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True, but are the rules clear? Which part of the regulations the EU passed is Apple specifically not in compliance with? Why are Spotify and Epic the interpreters of the law? This article is about how the companies say Apple is not in compliance. Shouldn't the EU be making that ruling? Isn't the burden on the EU to write regulations that are clear? The EU made some preliminary comments recently saying Apple did not appear to be in compliance (preliminary judgment doesn't mean the EU was correct, although it might have been). Apple changed what it is doing and before the EU makes a judgment, CEOs jump in with interpretations of illegality. Why does anyone listen to their legal interpretations? Even if they turn out to be correct, they are not legal specialists. Their companies have EU legal counsel, but the laws and issues are so complex it will take years to figure out.

So maybe Apple really is following the rules but some other companies do not like how Apple is doing so. Apple's actions are self-serving, but so are Spotify's and Epic's. Are Spotify and Epic more legitimate corporations than Apple? Because the EU deemed Apple a "gatekeeper", does that mean the other companies are correct?
Based on which assumption do you state that rules are not clear?
 
Yeah you have voting rights in the country where you live but given that Apple are on the radar of regulators in half of the developed world not sure what good that is going to do you, but sure.
Of course it’s not the investigation, but the results. It’s the outcome.
Have you been living under a rock?
This is a bunch of whining, imo. It’s not about living under a rock, it’s about legitimate complaints which these are not.0 Signing up voluntarily and then complaining is ludicrous.

There are 15 different companies involved with the coalition for app fairness, several of which testified against Apple and Google to the Senate Judiciary Committee. Very much the precursor to the current US v Apple suit
That does not mean the complaints are legitimate. And of course filing a lawsuit is easy, winning not so much.
That has since been expanded to tens of thousands of others that are in favor of regulating mobile app stores.

My advice, form your own mobile market. It it still doesn’t mean the complaint to are legitimate.
 
It’s bizarre. I bought a car that can go 200 mph. It’s bizarre the police think they can ticket me for speeding. The police don’t own me.

Apple aren't the police, they are the people who made and sold the car. HTH
 
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Just exactly what libraries are developers using if they want to move away from Apple's app store that is different to if they stayed in Apples app store? There is nothing and if there is it's because Apple recently introduced them to catch developers out in having to use them. Like creating an API if developers want to use links in their app that steers users away from the app to an external site, an API that was never there because the app store T&C's prevented such behaviour until the EU with it's DMA got involved and low and behold what does Apple do, create and API for external links.

So, please tell me what API's are Epic and Spotify using or going to use that constitute a 'license to make money' as you call it? and you cannot use the recently introduced API's Apple created because they are designed to prevent developers from moving away from the app store.

This should be obvious. You cannot legally use Apple’s software for any purpose, let alone making money, without having a valid license from Apple.
 
The yearly developer fee pays for access to Apple’s development resources, including code development support, downloads, beta programs, and education. It does not constitute a license to make money from the use of their libraries nor customer acquisition fees
Do Uber, Doordash or Booking.com make money through their iPhone apps?

Yes. It does include a licence to use apps for commercial purposes, to make money.
 
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Do Uber, Doordash or Booking.com make money through their iPhone apps?

Yes. It does include a licence to use apps for commercial purposes, to make money.

You either aren't a developer or you don't pay attention to the licenses you sign. Schedules 2 and 3 of the Apple Developer Program License (aka Paid Applications Agreement) must be signed before apps can be distributed through the App Store. Don't confuse the fee that is paid for access to the developer website and resources with the licenses you must sign before you can sell an app.
 
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They are monetizing their IP when they sell their extremely expensive hardware at near 40% margins

They are monetizing their IP when they charge the annual developer fee (there is nothing stopping them charging more for this that they currently do by the way)

They are monetising their IP when they charge for a purchase from one of their services.

None of these things are inherently anticompetitive.

They should not however ban third parties from actions that they use to promote their own services (linking to their own site, push notifications etc), force third parties to use their payment processing and the associated fees or give up in app payments/sign ups all together.
You and I both know that is not what is being asked here.

