EU Closes Antitrust Probe Into Apple's Ebook App Store Rules

[vantelimus]

That's the problem, apple forces you to use the apple app store if you want to sell digital goods for the iPhone, then takes a 30% cut.

Why do you want to sell digital goods for the iPhone? Oh, I see. Since the turn of the century, Apple has spent $183 billion on R&D, and over $226 billion getting its products marketed and sold. By doing so, they have built a base of loyal and affluent customers who trust Apple to deliver quality products and services. You'd love to tap into that customer base without having to spend the $400+ billion over decades, wouldn't you? We call that freeloading.

Try telling Walmart they must allow you to set up shop inside their outlets and bear all the expenses of warehousing, delivering, payment processing, etc., yet make zero profit from the activity. See how far from Bentonville you land when Walmart boots you out of their office.

 

[macfacts]

Why do you want to sell digital goods for the iPhone? Oh, I see. Since the turn of the century, Apple has spent $183 billion on R&D, and over $226 billion getting its products marketed and sold. By doing so, they have built a base of loyal and affluent customers who trust Apple to deliver quality products and services. You'd love to tap into that customer base without having to spend the $400+ billion over decades, wouldn't you? We call that freeloading.

Try telling Walmart they must allow you to set up shop inside their outlets and bear all the expenses of warehousing, delivering, payment processing, etc., yet make zero profit from the activity. See how far from Bentonville you land when Walmart boots you out of their office.

Kobo and Amazon have no problem setting up their own online book store with their own servers and payment processing. But the only way to sell digital books is if you can some how _give_ the buyers a book reader app and apple won't let iPhone owners side load free apps.

So in your opinion, michelin tires and Toyo tires are free loading off of car manufacturers by not giving 30% of tire sales to Ford or Honda?

A apple car would be sold with wheel locks that only apple has they key to and force tire manufacturers to sell in apple dealerships.

 

[chrono1081]

We hired builders to build our barn and chicken coop. Should the builder get a portion of the eggs our chickens lay? Of course they don't, because we own them. Same thing goes for my iPhone, I own it, yet the "builders" will get a cut for the life of the product.

Rant aside, I don't buy ebooks from Apple because I have zero interest in reading ebooks on a LCD, LED or OLED screen. It's either e-ink of paper, and the majority of my reading is still on paper.

That’s not a good analogy, you own the coop, just like a book store can own it’s own building, or ann ebook publisher can own it’s own app or sell from an website (you can put other books in the books app mind you.)


A better analogy:
You’re a store in the mall, do you get to set up shop there for free and enjoy the perks of all the mall traffic? Or do you pay a fee to the mall?

 

[chrono1081]

to "sell" books, you need a reader app to read them, unless you want them to give them away for free with no drm.

Ok so make an app and sell them through the app? Or is it better to let someone do that work for you and just pay a fee? Everyone has that choice.

 

[vantelimus]

So in your opinion, michelin tires and Toyo tires are free loading off of car manufacturers by not giving 30% of tire sales to Ford or Honda?

No, they aren't permitted to freeload off of the infrastructure built out to sell tires and they don't get to demand Ford or Honda use their tires.

They don't get to demand Big-O Tires, or Costco, or etc., sell their tires without a mark up. They can't use the power of a governmental entity to demand access to the Big-O Tire customer list so they can bypass Big-O and sell directly. Michelin built out their own chain of tire stores to keep more of the profit, but it doesn't get space inside Costco to induce people to buy their tires at a Michelin store instead. Likewise, they can't demand Ford equip their tires as original equipment or even demand Ford dealerships carry their tires for sale. Pirelli doesn't get to require Ford to build only cars that use the size tires Pirelli wants to manufacture.

 

[macfacts]

No, they aren't permitted to freeload off of the infrastructure built out to sell tires and they don't get to demand Ford or Honda use their tires.

They don't get to demand Big-O Tires, or Costco, or etc., sell their tires without a mark up. They can't use the power of a governmental entity to demand access to the Big-O Tire customer list so they can bypass Big-O and sell directly. Michelin built out their own chain of tire stores to keep more of the profit, but it doesn't get space inside Costco to induce people to buy their tires at a Michelin store instead. Likewise, they can't demand Ford equip their tires as original equipment or even demand Ford dealerships carry their tires for sale. Pirelli doesn't get to require Ford to build only cars that use the size tires Pirelli wants to manufacture.

You understand/agree that tire manufacturers can't demand a store sell their tires but feel apple is allowed to use digital locks to force ebook sellers sell in Apple's app store (cause that is the only digital app store for iPhones). Reality distortion field is real.

 

[vantelimus]

You understand/agree that tire manufacturers can't demand a store sell their tires but feel apple is allowed to use digital locks to force ebook sellers sell in Apple's app store (cause that is the only digital app store for iPhones). Reality distortion field is real.

