They can get ask any fee they want as long as the alternative app stores are allowed. Then the competition will establish reasonable structure and level of the fees. If the alternative app stores exist, Apple can raise their fees to 90% as far as I am concerned.
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Korea to Investigate Apple and Google's In-App Purchase Practices
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There is precedence for breaking this up. Movie studios used to run their own theaters.
This made it difficult for people to start their own theaters or movie studios, so regulators had to step in and say that studios couldn't own theaters anymore.
If Apple doesn't want to fix this themselves, they may find regulators determining that the App Store has to be spun off into multiple competing stores that Apple isn't permitted to own.
If Apple simply permits third party app stores to exist and for developers to use other APIs for processing payments within apps, regulators may leave Apple and the app store intact.
Google can lose the scrutiny even easier - all they have to do is stop requiring the API for processing payments within apps distributed from the Play Store.
As an analogy for how immoral/criminal/stupid these In-App processing payment API requirements are, imagine that if phones sold by Walmart had to use Walmart Pay within their app stores. You bought your iPhone from Walmart? Walmart gets a 30% cut of all app sales on the phone.
I think it might be reasonable for Apple to require that apps using IAP must cost something to download from the App Store... Walmart doesn't give away Switches for free so that Nintendo can make up for it all on digital software sales afterwards without Walmart taking a cut.
This made it difficult for people to start their own theaters or movie studios, so regulators had to step in and say that studios couldn't own theaters anymore.
If Apple doesn't want to fix this themselves, they may find regulators determining that the App Store has to be spun off into multiple competing stores that Apple isn't permitted to own.
If Apple simply permits third party app stores to exist and for developers to use other APIs for processing payments within apps, regulators may leave Apple and the app store intact.
Google can lose the scrutiny even easier - all they have to do is stop requiring the API for processing payments within apps distributed from the Play Store.
As an analogy for how immoral/criminal/stupid these In-App processing payment API requirements are, imagine that if phones sold by Walmart had to use Walmart Pay within their app stores. You bought your iPhone from Walmart? Walmart gets a 30% cut of all app sales on the phone.
I think it might be reasonable for Apple to require that apps using IAP must cost something to download from the App Store... Walmart doesn't give away Switches for free so that Nintendo can make up for it all on digital software sales afterwards without Walmart taking a cut.
I think the free market should determine this, via competition. There needs to be options besides the iOS App Store. Epic says they can profitably operate a store only taking 12%, and they back it up by actually doing so on Mac, Windows, and Android.
They can't demonstrate it on iOS or game consoles - I'm not sure whether game consoles should be required to have third party stores or not. There needs to be a way to enforce DRM, but I think that can be done by having strict rules on third party stores, rather than banning them entirely.
Yes we definitely can count on people to read disclaimers just like they”read” tos and just how they blame themselves for a mistake they made and not Apple or google
Epic is a billionaire company, that wants to keep 100% of the profits for its apps.. so yeah it makes since to them to create an Epic Store that only has Epic and Unreal apps in it cause it would benefit them more. Epic is the wrong company to start this war against Apple. Let's say multiple App Stores can exist, who then determine that? Can I open up an App Store? I can see developers being scammed... In my opinion the subscriptions that dev's charge for an app more than makes up for the 30%. Prior to that apps were mainly free or a one time fee.
Future Apple move if they lose: Releasing new Swift update that does not grant all features to non-App Store apps.
They do that and next thing you see is anti-monopoly investigation (ala Microsoft) and a possible split of the company. Software development tools have nothing to do with the app store. Artificial linkage is not going to be tolerated.
Very excited to see the outcome of this investigation. If ruled against Apple and Google, it could lead to major changes.
Well, if this precedence is part of US history, then I have hope that the US investigations might actually lead to a fair and progressive outcome (i.e. intervene with Apple's app store monopoly on iOS devices )
Since you ask, I think about 5% would be reasonable. I find it hard to believe that running an App Store would cost anything like the amount of money they're charging developers. Unless support staff are driving around in Porsches.
Apple might retort that 30% of Epic's sale price helps subsidise App Store placement of the multitude of small apps that don't generate a lot of revenue. That would be a feeble argument because there are basically too many apps on the App Store as it is. There's a lot of dross to be found. If an app is good enough to be on the App Store, it should be good enough to earn its developer an income.
