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One thing I was always curious about and maybe it’s out there but I’ve never read it; what do companies like Spotify or Epic think would be fair to both them and Apple? What is their solution?
 
Is the market the individual brand or the smartphone industry? I personally would like to shop on Amazon but allow me to get redirected to other stores to actually purchase the product. Stop the Amazon tax. Start a fair competition coalition now!
It's a fair question, but I think the mobile platforms have become their own markets. When you're talking about web stores, you can easily buy a few things from Amazon, a few things from Target, something from Apple, something from Etsy. When you're talking about mobile platforms, most people are locked in because of the cost of a handset and monthly service plan, integration with other products and no desire to carry around multiple handsets. You could say "If you don't like the App Store terms you can buy apps from Google," but most people aren't going to carry one phone for apps, another for the camera, another for messaging, etc.

So I think this is more like the antimonopoly issues related to operating systems, like when Microsoft got in trouble for using its OS monopoly to privilege Internet Explorer. In this situation, it's not valid to say "consumers must like every part of the platform since they're using it." It's more like "consumers will tolerate some exploitative aspects of the platform because it's too costly to use multiple platforms."
 
You would make a good Apple lawyer
Thank you, I'll take that as a compliment. In a prior life I was, not for Apple, but still.
because what you have replied with has absolutly nothing to do with the argument Spotify is making about 'competition'.
It actually does, at least in the way it matters for now, in the legal and economic sense.

This:
Therefore, Apple is forcing Spotify customers away from the iOS app to use a desktop or laptop computer to pay for subscriptions and other purchases.
Confirms that there is competition, given that there's another way (currently even the only way) of making the transaction to procure Spotify subscriptions.

So just how exactly is this, in Apples own words 'intense competition'?
I'm not sure which of the two words are specifically bothering you, "intense" or "competition"?
Regardless, what constitutes "competition" has been explained ad nauseam by now, so I'll assume that's not the one that's causing contention.

"Intense" is a bit more up for debate as it pertains more or less to an opinion, but considering that almost all of Spotify's current iOS users have made the transaction directly through Spotify with negligent amounts left that transact through IAP, and that no future users can transact through IAP, I can see why one would consider that kind of competition "intense".

That said, I understand why the leading definition of competition is inconvenient for your (and Spotify for that matter), but I'd suggest skipping the messenger (me) and instead direct your ire to someone who can make a change, like your representatives. I for one would much appreciate that.

Especially considering that I have not voiced my personal opinions on the matter, rather I provided legal context and to a lesser extent, an economic context (derived from the testimony of the economic experts of both sides in the current Epic v Apple saga, some of which contributed to the definitions that the SCOTUS currently uses).

Hints of the lack of my own opinion can be found in the two parts quoted below.

Like it or not

If that's a logical way of looking at it, is a different question, in part being duked out in court as we speak.
 
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Apple does not allow any other payment system in it's app store, you either have to use Apple's payment system or not use the app store. Therefore for Apple to respond to Spotify's argument that Apple's app store payment system faces no competition with Apple responding with:-


Is very disingenuous because there is only one payment system in the app store and that payment system belongs to Apple so just how exactly is Apple facing 'intense competition' with it's payment system?
Great points.

Same thing Walmart does. I can't use ApplePay. No different. Their store, their rules. Hell, I have to pay cash when buying my Boba drinks. Can't use credit car. No choice. Retailer decides. Been like this forever.

I assume you mean you can't' use non Apple Pay system on their store. And, you don't mean Visa vs Apple Card. If yes, I agree, they could allow more than Apple Pay.
 
Honestly Tile trackers did sell very badly. when they were in Apple stores they were a very new product and not very compelling beyond its aspirations.

I think I sold 5 of them in the time they were available
 
Some pretty cogent arguments, based on broad legal principles that many folks may not be familiar with.

So it'll probably be ignored and/or misused by the vast majority of readers.
Thanks. But you're right, there are a bunch of risk that come with comments like that.