Kindle is distributed for free on Apple's App Store and one buys books online from Amazon without Apple seeing a penny. That directly refutes what you say. Reality is different from what you believe. I guess that was your point about reality distortion.

 

[macfacts]

Apple only got rid of the anti-steering rules in January 2024, but before that companies couldn't tell users where they could buy digital goods.

 

[davide_eu]

The European Commission has ended its antitrust investigation into Apple's App Store rules for ebook and audiobook apps, following the withdrawal of a complaint by an ebook distributor.

Originally launched in June 2020, the investigation was sparked by a complaint from Rakuten's Kobo subsidiary. Kobo had argued that Apple's mandatory 30% commission on App Store purchases made it virtually impossible to operate profitably while competing with Apple Books, which isn't subject to the same fee structure.

The probe examined Apple's requirement that developers use its in-app purchase system, and restrictions preventing developers from informing iPhone and iPad users about cheaper purchasing options outside the App Store.

Although this particular investigation has concluded, the Commission said that the closure does not indicate Apple's conduct complies with EU competition rules. Apple still faces scrutiny under both EU competition laws and the Digital Markets Act (DMA), which designates Apple as a "gatekeeper" and requires changes to its App Store practices.

The ebook investigation was one of three parallel probes launched by the Commission in 2020. In March 2024, the Commission fined Apple over its music streaming app practices.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: EU Closes Antitrust Probe Into Apple's Ebook App Store Rules

Thank EU for regulating this **** digital market.

It's time a$$le is brought to a simple mobile device maker, and leave any "store" to a real free market.

Thank you again for bringing "freedom" in this market, in the same way US is bringing freedom to foreign countries using their army.

 

[davide_eu]

I haven't bought a book from Apple in probably 5 years. Most of my eBook purchases are Amazon

Yes, there is no reason to buy anything from a$$le... Amazon is the leader, you can read their book on any platform... it's time to shut down any wallet garden forever!

 

[davide_eu]

Pretty soon no one is going to have app stores to sell in. If you don't like to use a digital storefront that charges a fee, don't sell in a digital storefront. Create your own site at your own expense and sell that way, see how quickly it costs vastly more than that 30% fee.

Nobody needs any "app store"; let's use the web, an open platform for everything... the "app store" that was introduced by jobs was a simple way to squeeze more money from unskilled users, people that believe that their phone with app is the future, whilst is the past.

 

[surferfb]

Nobody needs any "app store"; let's use the web, an open platform for everything... the "app store" that was introduced by jobs was a simple way to squeeze more money from unskilled users, people that believe that their phone with app is the future, whilst is the past.

Yes, making people download apps from random webpages is more convenient and secure than an App Store.

 

[chrono1081]

Nobody needs any "app store"; let's use the web, an open platform for everything... the "app store" that was introduced by jobs was a simple way to squeeze more money from unskilled users, people that believe that their phone with app is the future, whilst is the past.

It wasn't a "simple way to squeeze more money". Many people forget what the world was like before app stores, especially for people like indie developers. You had to create a web site, pay for hosting, pay for servers, pay for secure payment systems, be responsible for all of that should something go wrong, and then also get your name out there. Or, you could make a deal with a publisher who usually left you with roughly 2%-5% of your sales (not a typo) after they took the rest for handling everything I mentioned above.

App stores were a literal blessing. Only 30% cut for all that? Sign me up! That's why there was so much excitement about the App Store when it rolled out, developers couldn't believe they got to keep 70% of their revenue. That was unheard of back then. (And now it's only 15% if your app makes less than a million a year).

 

[CarAnalogy]

We hired builders to build our barn and chicken coop. Should the builder get a portion of the eggs our chickens lay? Of course they don't, because we own them. Same thing goes for my iPhone, I own it, yet the "builders" will get a cut for the life of the product.

Your principle is right but I don’t think that’s quite the right analogy. Building your own coop or having it built would be building your own web platform.

Apple is more like telling you they have built the world’s best chicken coop so you have to rent theirs. It’s not safe to run your own chicken coop, after all. Think of the diseases and predators and expenses! Just let us handle all your coop needs and give us 30% of the produce!

 

[AppliedMicro]

Pretty soon no one is going to have app stores to sell in

Nonsense. There are more software application stores for iOS than ever before (in the EU).

Almost as if the apps and digital goods sold on iPhone need to use Apple's intellectual property to function and be used, and Apple should be compensated for that use.

Why do you want to sell digital goods for the iPhone? Oh, I see. Since the turn of the century, Apple has spent $183 billion on R&D, and over $226 billion getting its products marketed and sold

It‘s about bloody displaying text (a souped up bundle of HTML, CSS and images) on a screen.
Very basic functionality of any general-purpose computer.
Nothing that warrants a 30% commission on content that Apple neither owns nor delivers.

