.
That obviously hasn’t been the case as apples earnings are stellar. Do people feel forced? My opinion no save for some MR posters. Nor do a majority of people have this type of critique of apple of boring , lazy arrogant complacent. That’s MR making Apple anthropomorphic.
 
I’m afraid I can’t remember where I read that. You can check apple’s financials each quarter though.
Apple doesn't break out the EU in their quarterly financials. There was statement that the EU was 7% of App Store revenue a while ago. Assuming that percentage holds across Apple's products, that would put the EU well behind China.

True the EU is only a part of EMEA but it’s pretty obvious that they are a huge chunk of any revenue attributed to that region.
Sure, but that doesn't make the EU Apple's second biggest market in the world.
 
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Apple fines are the EU's main source of income. Gotta get as much as they can. Set an example.

Stop with the BS. Fines, in total, make up 1-5% of yearly income.

EU funding, from highest to lowest.

  1. Member State Contributions: This is the largest source of revenue. Member states contribute based on their Gross National Income (GNI). Each country pays a percentage of its GNI, which is adjusted annually.
  2. Customs Duties: The EU collects customs duties on imports from outside the EU. These duties are collected by the member states and transferred to the EU budget, though a small portion is kept by the member states to cover collection costs.
  3. Value Added Tax (VAT) Contributions: A small percentage of each member state’s VAT revenue goes to the EU budget. This is standardized across the EU but takes into account the economic disparities between member states.
  4. Other Sources: The EU also generates revenue from fines imposed on companies for violating EU laws (e.g., antitrust fines), surplus from previous years, and contributions from non-EU countries to specific programs.
 
It’s time for Apple to read the room and to realise that want they want for the App Store is now not au fait with how many governments and trading blocs view fair competition.

They can’t keep on skimming in this way - and that’s what it is - forever more.

I think they’re being very foolish in persisting in this as they’re burning a huge amount of bridges - both with govts and with developers.

Particularly as the smartphone era is starting to wane as we enter the AI era and Apple are more strategically weak than they have been since the 00s - even if this is not yet apparent.

what do you think AI is going to run on? one of those iPod shuffle devices worn on a necklace? 😂
 
Right in line with the objectives of a for profit company then. 👍
The point being it isn’t necessary for them to squeeze every penny possible from developers when they’re basically getting $20 billion free from Google? Just because you’re a for-profit company doesn’t mean your entire MO has to be extracting as much money as possible from people.
 
Holy cow somebody else gets it, I thought I was losing my mind

Forget the alternative AppStore nonsense I just want to sideload a damn IPA

This really needs to be something that's allowed for those that want it, even if gated behind a toggle and reboot and/or entire other "mode" to have your device in.
 
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Apple is a for profit company and has a duty to shareholders to get the maximum value for its the shareholders. As long as the App Store has value for developers Apple should charge for access to it; just like nay other store.


The real question is 'would consumers have benefited from lower prices?" When Apple dropped commisions to 15% for small dvelpoer, prices did not drop so the answer is no. In addition, subscriptions pay 15% after the first year, do consumers get a break on subscriptions after one year, again the answer is no.
Developers aren’t consumers? Do we know that most/all developers were charging 30% more? And they’re still charging the same price?
 
The circle I can’t square is the idea that Apple should be running the App Store at a loss (subsidising it from hardware sales etc) BUT there should also be competing app stores.

Competing App Stores cannot exist if they can’t undercut the Apple App Store on price. If the cost to a developer of putting an app in the Apple App Store is zero, there’s no reason for any other App Store to exist, and the competition the DMA so dearly seems to want to foster never materialises.
Who here is saying Apple should be running the App Store at a loss? The margins on the App Store are massive. It’s a major profit center for the company now.
 
The circle I can’t square is the idea that Apple should be running the App Store at a loss (subsidising it from hardware sales etc) BUT there should also be competing app stores.

Competing App Stores cannot exist if they can’t undercut the Apple App Store on price. If the cost to a developer of putting an app in the Apple App Store is zero, there’s no reason for any other App Store to exist, and the competition the DMA so dearly seems to want to foster never materialises.
Excellent point. If Apple had implemented it at a loss, the argument then would just be that they are abusing their position to crowd out competition. That is the way it works when you are successful. The leaches of the world find an argument and try to get a pound of flesh - for the "little guy" of course.
 
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