Microsoft Says Antitrust Regulators Should Review App Stores

[MacRumors]

Antitrust regulators are currently investigating competition in digital marketplaces, focusing on Facebook, Amazon, Google, and Apple.

Microsoft is not involved in the investigation, but Microsoft joined the conversation today when president Brad Smith said at a Politico event (via Bloomberg) that it's time for regulators to take a look at app stores. Smith was careful not to name Apple or Google, but those are the two companies that have major digital software marketplaces and that are the focus of the investigation.

"They impose requirements that increasingly say there is only one way to get on to our platform and that is to go through the gate that we ourselves have created," Smith said. "In some cases they create a very high price per toll - in some cases 30% of your revenue has to go to the toll keeper."

"The time has come - whether we are talking about D.C. or Brussels - for a much more focused conversation about the nature of app stores, the rules that are being put in place, the prices and the tolls that are being extracted and whether there is really a justification in antitrust law for everything that has been created," Smith said.

Microsoft distributes apps through the App Store and Google Play stores and has a vested interest in lowering the fees that app developers must pay. Microsoft pays Apple 15 to 30 percent for any customers who subscribe to Office 365 through Apple's platform.

Some app stores, says Smith, have created "higher walls and far more formidable gates" than what existed 20 years ago when Microsoft itself lost a Windows antitrust case.

Apple is facing an antitrust investigation in the United States, which is nearing completion, as well as a separate investigation in the EU that was just announced earlier this week. Both investigations are looking at App Store fees and the competitive advantages Apple's own apps have on Apple platforms.

Article Link: Microsoft Says Antitrust Regulators Should Review App Stores

 

[wilhoitm]

OMG! Microsoft going after Apple for Antitrust! 🤣

 

[Seoras]

It's largely because of the security failures of the Windoze system that we have app stores today.

 

[SpeMarX]

Uhh... Doesn't the Xbox force you to download games only from their store while they get a 30% cut?

 

[glitched79]

Why can't we as consumers make a decision about whether or not we want to participate in a "walled-garden"-style computing environment. If yes, I'll stick with Mac. If no, I'll switch to Windows.

 

[DanGoh]

I'm annoyed how people pick and choose which monopolies/duopolies to scrutinize. There are alot of industries that are very uncompetitive because they keep allowing companies to buy out others, mergers to occur, and let companies continue to dip their toes in other sectors of markets.

 

[NickName99]

Oh this is rich coming from Microsoft.

 

[jimbobb24]

“The government should investigate our rivals.” Ok buddy! I guess it’s cheaper to use the govt to wipe out your competition that making great products.

 

[slamuelrock]

I wish they'd leave it alone. Consumers who want a walled garden with all of its pros and cons will choose Apple, otherwise they'd choose an Android.

 

[Baymowe335]

There are sooooo many others ways consumers are harmed than this nonsense. Utter waste of time.

 

[now i see it]

There's no doubt that a 30% tax is outrageous.
Personally, for me as a consumer who hasn't purchased an app in years, I couldn't care less.

 

[TVOR]

Hey MacRumors...can you please stop with all of the Anti-trust articles today?! Can't you just merge them or something? This is getting ridiculous!

And of course, the dog piling is getting ridiculous as well! I sometimes wonder if there are people whose only job it is is to sit in front of a screen all day, jacked to their eyeballs on caffeine and Adderall, just waiting with an itchy trigger finger for whatever the cause du jour is so that they can awaken the Twitterati and woke Corporate Comms departments who can then make sure they respond in an appropriate time so that all of the world knows how much of a social conscience they have...

Let people have some control of their own businesses, thoughts and lives again please...we don't actually live in a Socialist Utopia, in spite of the best efforts of many to try to impose that. Businesses and people are still free to (within the confines of the law) think and do whatever they want without having to "bend the knee" to the demands of a perpetually offended mob!

 

[ruka.snow]

Well since they don't have one anyone cares about, I am not surprised. Though Steam set the 30% and everyone(including Apple) followed this and it has only recently been some big companies that don't want to pay the same rate as a smaller developer. However, I strongly support anti trust investigates and if something untoward is happening or there are anti competitive practises I hope it is cracked down on.

 

[TakeOFF250]

Wow! Can we get the cut Microsoft take on xbox digital games? Do we want Apple to start selling Apple live gold for 59.99$/year to play with friends online?

If I make a movie, is Netflix in the obligation to distribute it and give me a 70% cut?

 

[PJWilkin]

There's no doubt that a 30% tax is outrageous

Let’s go back to the old days of Physical software box sales
You’d be lucky to make 40% , now you make 70%

Apple may charge , but remember how many apps are free
And for which they provide have hosting and download bandwidth costs

 

[Wags]

Coming from a company that wanted to control the world with their OS and tried/wanted control over the internet with IE.

 

[The Phazer]

I wish they'd leave it alone. Consumers who want a walled garden with all of its pros and cons will choose Apple, otherwise they'd choose an Android.

