Facebook and Spotify CEOs Slam Apple's App Store

[cwagner1]

I don't use Facebook, spotify or twitter but I think 30% is too high, make it 10% and you will still make money and might not need to change the rules. If not, congress will make it happen at some point.

Why is 30% too high? Apple provides the credit card and refund processing, hosts the files on their servers, deals with os compatibility issues, provides the internet bandwidth for all the downloads, provides the IDE and documentation free of charge. A credit card charge costs large companies 10 cents plus 1.9%. Thats not a big deal on a $100 purchase, but most iOS purchases are $1 - $2. That is 7-12% just to run the credit card.

Back in the OS 9 days you had to buy Code Warrior to write your software. If I remember correctly that was almost $1000. Plus you needed to purchase the inside Macintosh Toolbox books as reference material at $200 each. Internet bandwidth and server costs once you get to the scale of a popular app are not cheap.

Platforms like Nintendo, Sony and Microsoft take a 30% cut of digital game sales for video games, why does the iPhone have to be different?

 

[toph2toast]

Why would I care? Its their company and services, they get to decide how they run it.

Freedom and capitalism.

You can't shout about it only when it benefits you.

There it is... no logical explanation so shrug it off, right?

The App Store is Apple's attempt to assert control of its platform under the guise privacy/what's best for the consumer. It's a joke that needs to stop.

 

[mansplains]

I know where I’m posting this, some these claims have genuine legs. The problem is they don’t go very far because of who is saying them, and why they’re saying them.

Zuck has Metaverse legs now, does that make it count? I guess those aren't technically genuine...

 

[yaxomoxay]

Free market economics. If I create a new platform/product, others have no right to tell me how to design or run it.

Well, actually they have a right to tell you, and that’s how most agreements between two parties work. Then, whoever is the interested party has a right to agree or deny the request - and arguably decline the agreement itself - or simply keep the negotiation going.

The fact that you produce T-Shirts and want $25/shirt doesn’t mean that your distributor can’t come back and say that the pricing is too high, damaging their business, and that the right price should be $22/shirt. Then either party has to make a choice among several options.

 

[mansplains]

imagine using a PC and only being allowed to install apps from Windows Store…

PCs have candy crush pre-installed, what more do you need?

 

[dypeterc]

Twitter, Spotify, and FB should pull their apps from the App Store to protest this injustice! All these platforms can be accessed via the web so the app is redundant anyway, right?

 

[gnipgnop]

To those who keep responding "build your own platform" to every article like this, I have a question. If such a powerful monopoly were held by any other company, would you still defend it, or would you want to see that ecosystem regulated or broken up?

The legal reality: creating your own OS for exclusive use on your own hardware has never previously been considered a monopoly. Nintendo was sued for having total control over software on their own OS/platform and won the lawsuit. Apple was sued for not allowing OSX to be pre-installed on Mac clones that were sold to the general public and won the lawsuit.

The fact is that Apple and Google cannot prevent other companies from developing an OS. Microsoft created a mobile OS. Samsung created a mobile OS. Huawei created a mobile OS. It's not like it can't be done. It's just much more difficult to get traction with consumers/developers. The OS is really the most difficult part of the process, far more difficult than the hardware or app development. It's the difficulty that is Apple and Google's advantage, not monopoly control.

 

[Kulfon]

Obviously they can, but should they? 30% doesn’t sound insane until you add in taxes. I generally agree with the point you’re making, even specifically with the App Store. But when there are only 2 Mobile App stores essentially, and have only been that many for let’s say a decade - something has to give.

I suggest they should create competition for Apple

 

[ProfessionalFan]

When do they get a tour of Apple HQ with Tim?

 

[bobone]

I don't use Facebook, spotify or twitter but I think 30% is too high, make it 10% and you will still make money and might not need to change the rules. If not, congress will make it happen at some point.

in the old days, publishers made less than 50% on their sales, often more like 30%. Now they make 70%, and they're still complaining.

 

[2010mini]

There it is... no logical explanation so shrug it off, right?

The App Store is Apple's attempt to assert control of its platform under the guise privacy/what's best for the consumer. It's a joke that needs to stop.

Again. Their company, not yours or mine. Ferrari straight out bans people from buying their cars. Tesla bans cars from their Supercharger network.
Why is Apple held to a different standard?

 

[polaris20]

I can get every piece of software I need for my Mac without using the Mac App Store. Why should my iPhone be any different?

Because that's what you agreed to, because that's what they wanted the experience to be like. If it's not going to work for you, sounds like Android is a better fit. Choice is great, vote with your wallet.

