I will never understand why app developers feel that the infrastructure their apps use should be provided to them for free. That’d be like if I wanted to sell iPhones in a fancier box and expected Apple to give me the iPhones for free.
This is not a reasoned opinion and parrots the sort of nonsense that lead to us paying more for digital music (during the iTunes years) than physical media.
A physical object like the iPhone in your example has a cost. A cost to produce, to ship, to store. It is an object. If I take it, you no longer have it. If I take it for free, you, as a producer, have not been fairy compensated. Digital goods, like access to an API, do not have fixed costs. Serving ten API calls does not cost 10x one API call.
Which is not to say there is zero cost to a company like Reddit (or Twitter, or whomever) for providing access to its API. There are infrastructure and support costs, in addition to managing that API access. No one is arguing, I bet not even the developer of Apollo, that being charged for that access is on its face unfair. What
is unfair is charging a usurious price that has no relationship to actual cost, or even reasonable cost.
Look at it this way: Let's say Apple charges $1000 for a fancy new iPhone 37 when you buy it from Apple. But what if Verizon approached Apple and said, "We want to sell your iPhone 37, how much?" and Apple said, "Actually, for you, it's $1500." Would that be fair? Of course not. And in fact, that sort of pricing shenanigan for physical goods is illegal.
What is the fair price for Reddit to charge for API access? I don't claim to know. But charging $20M to Apollo makes it clear Reddit's end goal has nothing to do with equitable pay for access, but rather limiting the marketplace.