The obvious one would be that it's just too long for people to consider reading, to be honest.
Another one is that, unless you want to write an entire textbook on antitrust 101, you're left to sticking with generalizations and whatnot, so it'll simultaneously act as bait for people who'll want to "correct" you by pointing at exceptions.

My personal "favorite" is the psychoanalysis that sometimes follows and that doesn't distinguish between what I say on the basis of my understanding of the law and what opinions I hold as private person.

Either way, I didn't aim to provide an opinion on the case/issue at hand (did provide an opinion on the quality of analogies though).

Rather I was hoping to make clear what the big hurdles are that one needs to overcome when trying to bring an antitrust case against Apple, without necessarily saying who I think should prevail or how strong/weak the arguments so far are in an attempt to overcome them.

There are a bunch more, but those are a bit more in the fringes and the minutiae, and become more relevant once the bigger ones are overcome.
 
It's not really, when you take into account brick and mortar distribution, which, prior to the digital app stores was the primary means of software distribution. The cost of which is very high. Physical copies of software, packaging, shipping, and yes, marketing $$'s spent to place software in stores etc. So when you look at the overhead and expense eliminated by the digital market places, costs paid by the software developers, all Google, Apple and others did was replace this overhead, and arguably reduce the cost of getting software into the hands of customers. At the same time, they made it instantaneous.
Smart phone software was never sold at the brick and mortar stores. The apps for Symbian-based smart phones (Android and iOS predecessor) were sold/distributed online. Nokia Ovi store (just one of many) was announced in 2007 but there were other online distributors for Symbian and Windows Phone apps before that.
 
devs have been forced to care about my privacy, my battery life, my usability etc. Simply because Apple forced them to. Market forces didn’t make them do it because on other platforms like windows and android devs get away with trash all the time!
I'm sorry to break this to you, but most of the feedback I've gotten from Apple about my app submissions is either irrelevant to users, or protecting their own business. Apple changes the size requirements for app icons every couple years and I've spent hours resizing icons before a submission will go through. I have a cross-platform app and I once mentioned in the release notes that I had made an improvement to Android compatibility, and it was rejected because you're not allowed to mention the existence of another platform. I've had bug fix releases delayed because a reviewer noticed some random thing that wasn't affecting anyone. User protection doesn't seem to be a high priority in this system.
 
Government regulation/intervention should be reserved for protecting/benefiting consumers, not as a way for one company to take profits from another company.
Of course niche corner cases can be concocted where breaking the App Store’s lockdown on would benefit a tiny minority of consumers — but doing so would undeniably harm the vast, vast majority of iOS consumers that not only take no issue with the App Store but many are happy to pay a premium for the benefits it brings.
 
Sorry. Factually incorrect. Apple had no competing product when tiles were sold at Apple stores. You do remember that airbags were released only this year?
Are you sure about that? My cars have had air bags for years. 😉
 
Sorry, you are wrong. The iPhone as first released envisioned web apps as the vehicle for apps. Remember that Apple pioneered the market, and short of one firm selling smart phones, the market was fairly small. This proved ineffective and various versions of iOS enhanced the experience and met, sometimes led, sometimes followed competition from android.
The statement about app distribution, if you are honest, is that it created an electronic marketplace as opposed to buying cd with software installers in boxes from brick and mortar or via mail, some downloads were also available from independent developers. Distribution costs for the software were quite high
I had an electronic marketplace for apps on my Palm Pilot in the 1990s and same again for my Compaq iPaq in the early 2000s. This notion that Apple created the online App Store is totally false.
 
One thing I was always curious about and maybe it’s out there but I’ve never read it; what do companies like Spotify or Epic think would be fair to both them and Apple? What is their solution?
It doesn't matter what Spotify and Epic think is "fair" commission; it's not their store. But what if Spotify and Epic agree that 10% is a good charge? Should Apple be forced to drop it to 10%? Why?

Apple could show Spotify and Epic that their costs are, say, 15% (even though this is private information and they shouldn't have to), but Spotify and Epic will simply say, "Hey, it costs them 15%; we can run a store for 10%! You must drop it to 10%!" But they don't count all the costs involved in updating SDKs, developing Xcode etc., all the lawyers required for drafting contracts, the people in the various regions who have to determine when App Store prices have to change because of tax rate changes, the translators, the web developers, etc. and so on.

