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The exemption that Netflix enjoys is this: "Reader Apps may allow a user to access previously purchased content or content subscriptions (specifically: magazines, newspapers, books, audio, music, video, access to professional databases, VoIP, cloud storage, and approved services such as classroom management apps"

It seems pretty clear to me that "Hey" does not give the user access to a previously purchased content subscription in one of the designated categories. Their subscription is not for music, video, books or any of the designated items. And the service they offer is not on the approved list of "exempt services" -- like stuff for teachers.

They don't fall in the exemption; therefore Apple says they are subject to rule 3.1.1.

Someone prove me wrong.
The line from “email service” to “cloud storage” is pretty straight, in my opinion.
 
Not really. I mean a $30b fine isn’t much for Apple. But it won’t end at that.

It'll be negotiated down, with an agreement that the matter is closed. Apple will offset the cost against taxes and come out of it just fine.

This is not the real world here. When you're Apple's size normal rules no longer apply.
 
That's a horrible argument; all that says to me is that BaseCamp somehow got overlooked but _should_ have been subject to 3.1.1. Nothing you said proves to me that "Hey" is a Reader app...because it's not. Shifting goal posts 🙄

There are hundreds of such apps I’m sure. Basecamp can’t just be overlooked. It’s one of the biggest companies in the world. The largest CMS in the world.
 
The real reason Apple allows Netflix and Spotify to avoid the 30% tax is that the general public might make a decision to buy an Android vs an Apple phone based on if it connected to Netflix. In other words many people would move to Android if Netflix dropped Apple. No one will move to Android if "Hey" drops Apple.

This is the only thing Apple cares about. If your app is so good that phone buyers would only buy a phone that runs that app then you have the power to tell Apple what Apple must do and Apple is forced to listen.

I am certain that if Instagram were to say "We will remove access to Instagram content from IOS unless you offer an iPhone with an ugly green color then you can bet Apple will say "yes sir!" will offer an ugly green phone. But if a company called "Hey" made the same demand they'd be laughed at.

This is exactly what is going on here. Netflix says "We are not going to pay your tax" so Apple re-writes their tax rules in such a way that Netflix is exempt from the tax. But small-time developers lack the ablty to force Apple to re-write rules.
 
As a developer, I can tell you, you'll fell different when you pay $30M out of $100M for it.

Wait until you sell a boxed product in a store, and they take the same cut.

I know somebody who's selling a tech hardware product and between them, the distributor, and the retailer, they get 50% of the price the consumer pays.

Cost of doing business.
 
It'll be negotiated down, with an agreement that the matter is closed. Apple will offset the cost against taxes and come out of it just fine.

This is not the real world here. When you're Apple's size normal rules no longer apply.

So you’re siding by somebody that bribes judges for a living?
 
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the money Apple makes gets reinvested into developers which ultimately helps build better apps for you. you should care if EU rules hard.

"but Apple makes billions" yeah ok, but they also have to answer to shareholders which means shifting money around to make the revenue decline look less damaging. maybe increase prices on iPhone for fatter margins, increase in iCloud storage prices, surely increases in Apple Music prices, etc...
You are kind of right and who knows what will it be in 20 years but with the tens of billions Apple is stashing away i am not worried to much. More competition would be great. What i hope is that regulators not only look at the cuts Apple takes because those are all the high profile cases but also the fact they will not allow an App if they deemed it's not in their best business interest (almost quoting textually what is in their guidelines) which is 100% anti-competitive according to the law.
 
The real reason Apple allows Netflix and Spotify to avoid the 30% tax is that the general public might make a decision to buy an Android vs an Apple phone based on if it connected to Netflix. In other words many people would move to Android if Netflix dropped Apple. No one will move to Android if "Hey" drops Apple.

This is the only thing Apple cares about. If your app is so good that phone buyers would only buy a phone that runs that app then you have the power to tell Apple what Apple must do and Apple is forced to listen.

I am certain that if Instagram were to say "We will remove access to Instagram content from IOS unless you offer an iPhone with an ugly green color then you can bet Apple will say "yes sir!" will offer an ugly green phone. But if a company called "Hey" made the same demand they'd be laughed at.

This is exactly what is going on here. Netflix says "We are not going to pay your tax" so Apple re-writes their tax rules in such a way that Netflix is exempt from the tax. But small-time developers lack the ablty to force Apple to re-write rules.