If walled gardens didn't have an impact on the rest of society then fine.

But they do. They get protesters killed in Hong Kong. They get sexual content banned from Tumblr because of concerns about App Store rejection (even if that's because the executives misunderstand the horribly, horribly vague rules). They push up pricing on services for everyone. They are toxic.
[automerge]1592515101[/automerge]

Wow! Can we get the cut Microsoft take on xbox digital games? Do we want Apple to start selling Apple live gold for 59.99$/year to play with friends online?

If I make a movie, is Netflix in the obligation to distribute it and give me a 70% cut?

An ISP is obligated to distribute Netflix's content rather than just block them and distribute their own unless they get 30% of Netflix's revenue. Which is probably a better comparison.

 

[nutmac]

I hope Apple will address these during WWDC.

I think most people would agree that 30% is too high.

At the same time, Apple deserves to be compensated for creating platforms, development tools, hosting, marketing, and so on.

Apple should provide 2 new options:

1. 15% cut on 1 year or longer subscription. 15% reduction still applies to shorter subscription after 12 months.
2. 5% cut if the developer foregoes App Store billing (e.g., Basecamp's Hey app). These app won't be "featured" on the App Store. Apps can be submitted and downloaded, but it will not show up on the search results (not even as search ad) and featured listing. It can only be linked from another website.

 

[ThaGoochiestMane]

Coming from a company that wanted to control the world with their OS and tried/wanted control over the internet with IE.

As opposed to the COMPUTER COMPANY that created a CREDIT CARD, prevents competing browser engines on iOS, and literally markets off of the fact that their products & services work together better than the competition.

Microsoft is no saint, but lets not pretend like Apple is.

 

[Wiesenlooser]

No, you can also buy in stores

Uhh... Doesn't the Xbox force you to download games only from their store while they get a 30% cut?

 

[ThaGoochiestMane]

Uhh... Doesn't the Xbox force you to download games only from their store while they get a 30% cut?

Download yes. But this is the important part: you can also buy them in stores, which is something you can't do with iOS apps.

And if you're truly against Microsoft's practices with the Xbox store, aren't you also mad about Apple's similar practices? Considering many more people use Apple phones than use Xbox consoles, it seems like it would be an ever bigger problem...

Or was that just whataboutism in the hopes to excuse Apple's anticompetitive behavior?

 

[mariusignorello]

Why can't we as consumers make a decision about whether or not we want to participate in a "walled-garden"-style computing environment. If yes, I'll stick with Mac. If no, I'll switch to Windows.

You’ll make that decision when you buy your next phone. Android or iOS.

 

[cycomiko]

Uhh... Doesn't the Xbox force you to download games only from their store while they get a 30% cut?

So when I go into my local game store and buy an Xbox One disc, its forcing me to use the microsoft store? How does this work in your head?

 

[TakeOFF250]

IT,

If walled gardens didn't have an impact on the rest of society then fine.

But they do. They get protesters killed in Hong Kong. They get sexual content banned from Tumblr because of concerns about App Store rejection (even if that's because the executives misunderstand the horribly, horribly vague rules). They push up pricing on services for everyone. They are toxic.
[automerge]1592515101[/automerge]


An ISP is obligated to distribute Netflix's content rather than just block them and distribute their own unless they get 30% of Netflix's revenue. Which is probably a better comparison.

In what way an ISP a better comparison? Does an ISP provide a development platform? Credit card processing for app purchase? Refund policy? Marketing tools? I'm a dev and I have to pay for AWS hosting even if i make no profit sometimes. Apple store is the perfect place for small developers and everyone is now falling in the David Heinemeier Hansson "Hey" marketing trap, it's funny to watch!
[automerge]1592516584[/automerge]

So when I go into my local game store and buy an Xbox One disc, its forcing me to use the microsoft store? How does this work in your head?

I hope you know that Microsoft is getting a big cut on that sale too!

 

[ThaGoochiestMane]

Hey MacRumors...can you please stop with all of the Anti-trust articles today?! Can't you just merge them or something? This is getting ridiculous!

And of course, the dog piling is getting ridiculous as well! I sometimes wonder if there are people whose only job it is is to sit in front of a screen all day, jacked to their eyeballs on caffeine and Adderall, just waiting with an itchy trigger finger for whatever the cause du jour is so that they can awaken the Twitterati and woke Corporate Comms departments who can then make sure they respond in an appropriate time so that all of the world knows how much of a social conscience they have...

Let people have some control of their own businesses, thoughts and lives again please...we don't actually live in a Socialist Utopia, in spite of the best efforts of many to try to impose that. Businesses and people are still free to (within the confines of the law) think and do whatever they want without having to "bend the knee" to the demands of a perpetually offended mob!

Based off your choice of language, I get the impression you "sit in front of a screen all day" and posts comments telling sites to stop reporting on the things you don't want to hear.