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Thierry Breton
Thierry Breton
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Apple's EU Core Technology Fee Could Bankrupt Freemium App Developers
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They have already gone ahead and done it. Already the EU has responded that it will take strong action against companies that do not respond fairly and these changes cannot be considered fair by any means as they will consider the opinions of third parties also. Once Apple starts being fined 10% of "global revenue" for each infraction, they will come to their senses.
The EU cant sue for global revenue, only revenue in the EU.
Since you strongly believe that, then by your logic Apple should lock down macOS as well and demand a "rent" from all developers that distribute their apps via sideloading just like iOS. Right? And if you don't agree with that, then that would make you a hypocrite. Apple does not deserve a single penny from sideloaded apps since developers are not using Apple's store for distribution and Apple's payment system for processing app purchases. To do so is sheer extortion. I seriously hope the EU and US DOJ slams Apple hard for this. This has nothing to do with a free lunch and everything to do with Apple's toxic behavior.
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Looks like you missed an entire conversation about the DMA when it first came up. To refresh your memory, I am attaching the details about the DMA.
Digital Markets Act (DMA) | Updates, Compliance, Training
Uncover the critical components of the Digital Markets Act. Access expert-led compliance insights to navigate regulatory requirements effectively. Earn your online certification, providing independent evidence of your quantifiable understanding of the subject matter.
www.eu-digital-markets-act.com
Companies that do not comply with the new obligations risk fines of up to 10% of their worldwide turnover, or up to 20% of their worldwide turnover in case of repeat offence.
Well, it can say that an App that is free on its app store has to be free everywhere. That will stop this madness from Apple?
The EU can say no app can be costlier than what it is on the App Store. So, a free app on the app store becomes free everywhere. You think the EU has the authority to do this much?
Maybe say keep having people buying their devices and licensing their OS? If you think that without apps the iPhone and the iPad would go anywhere think twice.
The reality is, Apple devices depend way more on third party apps and digital services than they depend on Apple. The reason why these depend on Apple is because millions and millions of people, their customers and potential customers buy their devices. But given the right circumstances these people shift easily. It happened before.
To be honest I find Apple is distracting itself with small issues, the same way MS distracted itself 2 decades ago.
For instance, they may have lost the generative AI band wagon for instance. I think this tech will have a massive impact in computing. A decade from now the way people today interact with their devices will be massively different while Apple is still figuring out how say ... Siri and make iPad OS work.
I don't see a flock of devs supporting the Vision. I mean, they will for sure do research on them. But backing its App Store as they did with the iPhone when it appeared ... don't think so.
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It's possible. A better way, I think, would be the EU demand Apple make iOS / iPadOS as flexible as macOS with respect to app downloads. Hence, Apple doesn't cut of any app that's distributed outside the App Store and does not use Apple's payment system. And when it comes to free apps, like Facebook, Instagram, etc., if they're distributed WITHIN the App Store, they should have to pay a 50 cent Core Technology Fee per initial download.
If Apple starts charging 50 cents for Facebook and Instagram etc., the Appstore will be a graveyard with no apps and let us see who will use iPhones. They will be useful as a paperweight.
For Apps that are distributed within the App Store, I do believe that Apple should get compensated for it. For sideloaded apps, that's a different story.
Apple had a choice to gracefully accede to the spirit of the law, but they chose the other way. Now, they will end up complying with the law because it is not a wise move to taunt the lawmakers of any country and this is tantamount to the same. They will learn it the hard way.
Will they take the risk of compounding fines while the courts decide on the issue? The EU will fine 10% of global revenue for the first infraction and repeat infractions will be fined 20%. Can any company risk so much expecting a favorable verdict from the courts? I doubt it. Let us see who will blink first.
Or not. We will see. Apple didn’t just decide to do this. They pay attorneys fees of $1B and I hope they get something in return.
They will be fined 10% of global revenue for offenses and 20% for repeat offenses. But Apple might still think of delaying this by going to the courts. This might lead them to break up the company? Well, all these decisions might be overturned by the courts, but what if they are not? Apple will be in deep sh**.
It’s called voting with your $$$, a philosophy i espouse. But of course Apple is way too popular for your graveyard scenario.
Some people go on and on about how Apple provides all these APIs, tools, and other resources to devs that allow them to distribute apps around the world with relative ease for $99/year. Because of this they should be more than happy to cut Apple a check for 30%. What you stated is the flip side of the coin that they don’t acknowledge though. What would the iPhone be without third party apps? It probably wouldn’t be on the market anymore or would have dismal marketshare. Apple benefits from the work of countless third-party devs just as much as the devs benefit from Apple’s work. It’s a two way street, but I don’t see devs asking for 30% of the revenue from Apple’s iPhone sales.
You do have a choice, to find another job. If my job forced me to use Facebook Messenger, I probably would too!
There are also plenty of jobs that don't require you to use Facebook Messenger. Go start applying!
(See what happens when you reduce the complexity of choice to black and white – it sounds a little silly, doesn't it?)
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You make a good point. There is no thriving general purpose computing platform without 3rd party apps. Period.
"When Apple takes the European Commission for fools: An initial overview of Apple’s new terms and conditions for iOS app distribution in the EU"
theplatformlaw.blog
When Apple takes the European Commission for fools: An initial overview of Apple’s new terms and conditions for iOS app distribution in the EU - The Platform Law Blog
Yesterday, Apple made an important announcement regarding changes to iOS, Safari, and the App Store in the European Union in response to the Digital Markets Act (“DMA”). This announcement covers a lot of ground and should be read in parallel with a number of accompanying documents. In this blog...
theplatformlaw.blog
They will come down to earth once they are fined 10 or 20% of their global revenue. It's time Apple shareholders watch this space carefully, because if Apple is going to be bullheaded about this, they are going to go bankrupt/broken into pieces or both. The EU might want to make an example of Apple.