This. The only guy who gets it.
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You are kind of right and who knows what will it be in 20 years but with the tens of billions Apple is stashing away i am not worried to much. More competition would be great. What i hope is that regulators not only look at the cuts Apple takes because those are all the high profile cases but also the fact they will not allow an App if they deemed it's not in their best business interest (almost quoting textually what is in their guidelines) which is 100% anti-competitive according to the law.

Nobody can dictate what Apple charges. EU can ensure they open up side loading. They can’t legally stop them from charging 30%. But they can allow apps to circumvent it to give Apple 0%. That is it.
 
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As a developer, I can tell you, you'll fell different when you pay $30M out of $100M for it.
Really? How would you like zero revenue instead of $70 million?

Traditionally, distributors charged 50+% of retail price to get you into a store. Some just don’t understand how good a deal 30% is.

I can understand wanting to pay less though, everyone always wants to pay less.
 
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Really? How would u like zero revenue instead of $70 million?

Traditionally, distributors charged 50+% of retail price to get you into a store. Some just don’t understand how good a deal 30% is.

I can understand wanting to pay less though, everybody always wants to pay less.

30% is fair. The issue is not having the same ground rules for all companies. That is the issue here.
 
Really? We got into this huge argument with Apple at work for an app that had the same issue, and they were very clear with us that we didn't need to charge the same price in app as we did from our website.
if it cost more in app, Spotify and Netflix would have probably done this a long time ago.
 
Doesn‘t matter if Apple goes bankrupt. The rules have to be the same for all apps. And if anti trust is an issue for EU, they’ll have to open the App Store to third party apps or make it 100% free. Bound to happen sooner or later.

So your argument would go away if the EU ruled that Apple had to go after larger companies who until now had managed to circumvent said rule?
 
30% is fair. The issue is not having the same ground rules for all companies. That is the issue here.

Pretty sure according to his tweets the issue is the guy doesn't want to pay Apple a third of his revenue
 
I'm confused, so how does the Amazon app work? Do they have to pay Apple if somebody buys an item from the App?
 
So your argument would go away if the EU ruled that Apple had to go after larger companies who until now had managed to circumvent said rule?

Would have worked earlier. Won’t work now. Since Apple didn‘t do it for a decade. Screams mal intent. So now they have no choice but to play by the old rules. Forever.
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Pretty sure according to his tweets the issue is the guy doesn't want to pay Apple a third of his revenue

He shouldn’t have to. As per Apple rules, he should be paying 0.
 
I agree with Apple here, I think it's shady for apps to tell you to go to an outside site to pay them for a subscription then come back and use their app.

Secondly, and this is sort of off topic for this article, $99/year for an email app? Really? When there are perfectly good free apps out there? Geez!
 
I see a lot of peoples saying it's Apple hardware, it's Apple iOS, it's their store. Apple should be able to do what they want.

Personally I agree with that ...

but that's not what the law says. Remember the Microsoft anti-monopoly trial. Microsoft could have say it's our Windows, we can do what we want on it, if you are not happy don't make a software for it, make one for Linux or Mac OS instead but that's not how the law works.
 
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So you’re siding by somebody that bribes judges for a living?

Where did I say that? I'm just being realistic. No where did I condone such behavior and I'd appreciate an apology for making such an accusation.
 
I agree with Apple here, I think it's shady for apps to tell you to go to an outside site to pay them for a subscription then come back and use their app.

Secondly, and this is sort of off topic for this article, $99/year for an email app? Really? When there are perfectly good free apps out there? Geez!

NetFlix is shady? You can’t afford a Rolls Royce, so it shouldn’t be sold?
 
I see a lot of peoples saying it's Apple hardware, it's Apple iOS, it's their store. Apple should be able to do what they want.

Personally I agree with that ...

but that's not what the law says. Remember the Microsoft anti-monopoly trial. Microsoft could have say it's our Windows, we can do what we want on it, if you are not happy don't make a software for it, make one for Linux or Mac OS but that's not how the law works.

Apple’s monopoly won’t last forever. Things will change in the coming years.
 
Oh, so you are just guessing then when you said it violated the terms? I thought you actually knew.

Spotify used to do this I think. But then they removed the option because I think Apple banned doing that.
 
if it cost more in app, Spotify and Netflix would have probably done this a long time ago.
I can’t vouch for Netflix but Spotify definitely charged more for IAP, later emailing users to notify them that they could save money by directly subscribing through their site, for some time.
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Spotify used to do this I think. But then they removed the option because I think Apple banned doing that.
No, they just stopped doing it of their own volition. If Apple banned it, lord knows we’d definitely have heard from Spotify about it. They’ve not exactly been quiet on this issue.
 
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