Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
30% seems too high but obviously they should pay something since they're getting exposure from Apple's App Store. Maybe they should be trying to renegotiate the commission, not do away with it entirely.
 
  • Like
Reactions: Benjamin Frost
Someone took Microsoft as an example, surely you understand that market share matters when an comparisson like that is made..

I understand why Microsoft was investigated just as I understand why Apple is being looked at, and yet not investigated at this point. They may not be investigated at all.
 
that's like Target charging 30% markup for Jeans; while selling their own brand WRANGLER Jeans:
when they sell their own brand they obviously don't pay the markup to themselves.

Is this really so unfair ? a lot of stores sell some of their own brand products. Unfair would be to charge Spotify more than other streaming services.
 
  • Like
Reactions: AdonisSMU
It's just a matter of time before Apple becomes the next MS and will get slapped down. Its inevitable and people should understand that what goes up must come down >
 
How exactly does this apply to antitrust law? AFAIK, antitrust law only applies when a company has an overwhelming dominance in the marketplace and uses that dominance to unfairly restrict competition. Apple is certainly not the dominant streaming service and they don't have dominance in the mobile marketplace.
 
  • Like
Reactions: mackiwilad
But there wasn't Apple Music when they agreed to the TOS which quite clearly changes everything for the likes of Spotify et al - when your as big as Apple and you don't have to pay anyone 30% you can obviously have an unfair advantage when it comes to pricing. 30% is a massive markup when you're trying to compete. I'm no lawyer (unlike it seems everyone else on here) but I hope something comes of this. I'm as big a fan of Apple as the next guy that frequents this site, but i think fair & honest competition is good, and charging what they do and enforcing the other rules (i.e. no allowing in app links to external websites) appears wrong to me.

Apple Music existing doesn't change the TOS or the agreement. Even if it did, Apple has the right to change their TOS. 30% is nothing compared to the mark up on most products sold in stores and it is equal to that of other mobile device app stores (android, windows). The amount of Apple's cut is irrelevant. The real question is whether or not Apple has a right to take a cut and prevent apps from directing to their own websites to sign up for service. I think few will argue that Apple doesn't deserve a piece of the pie; all stores mark up products they sell and Apple incurs costs based on offering those apps. To whether or not they have a right to prevent apps from directing to their own sites to get users to subscribe I'll ask this: Do you think Best Buy should be forced to carry game disks that are free but require the purchase/subscription to be made when they are loaded into a gaming system?

You say that 30% isn't fair and puts them at a competitive disadvantage. Apple is giving them a platform to compete on and an enormous customer base. It is no different than any other store. Do you think Apple shouldn't able to create apps or services that compete against existing apps? What about grocery stores that carry store brand items along side name brand items?

Investigation seems obvious when Apple introduces its own subscription service and puts all the competitors at a 30% disadvantage. Regulators would be all over Microsoft for the same behavior, and Apple IS the new Microsoft.

It would be helpful if as a developer if I could at least direct users in my apps to my websites to capture income.

Do you think Apple shouldn't able to create apps or services that compete against existing apps? What about grocery stores that carry store brand items along side name brand items? (copied from above)

Microsoft does do the same behavior, as does google. Their mobile app stores take a cut of apps sold on the stores.

To your last point: Do you think that Walmart should be forced to hang an LG TV on the wall with the rest of their TVs that displays a message to order it on LG.com? Of course not. So why do you think you should be able to bypass Apple's cut? You wouldn't have iOS apps to capitalize on without them.

Chargin 30% as a one time fee for every app you sell is something. Charging 30% for a service Apple doesn't run it's a whole other story. It's wrong and Apple has to stop now that they have a service of their own.
Why does a reoccurring cost change things? You think if I created a game it'd be okay for them to take 30% if I sold it for $10 but not if I charged $0.99 a month? Its a store; stores sell products and services to earn revenue/profit. Why should Apple, at no cost, offer and support a service that is generating revenue because of them?

Because it is completely different and thats why its under investigation by the FTC and retail stores aren't. Maybe I'm wrong and you really do have a better understanding of anti-trust law than the Federal Trade Commission......

How is it completely different? How is it any different from a store selling its own soaps next to Tide and Gain?

A 30% commission is excessive. But the Apple zealots will defend it no matter what, just like any religious cult. In their eyes Apple can do no wrong, regardless of the number of times they're found guilty for price fixing. Inflated commission only means an inflated price for consumers, but some people are happy to get ripped off it seems. They're perfectly content to defend a greedy corporation over people, a business which abuses tax code loopholes to receive welfare for the rich, tax shelters for tax avoidance, which also inflates our currency, even though they already have more cash reserves than the US Treasury.