If Apple quantify the exact costs of the servers, bandwidth, employees, and everything else that's included, should Spotify and Epic be given the right to determine how much of a profit above that Apple are allowed to make? That's absolute BS.
 
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Apple are making contradictory statements in their replies. In one reply they stated that Tile is one of the "largest and most successful [developers] on the App Store". Then in a different reply they state that Tile products sold poorly in the Apple Store. Seems like Apple is making it up as they go along to defend themselves against the onslaught of complaints.
Or people just bought their Tile products elsewhere? The two are not mutually-exclusive.
 
I recall developers cheering when the 30% commission was announced. I'm sure Apple still has a recording of that keynote around somewhere, so you don't have to take my word for it.
The keynotes have always been packed with Apple employees to make sure a crowd cheer can be heard on the broadcast.
 
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It doesn't matter what Spotify and Epic think is "fair" commission; it's not their store. But what if Spotify and Epic agree that 10% is a good charge? Should Apple be forced to drop it to 10%? Why?

Apple could show Spotify and Epic that their costs are, say, 15% (even though this is private information and they shouldn't have to), but Spotify and Epic will simply say, "Hey, it costs them 15%; we can run a store for 10%! You must drop it to 10%!" But they don't count all the costs involved in updating SDKs, developing Xcode etc., all the lawyers required for drafting contracts, the people in the various regions who have to determine when App Store prices have to change because of tax rate changes, the translators, the web developers, etc. and so on.

If Apple quantify the exact costs of the servers, bandwidth, employees, and everything else that's included, should Spotify and Epic be given the right to determine how much of a profit above that Apple are allowed to make? That's absolute BS.
Epic is raking in several hundred million a month with annual revenue of several billion dollars. Maybe they should slash their prices to only cover their costs. I'm sure Epic would do that. LOL
 
And prior the app store there was no legitimate way to get apps on your phone. I don't see the logic in the argument that because Apple created its own store for its product is must also enable other stores on its product.
It was possible to download apps to your mobile phone long before the iPhone. Apple made it easier but they didn’t invent mobile apps.
 
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I'm sorry to break this to you, but most of the feedback I've gotten from Apple about my app submissions is either irrelevant to users, or protecting their own business. Apple changes the size requirements for app icons every couple years and I've spent hours resizing icons before a submission will go through. I have a cross-platform app and I once mentioned in the release notes that I had made an improvement to Android compatibility, and it was rejected because you're not allowed to mention the existence of another platform. I've had bug fix releases delayed because a reviewer noticed some random thing that wasn't affecting anyone. User protection doesn't seem to be a high priority in this system.
To be fair, most of what was mentioned is enforced on the OS level and you'd have to create quite a hot steaming pile of **** for iOS to not know what to do with your app other than to throw an EXC_RESOURCE or a crash with SIGKILL.
However if you get to the point that iOS can't properly manage your app, App Review is definitely going to notice. If not during the automated dynamic analysis that happens before human review, then because the reviewer notices the crash.

ATT is also an example of a system level enforcement of privacy. IDFV perhaps doesn't cover all forms of tracking, but it's the biggest and easiest way of doing so, hence so many ad-dependent tech corporations being so pissed about it. Other forms of tracking, some of which are tested out as we speak, are kept track of (no pun intended) by App Review team and enforced at a policy level, as per Federighi.

Other than that Apple provides tools(attached), information(attached) and education to devs to help them create apps that are cognizant of resources like battery life, that have a pleasant UX/UI and overall make for a good experience.


Maybe you just make great apps that don't need further feedback on those subjects?
That said, there are situations that warrant strict enforcement (by App Review or iOS) and there are situation that remain the responsibility of the dev.

