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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".

Back then Microsoft had 90% of the desktop platform. Apple came into a market that was already well established by cell phones and had to compete with the biggest names such as Nokia & Blackberry. We still have more Android phones on the market than Apple so no monopoly exists.
 
It sort of depends on whether this is really a "store," doesn't it? If you buy an iPod at Target, it's the same price as at the Apple store, and Target is getting a small margin on it, so Apple is getting less. In that sense, Apple just has a really premium retail space that they've managed to dictate terms very favorable to themselves in.

So is this Apple charging Spotify 30%, or is it just the markup on the product, and Spotify is willing to sell their product for $6.99 to Apple at wholesale, but $9.99 to you?

Spotify costs 9.99, on the appstore it costs 12.99
 
Spotify is basically telling me they can't afford the 30% and they are probably going out of business soon, and they will be raising the rates on the Apple Store to cover their costs. Maybe they should have baked in the 30% when they offered the plans there initially. Did they just discover 30% is too high, and if that is the case, it means they are probably not going to last much longer.
 
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Basically, this. That's like expecting retail stores to sell at wholesale prices? Why should this be any different?

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......
 
I don't have an issue with Apple taking 30% on purchases of apps, but they need to either reduce the amount they take from monthly subscriptions or allow developers to show in apps where they can purchase the subscription 30% cheaper at the developers site.

Taking 30% per month for doing very little is a ripoff, I make a point of never ever subscribing through app store apps

Apple may not do much initially for its developers of apps or services. Indirectly it does a lot for them. Apple made its platform very attractive for its customers. It took a couple of decades from the first iPod on the market. It took money, the right decisions, buying the right companies, took all the right steps to get where they are today. So they have every right to make a profit from people who want to make money off of the Apple platform. If you think they charge too much, these developers can go elsewhere. If they really thought it was too much they would be leaving in droves and Apple would probably lower fees to get them to come back. But free market often will balance itself out.
 
The government needs to stay out of it and let the free market sort this stuff out TBQH. I hate when the government gets involved in picking winners and losers with the interpretation of the law. Apple's 30% cut is standard retail practice. The maintenance of such a HUGE app ecosystem alone is a HUGE expensive undertaking. The 30% covers the cost and offers Apple what is at best a slightly above break-even proposition. Apple has not done anything wrong to Spotify other than offer up more competition in the music streaming market seeing as Spotify's efforts to get users to stream their music have been unprofitable for pretty much everyone involved.

That would work out great, we'd end up in a world where there was one supermarket chain, one restaurant chain etc.. i'd be like Demolition Man where there is only Taco Bell :)
 
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......

"While the FTC is looking into the App Store rules, there's no guarantee they'll launch a formal investigation as antitrust lawyers that spoke to Reuters were split on whether Apple is breaking the law."

My understanding is as good as the understanding of the lawyers involved, it seems.
 
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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.
 
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FTC looking into Spp Store Rules is more about showing Apple and spotify etc that there is regulation and that big brother is keeping an eye on 'fairness'
 
That has nothing to do with Apple taking a 30% cut. It's because people don't want to pay for software. Just Like all the debates out there now over advertising. People whine and complain about ads on websites but nobody wants to pay for content. It's hard to make money with consumers want things for free.

That's why I asked who was getting rich as another user claimed. I never mentioned Apple's cut.
 
FTC looking into Spp Store Rules is more about showing Apple and spotify etc that there is regulation and that big brother is keeping an eye on 'fairness'
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?
 
I hope Apple loses this battle. microsoft got slapped for it's shady practices and Apple should get slapped as well.

Because Apple owns the marketplace the competition is rigged in their favor. They have an unfair advantage over their competition. This practice has to change.
 
I hope Apple loses this battle. microsoft got slapped for it's shady practices and Apple should get slapped as well.

Because Apple owns the marketplace the competition is rigged in their favor. They have an unfair advantage over their competition. This practice has to change.

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.
 
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.

Everything else is always more appropriate than checking into Apple's business practices.
 
My understanding is that if a developer wishes to use In-App Purchases to make extra content available, then Apple will host that content. So the 30% fee not only covers payment, setup, retail display etc., but also hosting costs.

But Spotify surely hosts all its content itself. This is why a flat 30% fee seems so iniquitous to me. I feel that Apple should have a much lower fee, maybe 5 or 10%, if a developer wishes to manage the hosting of content.

There is a world of difference between a tiny developer paying 30% on an IAP which provides a few extra features, all hosted by Apple, using virtually no storage or management, to a mammoth video streaming service like Netflix which uses vastly more resources.
 
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