A better analogy:
You’re a store in the mall, do you get to set up shop there for free and enjoy the perks of all the mall traffic? Or do you pay a fee to the mall?

There’s no duopoly of malls in entire countries and malls don‘t lock in their customers.
There’s no €500 or €5000 device purchase required to enter a mall.

Yes, making people download apps from random webpages is more convenient and secure than an App Store.

It’s not. Neither more secure nor convenient (than the way Apple or Google offer it). That’s why, coupled with the bundling of App Store with mobile operating systems, these business models have been so successful.

 

[charlesdayton]

Just wait until they learn about gaming consoles!

 

[chrono1081]

Nonsense. There are more software application stores for iOS than ever before (in the EU).


It‘s about bloody displaying text (a souped up bundle of HTML, CSS and images) on a screen.
Very basic functionality of any general-purpose computer.
Nothing that warrants a 30% commission on content that Apple neither owns nor delivers.

There’s no duopoly of malls in entire countries and malls don‘t lock in their customers.
There’s no €500 or €5000 device purchase required to enter a mall.

It’s not. Neither more secure nor convenient (than the way Apple or Google offer it). That’s why, coupled with the bundling of App Store with mobile operating systems, these business models have been so successful.

Nonense is everything you typed here. You're just shuffling statements around to try and be correct. Anyway we're done here. You can't offer any actual facts, just opinions.

 

[I7guy]

We hired builders to build our barn and chicken coop. Should the builder get a portion of the eggs our chickens lay?

Only if that was the agreement when you signed the contract. This builder has a patent on the type of chicken coop and barn. So if you want that type of chicken coop you have to use this builder.

Of course they don't, because we own them.

Doesn’t matter, a deal is a deal.

Same thing goes for my iPhone, I own it, yet the "builders" will get a cut for the life of the product.

You only rent the software.

Rant aside, I don't buy ebooks from Apple because I have zero interest in reading ebooks on a LCD, LED or OLED screen. It's either e-ink of paper, and the majority of my reading is still on paper.

 

[I7guy]

Apple only got rid of the anti-steering rules in January 2024, but before that companies couldn't tell users where they could buy digital goods.

When you walk into Costco to buy goods you are the behest of their rules. Notice you elect to buy from Costco. When you want to sell through Costco you are at the behest of their rules. Notice how you elect to sell through Costco. When you sell through apple….

 

[macfacts]

They built the platform why shouldn’t they benefit? You literally don’t need Apple Books to sell digital books.

but the end user bought the smartphone, why shouldnt the owner be allowed to buy apps/goods from what store they want.

 

[macfacts]

When you walk into Costco to buy goods you are the behest of their rules. Notice you elect to buy from Costco. When you want to sell through Costco you are at the behest of their rules. Notice how you elect to sell through Costco. When you sell through apple….

thats the point, some companies dont want to sell in the apple app store, they just want to sell to iPhone users.

 

[I7guy]

thats the point, some companies dont want to sell in the apple app store, they just want to sell to iPhone users.

Websites, email, social media etc it’s not as if there aren’t other options. You can sell to iPhone users any way you want. If you want to use iOS specific facilities, like selling to Costco you gotta follow the rules.

 

[macfacts]

Websites, email, social media etc it’s not as if there aren’t other options. You can sell to iPhone users any way you want. If you want to use iOS specific facilities, like selling to Costco you gotta follow the rules.

you cant "side load" apps, they have to go through a gatekeeper.

 

[vantelimus]

It‘s about bloody displaying text (a souped up bundle of HTML, CSS and images) on a screen.
Very basic functionality of any general-purpose computer.
Nothing that warrants a 30% commission on content that Apple neither owns nor delivers.

You conveniently ignored the point about Apple spending over $400 billion this century to build a loyal affluent customer base. Apple gives you access to that, the greatest of their assets. I get that you want it for free. Of course you do. That is freeloading.

There’s no duopoly of malls in entire countries and malls don‘t lock in their customers.

Actually, a few large corporations own most of the malls in the US. You never find competing malls across the street from one another. They carve up geographies so they do not compete. This kind of strategy is taught in every business school for every way in which markets can be carved up whether by geography or market segment. So, while malls don't lock in their customers, they do tend to dominate geographic areas to the point where they would be declared monopolies if your cell-phone rules were applied.

The companies which build malls spend on the order of $250 million to create a space that attracts customers. Stores don't get to use space in the mall for free. If you want to take advantage of all of the foot traffic that is attracted, you not only have to pay rent, but the managers of the mall have to approve the nature of your store. You can't just show up and demand access the way you are demanding it on iOS.

 

[I7guy]

you cant "side load" apps, they have to go through a gatekeeper.

Here in the US there are no gatekeepers. If you want to sideload some options:
1. Jailbreak
2. Android
3. Move to the EU

Here in the US we have the US version.