The better indie devs seem to be obsessed by details and minutiae, evidenced by some of my indie friends with relatively popular apps that regularly obsess over minutiae like shaving off a millisecond here and there during a cold launch.
I personally have not done that yet, as I'm focussing on improving other stuff, but then again, I wouldn't consider myself one of the "better indie devs".
Apple are making contradictory statements in their replies. In one reply they stated that Tile is one of the "largest and most successful [developers] on the App Store". Then in a different reply they state that Tile products sold poorly in the Apple Store. Seems like Apple is making it up as they go along to defend themselves against the onslaught of complaints.
There's nothing contradictory about someone being successful in the App Store while also producing a product that is not successful in one particular retail store, the Apple Store.

Ben & Jerry's can be very successful in general, but your local gas station might not sell many tubs of Ben & Jerry's ice cream.

I personally have spent a lot of money at Apple Stores, but I can't recall the last time I purchased a 3rd party product at the Apple Store, if ever. My anecdotal experience is useless on it's own, but it could be that I'm not alone in that kind of behavior.
 

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Apple says that despite what the music streaming giant said during the hearing, it does not prohibit developers from informing users about the ability to purchase in-app purchases, such as subscriptions, elsewhere, such as on the web. Apple correlates this rule to its inability to, for example, place a storefront sign at a Verizon location informing customers to purchase an iPhone from Apple instead.
I'd say that's a very poor analogy. Apple doesn't operate the Verizon store, so it has no right to put ads up in the Verizon store.

The App Store is more like a mall. When you walk into a store a mall, it's super convenient - you can just buy stuff at the mall if you want. But a lot of store employees, say at GameStop or Verizon, will inform you that they have a wider selection and/or better prices at their standalone location down the street from the mall.

They can do that, because it's their store. The mall doesn't tell them not to do that, because it's none of their business.

Going a bit further, Apple's analogy is incredibly poor because it's just a complete lie. What's right outside all the carrier stores at the mall, with a much bigger storefront, bigger logos, brighter lighting, etc? Oh yeah - it's the Apple Store.

Does the mall charge Apple 30% on every Apple product purchased at the mall? Using Apple's logic, they really aught to do that. Maybe malls wouldn't be turning into urban blight (and this has been happening for years before COVID) if Apple would just pay malls what they're worth. Maybe we'd have fewer retailers going bankrupt if Apple wasn't demanding sweetheart deals from the malls and insisting on having their own rent lower and forcing other tenants (America's beloved mom & pop shops and small businesses) to pay higher rents?
 
It doesn't matter what Spotify and Epic think is "fair" commission; it's not their store. But what if Spotify and Epic agree that 10% is a good charge? Should Apple be forced to drop it to 10%? Why?

No, more likely what they want is to be able to offer the commission rate they deem right to iOS users through their own infrastructure without Apple preventing that.

Of course it would mean that the Apple's App Store would have to face competitors on iOS instead of being the only option on the platform, which is definitely something Apple wants to avoid first and foremost to protect their profits.

Apple could show Spotify and Epic that their costs are, say, 15% (even though this is private information and they shouldn't have to), but Spotify and Epic will simply say, "Hey, it costs them 15%; we can run a store for 10%! You must drop it to 10%!" But they don't count all the costs involved in updating SDKs, developing Xcode etc., all the lawyers required for drafting contracts, the people in the various regions who have to determine when App Store prices have to change because of tax rate changes, the translators, the web developers, etc. and so on.

The operative costs of the Apple's App Store would be irrelevant if third-party infrastructures are allowed. SDKs etc. are supposed to be included in the Apple Developer Program.

Apple itself stated that these costs are not the main factor in the commission rate they impose anyhow.

If Apple quantify the exact costs of the servers, bandwidth, employees, and everything else that's included, should Spotify and Epic be given the right to determine how much of a profit above that Apple are allowed to make? That's absolute BS.

Apple would be still allowed to decide how much profit to make on top of their costs, but contending with actual competitors on iOS which would have to do the same on their side.
 
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Or people just bought their Tile products elsewhere? The two are not mutually-exclusive.
You could be right. My local Apple Store has very few non Apple accessories and you can usually buy them cheaper elsewhere.
 
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