I definitely see Apple's point of view that App Store only helps (in part) to protect users. Otherwise, it would be far too easy to get hold of an app that clobbers your CPU or steals personal information or harms the operation of other apps.
But 30% is way too big a cut. It's not like Apple has to press discs or put software in boxes. With the status quo, they can just milk the system. Since there's no competition there's little incentive for them to reduce their cut. Public opinion is the only pressure they're facing.
And how do you propose to gradual system of fees? Small developers pay 30% while large company pays less?
It still leave the company with 70% revenue. That's not bad. They don't need to pay for any infrastructure cost to handle their app. (Security check, updating app on all users app (imagine the bandwidth) ...).
Epic should just accept Apple App store policy or leave. They're already making lots of money. Epic CEO is a reflection of Corporation greed.
Apple App Store is what, 10 years old. Per T Cook they never raised their fees. It was never an issue before. Why now?
Because a Korean company thinks it can dictate a successful American company policy. As if they don't have monopole within their government.
Apple charges 30% to handle everything. Code release to millions of devices (who pays for the bandwidth?). Hosting all these App, a infrastructure they did not pay for, people behind the service etc ...
Companies should say thank you to Apple for having simplified the Mobile App online store eco system. Google, MS copied Apple because they realize it makes sense. No more need to go to 10 different company to download an app or figure out when an upgrade is available. It automatic.
So Epic should shut up and appreciate what they have. 30%, that still leave you with 70% of profit.
It's a small fee considering Apple handles all the hard work behind it. Or maybe they should charge a company per App downloaded. Epic can increase their app buy-in on mac by 10% if they want, should compensate for the 30% they think is "outrageous".
Korean government is going to do what? Tell Apple to change their App Store policy ? Why don't they look into Epic business practice to stop this non-sense.
And there are other games better than Epic's game. Just saying.
Because a Korean company thinks it can dictate a successful American company policy. As if they don't have monopole within their government.
Apple charges 30% to handle everything. Code release to millions of devices (who pays for the bandwidth?). Hosting all these App, a infrastructure they did not pay for, people behind the service etc ...
Companies should say thank you to Apple for having simplified the Mobile App online store eco system. Google, MS copied Apple because they realize it makes sense. No more need to go to 10 different company to download an app or figure out when an upgrade is available. It automatic.
So Epic should shut up and appreciate what they have. 30%, that still leave you with 70% of profit.
It's a small fee considering Apple handles all the hard work behind it. Or maybe they should charge a company per App downloaded. Epic can increase their app buy-in on mac by 10% if they want, should compensate for the 30% they think is "outrageous".
Korean government is going to do what? Tell Apple to change their App Store policy ? Why don't they look into Epic business practice to stop this non-sense.
And there are other games better than Epic's game. Just saying.
Well, if the Government takes 50%, and Apple takes 30%, and then the Wife takes 20%.... what do I have left?
Zero percent?
Well, tell your government to not take 50%. Issue is with the 50% not the 30%.
Or build a system to distribute your application to Mac users (bypass App Store).
Epic does not have to use App Store. Adobe has their own App to manage download and updates. So did Native instrument 10 years ago.
They're just being greedy and think they can tell a foreign company to change their policy because what?
They're a game company? Who cares !
Game company comes and go.
There are policies. If you don't respect them, your account is de-activated. Which is what happened to them.
Exactly. It’s not like they didn’t agree to the initial terms and conditions.
Also people think Apple squash competition, however any company is free to make their own phone, OS and App Store to go with it. Go to town!
That’s the problem. They won’t change it because they don’t care. It’s “their platform their rules” and I partial agree. They built it so they should have the right to decide how much they charge. I also agree that their fees are outrageous. Cook is all about milking the cow as much as he can.
You have actually brought a great point I didn’t think about. 20% sales tax is indeed insane... 40%+ income tax is, as we like to complain, insane.
I’m going to calmly wait (until I become a dried up skeleton) for an antitrust, monopoly or similar hearing on governments having a piece on all global sales and global incomes of all the people... they don’t even have a two tier fee where the first year they charge you 50% but the second and up 25%!
I live in Canada where the sales taxes and income taxes are out of it.