I thought we were talking about the use of Apple’s IP. What does that have to do with whether an app is “free” or not? If Apple deserves compensation for use of its IP then that should apply to every developer not just those that offer IAP.
What you’re talking about is not IP. What you’re saying is developers are only successful because of Apple and thus Apple deserves a share of their success.
Apple's IAP process is basically how Apple collects its licensing fee from developers for the use of Apple’s intellectual property. It's just that the way it is structured, some developers pay more, some pay less, and some don't pay a cent at all. As I have also pointed out earlier, I don't think this is a "bug" from Apple's perspective. It's by design to incentivise as many developers to release apps for the App Store as possible, knowing that they don't need to fork out a cent if their venture doesn't pay off (because only the successful ones need to pay Apple anything).
One observation is that, yes, huge companies like Facebook or banks don't pay Apple a cent, despite their companies making billions of dollars a year, because their apps don't facilitate any digital transactions (or at least, not the sort that Apple can directly monetise). I can acknowledge that as a potential loophole, while also maintaining that it may not be feasible for Apple to attempt fixing this "loophole" without also catching other smaller developers in the crossfire (ie: any attempt to "tax" Facebook may end up affecting the latter group as well).
You are free to propose other alternatives, but I recall there also being a ton of backlash when Apple proposed the core technology fee (then again, that was in the EU; this is primarily an US-specific ruling).
I refer you to page 151 of this document.
www.documentcloud.org
First, and most significant, as discussed in the findings of facts, IAP is the method by which Apple collects its licensing fee from developers for the use of Apple’s intellectual property. Even in the absence of IAP, Apple could still charge a commission on developers. It would simply be more difficult for Apple to collect that commission. Indeed, while the Court finds no basis for the specific rate chosen by Apple (i.e., the 30% rate) based on the record, the Court still concludes that Apple is entitled to some compensation for use of its intellectual property.
As established in the prior sections, see supra Facts §§ II.C.,V.A.2.b., V.B.2.c., Apple is entitled to license its intellectual property for a fee, and to furtherguard against the uncompensated use of its intellectual property. The requirement of usage of IAP accomplishes this goal in the easiest and most direct manner, whereas Epic Games’ only proposed alternative would severely undermine it. Indeed, to the extent Epic Games suggests that Apple receive nothing from in-app purchases made on its platform, such a remedy is inconsistent with prevailing intellectual property law.
It can be argued that yes, to be a successful developer, you first and foremost need a good app that users are willing to pay for, but as far as iOS is concerned, having a good app will only matter if you can get it in front of as many users as possible, and more importantly, make them want to pay for it.
Take malware for example. I will argue that one consequence of Windows being an open platform is that it massively suppressed the market for third-party applications (and the ironic thing is that people are now flocking to massive app storefronts such as Steam, when they could easily be downloading their games from standalone websites and letting developers keep 100%).
Consumers on desktop platforms didn’t suddenly get smart about apps, thanks to the pressure of competition; they simply stopped downloading and installing apps on Windows altogether. One of the great triumphs of the iOS App Store, I feel, is the fact that it conditioned consumers to feel safe and secure about downloading and installing apps, thus dramatically expanding the market for developers. And if they sell more apps thanks to the way Apple has structured every aspect of iOS, does Apple not deserve something for the role it has played in all of this?
Maybe not 30%, but definitely not zero either (as we now await Judge's Yvonne's latest ruling). 😬