 

[spazzcat]

Obviously they can, but should they? 30% doesn’t sound insane until you add in taxes. I generally agree with the point you’re making, even specifically with the App Store. But when there are only 2 Mobile App stores essentially, and have only been that many for let’s say a decade - something has to give.

Expect almost every company that an online store like this charges the same amount. And retail is more like 40%.

 

[iOS Geek]

And my iPhone belongs to me, and I should be able to install apps outside the App Store, just like I can with my Mac.

And if that's what you want...you have a choice for a platform that allows just that.

 

[deckard666]

People here are ****ing out of their mind… imagine being against the option to choose where you get your apps from… imagine using a PC and only being allowed to install apps from Windows Store…

Or imagine only being able to download console games from that consoles' game store.....oh wait.....

 

[Anijake]

Would Spotify even be a thing if it weren't for the iPhone?

 

[compwiz1202]

And when you made the decision to buy the phone you AGREED to use their services. You did not HAVE to buy an iPhone.

There are many things you buy but are still restricted on what you can do with it.

Yea and all luxuries that are not necessary. I wish these governments would put their resources into bringing prices of needs back to reasonable levels

 

[russell_314]

Popcorn time. Apple will most likely lose on this one.

I have to agree with you. Tim Cook picked a battle he's not going to be able to win when he went after Musk and Twitter. None of those other CEOs care about Musk but they're just joining in because they smell blood. There are just too many big corporations after him now.

I personally prefer the walled garden of iOS but great power means great responsibility I think this is too much power for even someone like Tim Cook. I think putting someone in charge of what you're allowed to see on your phone is just asking for trouble.

 

[rjp1]

1. Create your own Platform
2. For Spotify CEO - just focus on your own promise to bring lossless in 2021 and let Apple to their own thing
3. Facebook just should sit tight being a company that sells consumer data illegally

Create your own platform is like telling Rosa Parks to build her own bus network.

 

[diskrisk]

Make your own phone, Facebook. Then you can make your own decision how things are ran. Oh wait...

They tried. It miserably failed. AT&T was literally giving them away for $0.99 at one point.

 

[polaris20]

Create your own platform is like telling Rosa Parks to build her own bus network.

Don't compare something as dumb as this to a serious social rights issue.

 

[ACHD]

1. Create your own Platform
2. For Spotify CEO - just focus on your own promise to bring lossless in 2021 and let Apple to their own thing
3. Facebook just should sit tight being a company that sells consumer data illegally

Apple can jsut deny the lossless update like they did to prevent Spotify from selling audio books

They “apple” presented a plan to Spotify. Then when Spotify did it they denied it and refused to let Spotify offer audiobooks. Let that’s ink in. Spotify 100% complied with what apple asked them to do to offer audio books and refused to let it happen. Most likely shocked that Spotify agreed to whatever demands apple made and they “apple” did not expect it.

In this case apple is 100% using its market power as a monopoly to stop others from selling services that are not linked to apple even though apple would get a cut

It’s them abusing a market position as a monopoly.
Telling people they can’t offer services they “apple” have been neglecting.. the books app has many complaints.



But ultimately Spotify was trying to abide by everything apple wanted and apple still said no. It’s concerning that apple wont tell the world the terms Spotify had to do.


But apple will likely stop Spotify from offering lossless because apple is doing it now and is trying to force peopel to use apples services by not letting others offer theirs even though apples infrastructure is not even needed.



This Spotify audiobook thing is 100% apple being evil

Can’t be the good guy if you present demands and they are meant and you go

Oh **** you actually met them. Uh deniednnn

 

[Minato1990]

Aka two bozos crying

 

[neuropsychguy]

I don't use Facebook, spotify or twitter but I think 30% is too high, make it 10% and you will still make money and might not need to change the rules. If not, congress will make it happen at some point.

What is Apple’s profit margin on the App Store? Until we know that, we can’t come up with a “fair” commission.

An expert witness for Epic said it was about 78% gross profit margin (https://www.marketwatch.com/story/h...k-antitrust-trial-couldnt-tell-us-11622224506) but Apple disputed that without providing the true number.

Their profit margin is likely fairly high. However, they do not collect commissions from free apps and the $100 yearly fee won’t cover all costs associated with hosting and serving free apps. Also, many apps are at a lower commission than 30%.

So this means we don’t really know Apple’s App Store profit margins. That’s why we have no idea if a 10% commission is feasible.

 

[gnipgnop]

It’s them abusing a market position as a monopoly.

iOS users can buy Spotify audio books on their web site. It's not like that's unusual for Spotify. Less than 1% of their music subscribers on iOS paid through the App Store. The other 99% paid on Spotify's web site.