How profitable Apple hardware is is immaterial. There is no obligation for Apple to subsidise the cost of their software and services indefinitely just because. Nobody raises a stink about Apple absorbing the costs of services like Maps, Siri and iMessage, yet I am pretty sure that if they choose to offer Apple Music for free or at a heavily discounted price (and Apple likely has the resources to sustain this indefinitely), Spotify would be the first to cry foul, because it would be a direct threat to their business model.

On second thought, perhaps Apple should do precisely that, just to turn the screws on Spotify a little.

Anyways, I also wish to point out that based on my understanding of the DMA, Apple is not expected to do so either. I don't happen to disagree with that Apple is choosing to do here, because I continue to assert that iOS is Apple’s intellectual property, and if they wish to charge for it, they can. To insist otherwise is akin to taking their property and basically nationalising it (while demanding that Apple continue to foot the bills of taking care of it). Is it frustrating that Apple refuses to show any quarter? Maybe, and the DMA isn’t going to change that.

So humour me here. Let's say Apple is determined to continue monetising their IP after the sale. They are not going to do a Google. What's your threshold?

Simple yes or no question for you. If Microsoft expected a 15-30% cut of every iTunes store purchase on Windows would you think that was fair?
The past few years have taught me that many people are too quick to yell "unfair!!!" when they really mean "not to my advantage". After all, consoles charging 30% hasn't stopped developers from releasing games from their platform (in part because the sort of software you would find on them has zero marginal costs), and Steam accounts for a fair amount of games sold on PCs.

If Microsoft charged every app developer 15-30% of revenue, then it's not really a matter of fair or unfair. It is simply what it is (a cost of doing business on their platform), and businesses will adjust accordingly. Apple might simply elect to not release iTunes for Windows, or perhaps find a way to eschew payments. Maybe the iPhone never took off, and maybe we are here still using Symbian phones running JAR applications, and developers think nothing about paying mobile carrier stores 50-70% of revenue. And life goes on.

It's the same thing here. It's not that companies like Epic and Spotify can't pay. Given the option, they would rather choose not to, which is why they are lobbying so hard for measures which would allow them to step around Apple's iron-fisted control of the App Store. It's like me saying that while I am okay paying as much taxes to the government as I do every year (high relative to my peers, because I am single without kids), but I would probably jump at an opportunity to get away with paying less taxes if I thought I could get away with it. Money is money at the end of the day, so who decides what is "right" or "wrong" here?

No, EU rebalances the power between monipolies and consumer...
And they do so in a manner which basically freezes innovation in their region. It will be interesting to see whether over time, the EU region will receive fewer new features and new companies simply don't bother to do business in said region.

Is it any surprise why the tech giants being regulated are almost all US companies, with none emerging from the EU? Companies like Apple and Facebook are not going anywhere; they are already there and likely won't face competition even as they are forced to weaken their offerings or withhold them from the region altogether.

Which raises the question - if legislation is passed, but ends up not applying to any entity, does it exist?
 
Schedules 2 and 3 of the Apple Developer Program License (aka Paid Applications Agreement) must be signed before apps can be distributed through the App Store.
Wrong.
You either aren't a developer or you didn't pay attention to the licenses you agreed to.

Free apps can be distributed through the App Store according to Schedule 1 of the agreement.

Don't confuse the fee that is paid for access to the developer website and resources with the licenses you must sign before you can sell an app.
Uber does not sell their app.
Neither do Doordash or Booking.com.
They're all free apps.

The yearly developer fee pays for access to Apple’s development resources, including code development support, downloads, beta programs, and education. It does not constitute a license to make money from the use of their libraries nor customer acquisition fees. This is clear because Apple has always charged additional amounts for for-profit apps. Pretending the $99/year fee covers all the benefits of being licensed to operate for profit in the Apple ecosystem is naïve to the point of being maliciousness.
Does Uber use Apple's libraries to make money? Yes.
Do they use the Apple App Store and their app to acquire customers? Yes.
Is their app a for-profit app? Yes.
Are they charged "additional amounts" for their for-profit app (beyond the developer fee?) No, not that I'm aware of.
Does the $99/year fee cover everything that's needed for such for-profit apps in Apple's ecosystem? Yes.
 