30% is the industry standard. Its the same as the Google play store, the windows mobile store, steam, etc. It's also less than the markup on many goods you'd purchase online or in store. Apple follows tax law. They are also the largest corporate taxpayer. There is nothing wrong or immoral about minimizing your tax liability in accordance with the law. Do you give more to the IRS that you are liable for? Why should they? If you have problems with how much they pay in taxes you should take it up with your Congressman as tax reform is needed.

What is Spotify going to do next? Demand that Apple separate the Apple Music subscription service from their music app and not allow it to be preinstalled on iOS devices?

If you read what I've written above then you'll see I'm on Apple's side on this one. What you said though is the only reasonable demand they could make. It being preinstalled is the only way Spotify could claim its anti-competitive or that anyone could really relate it to Microsoft/Internet Explorer. But it really isn't preinstalled. Music has always been an App on iOS and an Apple Music subscription isn't automatic when you activate an iPhone. Maybe Apple Music being part of the Music App is the problem.
 
  • Like
Reactions: mackiwilad
That fee would suffice if you are not charging iPhone users for your product.
If you want space on any storefront (virtual or not), you must pay for it. If Apple ever decides to sell the iPhone on Amazon, they'll have to pay Amazon commission. That's how it works. It's ridiculous that were having this as an argument. I do agree that 30% is too high, but arguing about eliminating the fee entirely is disingenuous.

I don't think anyone's saying that Apple should just give everything away sold through the App Store out of the kindness of their hearts. They're running a business, and commissions are expected. The 30% cut per app sold might be a little steep, but it's still reasonable. They're paying for the hosting after all. Giving it store space.

What isn't reasonable is Apple taking a 30% cut of all subscription fees run through the app store in perpetuum. If it were for a set time, that'd be fine. It'd be like their commission, since most service apps are free to download. But to do it for all time, regardless of if it's used on an Apple product or not, is ridiculous. They're taking a 30% cut of a company's profits without having done anything expect initially host the app.
 
I remember when Google was being looked at for favoring certain results in searches so they could promote their own services, or those of paid advertisers. I also remember people basically saying: It's Googles search engine, they can run it however they like.

Now Apple is running the App Store that they own how they like, and people are upset?

What a bunch of hypocrites (you know who you are).
 
Who's getting rich in the App Store?

What kind of daft question is this?

People who are getting millions from their apps in the AppStore. Like the Angry Bird guy with countless of others. But who am I telling this? You are very well known to be extremely nitpicking when it comes to Apple around here. It's almost like you have an agenda or something!
 
Apple doesn't own the market, unlike Microsoft at the time, Apple is nowhere near a monopoly position. Microsoft used their near monopoly of the desktop OS to try to win and capture the browser market.

Android devices comes with the Gapps preinstalled, they can't be removed without rooting the device, and they have a larger market share, so why single out Apple when it's more appropriate to scrutinize Android in terms of market share.

Not a fair or proper comparison. Android is an open source OS used on a multitude of products from a slew of manufacturers. Apple is a closed ecosystem both hardware and software.
 
Do you realize that YOU would benefit from this investigation?

remove the competition and prices go up. Why are you defending apple so hard without even knowing the facts? Nothing has happened yet, all that has happened it's popped up on the FTC radar.

Apple is doing something different ! Show me the other Apple made apps that Apple has sold to you. I thought all the Apple apps were free.... I might be wrong
No one is removing competition by another player entering it.
 
There are a couple things to consider here. One is that the store actually purchases those items at a set rate. Apple has brick and mortar stores that do this. Apps don't work that way. Apple effectively takes a commission. They do not purchase the product at any point.



The way you wrote 200k/hr suggests you aren't computing in US dollars. People generally read 200k as 200,000 USD. Even $200/hr seems highly unlikely. That would be over 400,000 USD before benefits. I get the issue of office space and support, but you don't really give any indication of how you arrived at that figure. You also don't mention what leads you to believe that the app store is barely profitable.
You do realize that the cost of an employee is around double the salary that is paid out. I meant $200/hr.
 
Just because they know the rules beforehand does not make the practice legal in the eyes on government antitrust.

Remember when they got Microsoft for putting their browser bundled with Windows? Competing browser knew this was the "rules" that Microsoft had set.

Not saying it's legal or not, I am not an antitrust lawyer or investigator, but there are a lot of things that Apple are doing that is borderline antitrust in my eyes, looking at past issues that they have done.

From my view, I do see antitrust violations with competing paid services. They provide an in-app purchases in their own product, yet they levy a fee of 30% of subscription costs for same thing to competitors. It's not a matter of "they know the rules".
Did the government get MSFT for the browser? No. They tried to and ultimately failed and IE 6 became the #1 browser for years after the fact. That was good for no one even MSFT. This is why I think the government doesn't always need to insert itself when the markets haven't been given a chance to work.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.