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Please elaborate. There is no evidence of any fraudulent activity is there.
Fraud as in whining. It's similar to going to a "fancy" restaurant, knowing the higher prices and then complaining the prices were too high.

But we will go around in circles. The DMA is there, but it doesn't make the legislation good or that it will service it's intended purpose which is to strip apple of profits and control of it's app store. Thus making the EU playing "robin hood" on someone else's dime.
 
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To insist otherwise is akin to taking their property and basically nationalising it (while demanding that Apple continue to foot the bills of taking care of it)
It has become so important for other business users and consumers that government regulation of their property is appropriate.

But don't conflate that with nationalisation. This has got very little to do with nationalisation. Apple can sell their iPhones and operating systems for any price they like.

The EU simply enacted a limited set of rules to prevent them from abusing their market power on other markets - such as the one for online music streaming.
If Microsoft charged every app developer 15-30% of revenue, then it's not really a matter of fair or unfair. It is simply what it is (a cost of doing business on their platform), and businesses will adjust accordingly.
It's not unfair given how Microsoft has offered access for free to crowd out almost every other competitor in the desktop operating system space to make theirs the dominant OS if not (nearly) a monopoly. Otherwise... whether fair or unfair, such a pricing model is undesirable for society and the economy.

Money is money at the end of the day, so who decides what is "right" or "wrong" here?
The government does, with regards to Microsoft and Apple.

And they do so in a manner which basically freezes innovation in their region.
Quite the contrary - they're encouraging innovation from non-gatekeeping firms by providing them a level playing field.
Is it any surprise why the tech giants being regulated are almost all US companies, with none emerging from the EU?
The U.S. has historically been the primary driver of the personal computing revolution. And their lack of government oversight and regulation has contributed to these tech giants becoming so big. That doesn't mean that "tech giants" and everything they do is "good" or desirable.

Companies like Apple and Facebook are not going anywhere; they are already there and likely won't face competition even as they are forced to weaken their offerings or withhold them from the region altogether.
👉 And that, precisely, is why government regulation is warranted: "They won't face competition" - combined with their gatekeeping power as intermediaries between other businesses and consumers.

You may want to live in dystopian future where a handful "big tech" control your every step, transaction, social interaction and businesses' access to consumers like you - becoming every more powerful in the process and subjugating every other (digital) business.

The European Union has decided it doesn't want to.

So they've enacted rules for the business conduct of big tech companies - whether they're from the U.S. or elsewhere. And those rules are relaxed enough to still leave them plenty of room to "charge for their IP".
 
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You and I both know that is not what is being asked here.

How profitable Apple hardware is is immaterial. There is no obligation for Apple to subsidise the cost of their software and services indefinitely just because. Nobody raises a stink about Apple absorbing the costs of services like Maps, Siri and iMessage, yet I am pretty sure that if they choose to offer Apple Music for free or at a heavily discounted price (and Apple likely has the resources to sustain this indefinitely), Spotify would be the first to cry foul, because it would be a direct threat to their business model.

On second thought, perhaps Apple should do precisely that, just to turn the screws on Spotify a little.

Anyways, I also wish to point out that based on my understanding of the DMA, Apple is not expected to do so either. I don't happen to disagree with that Apple is choosing to do here, because I continue to assert that iOS is Apple’s intellectual property, and if they wish to charge for it, they can. To insist otherwise is akin to taking their property and basically nationalising it (while demanding that Apple continue to foot the bills of taking care of it). Is it frustrating that Apple refuses to show any quarter? Maybe, and the DMA isn’t going to change that.

So humour me here. Let's say Apple is determined to continue monetising their IP after the sale. They are not going to do a Google. What's your threshold?

Well just claiming 'it's Apple's IP they can monetize it however we want' is just erroneous.

Eventually Apple will comply. They might resist, they might drag their feet, they might need to pay several large fines but they will comply.

Regulators have every right to dictate how businesses operate in their jurisdiction.

And they do so in a manner which basically freezes innovation in their region. It will be interesting to see whether over time, the EU region will receive fewer new features and new companies simply don't bother to do business in said region.


Yeah, I think the opposite is true. Apple's app store rules are so silly and restrictive they are harmful to innovation.

The cloud gaming thing is a perfect example of this, Apple insistence that Microsoft had to submit every game individually for app review basically made it impossible for the service to exist at all on iOS for years. Apple only relented when it was clear they were about to get the regulatory book thrown at them.

Is it any surprise why the tech giants being regulated are almost all US companies, with none emerging from the EU? Companies like Apple and Facebook are not going anywhere; they are already there and likely won't face competition even as they are forced to weaken their offerings or withhold them from the region altogether.

Which raises the question - if legislation is passed, but ends up not applying to any entity, does it exist?

This is purely a consequence of the major platforms all being run by US companies (Apple/Google/Microsoft).

The idea that this is some kind of EU protectionism is a very flimsy argument, almost all of the companies that have been target for EU regulators are also being looked at to one extent or another in the US.

Amazon, Google and Apple all sued by the US government in recent years also.
 
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Quite the contrary - they're encouraging innovation from non-gatekeeping firms by providing them a level playing field.
I have faith in Apple's ability to navigate the DMA at minimal cost to themselves. It's still early days.

And as the saying goes - there is good in bad, just as there is bad in good.

Perhaps in the short run, the EU legislation appears to be a net good, with the iPhone 15 getting USB-C and consumers being able to access apps they otherwise wouldn't. At the same time, we are starting to see the unintended consequences creep in, from Apple Intelligence possibly being delayed (due to uncertainty as to whether Apple can adhere to the interoperability requirements of the DMA), to Microsoft blaming the EU in part for the fallout from Crowdstrike, to Meta's Llama model not being available. This is not a void that can be readily filled by smaller developers who simply don't have the system access to take the place of said features.

At the same time, what does it say about the EU's ability to compete on a global stage, because their legislation applies only within their borders (I don't think we will see a repeat of the cookie banner fiasco where everyone around the world ended up being spammed with endless meaningless popups), or of new companies' willingness to enter an increasingly regulated environment. After all, if developers can choose not to release apps for the iOS App Store, it stands to reason that people can also choose not to do business in the EU.

I suppose as long as people in the EU are cognisant of the tradeoffs the DMA will entail both in the short and long run, and are fine with it. I suspect the full ramifications have yet to unfold, with regards to what it means for new features from current entrenched businesses, pricing levels, as well as businesses that could have set foot in the EU (but ultimately didn't).

Time will tell.
 
At the same time, what does it say about the EU's ability to compete on a global stage, because their legislation applies only within their borders (I don't think we will see a repeat of the cookie banner fiasco where everyone around the world ended up being spammed with endless meaningless popups), or of new companies' willingness to enter an increasingly regulated environment. After all, if developers can choose not to release apps for the iOS App Store, it stands to reason that people can also choose not to do business in the EU.

I suppose as long as people in the EU are cognisant of the tradeoffs the DMA will entail both in the short and long run, and are fine with it. I suspect the full ramifications have yet to unfold, with regards to what it means for new features from current entrenched businesses, pricing levels, as well as businesses that could have set foot in the EU (but ultimately didn't).

Time will tell.

Time will certainly tell.

The EU were just first out of the blocks, the idea that Apple is going to have this two tier system where they just make the concessions in the EU and nowhere else. Neeever happening.

It's on borrowed time everywhere else.
 
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No Apple does not. When you enter into an agreement with apple you agree to their t&c.
"No Apple does not." vs. "you enter into an agreement [to only purchase apps from Apple's store]."

Careful dude. Your other face is making you look bad.
 
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Time will certainly tell.

The EU were just first out of the blocks, the idea that Apple is going to have this two tier system where they just make the concessions in the EU and nowhere else. Neeever happening.

It's on borrowed time everywhere else.
Which would also explain why Apple has chosen to respond the way they did.

Just as the DMA may form the template with which the rest of the world adopts, Apple is also testing their response to the DMA for the eventuality that they have to roll it out to other regions besides the EU. One side wants the ultimate concession, while the other side is determined to concede as little as possible.

A small part of me wonders if the natural end state for all of this is Apple announcing a pulling out of the EU (and truly having the intention to leave if push comes to shove) and then having the European Commission come back to the table offering more lenient DMA enforcement terms. Especially if this threatens to cause a domino effect involving other Big Tech companies pulling out. I believe that Apple should support its ~100M iOS users in the EU by continuing to operate in the market, but you should all be overjoyed over this possibility, right? Apple can't break the rules in the EU if it ceases to operate there, they likely take a significant hit to their quarterly profits (further fuelling the "Apple is doomed" narrative), Tim Cook gets raked over the coals, and you can all finally migrate over to Android and enjoy the sideloading and third-party app stores that you have all been clamouring for since day 1.
 
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A small part of me wonders if the natural end state for all of this is Apple announcing a pulling out of the EU (and truly having the intention to leave if push comes to shove) and then having the European Commission come back to the table offering more lenient DMA enforcement terms.
This is an interesting little fantasy you've woven for yourself. It naturally assumes that the EU needs Apple more than Apple needs the EU (spoiler alert - this couldn't be farther from the truth) or that other tech companies who are not in violation of the DMA would pull put in solidarity with their biggest competitor.

Apple can't break the rules in the EU if it ceases to operate there, they likely take a significant hit to their quarterly profits (further fuelling the "Apple is doomed" narrative), Tim Cook gets raked over the coals, and you can all finally migrate over to Android and enjoy the sideloading and third-party app stores that you have all been clamouring for since day 1.
Or people can continue to buy Apple's products for their own merits and not have to be beholden to an abusive monopolist the likes of which we haven't seen since 1990s Microsoft.
 
There is a general consensus among most economists that completely unlimited capitalism results in most markets being eventually cornered by very few gigantic players, which in turn do their absolute best to entrench themselves and prevent any new competition from ever reaching the top.

This leads to little to non-existant competition and stagnation. The idea that a "completely free market" eventually ends up killing itself is not really up for debate, it's quite settled. What IS up for debate is how much or how little regulation results in best long-term societal outcomes.

People in the EU are commonly of the opinion that inflicting strict limitations on how companies at the very top of the foodchain can behave which, yes, obviously does hurt them, makes completely sense when looking at the big picture.

It's a sad state of affairs over there in the US as this sort of thinking used to be common over there too (See forced break-ups of Standard Oil and the telecoms), but the US seems to have mostly abandoned pro-market thinking and adopted pro-megacorp thinking instead.

Consensus is a political term not an economic one. Economists are even unable to agree whether the field of economics itself is either a priori or empirical science.

Every company, hell even people, will try to gain an advantage by standing on their prior work and rightfully so but you call it “entrenching themselves.” Shouldn’t either people or companies —essentially a group of people— be allowed to do that? And how exactly will they prevent any competition, new or old, from gaining ground in a free market? Please explain the mechanics exactly.

Monopoly doesn’t always imply stagnation. Standard Oil; in spite of being the dominant player, kept increasing efficiency of refining and lowered its cost to a tenth in span of thirty years. They indeed passed on this savings to the customers and this in turn brought about critics’ accusations of “predatory“ pricing. Read the history of Standard Oil which dispels any myth of predatory pricing and has been instrumental in shaping the Anti-Trust laws in US.

So the future isn’t preordained.
 
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