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I think people have a fundamentally misunderstanding about what the fees Apple charges are for. People pejoratively refer to it as a tax; but there’s nothing shameful in it being a tax. Like how your federal taxes subsidize the running of a government (just go with me here, Libertarians), Apples fees subsidize the platform.

How would you monetize iOS development if you didn’t want to run iOS as a loss leader for iPhone sales and encourage continued development? Charge end users a monthly subscription to access the store?? Increase the fees for all developers, including those who create free or low-cost apps? Currently, Apple has a progressive tax scheme wherein only developers who have digital sales (mostly large developers) subsidize the platform.

For example, we appropriately applaud Apple for their investment in accessibility features in iOS. The R&D costs for some of those implementations would be cost-prohibitive for any single developer. But developers benefit directly since it expand their addressable market or allows them to retain users who have become disabled. Because iOS is the most profitable mobile platform, such investment is allowed by shareholders who would otherwise question the ROI.
Without seeing Apple's books, no one can know what they use the money for. We don't know if Apple could charge 5% commission and that might cover all the fees of running the App Store. The profits from the iPhone by themselves likely cover all the costs of iOS development and then some. Apple's gross profit in the quarter ending September 30, 2023 was $40.427 billion on revenue of $89.5 billion. Don't know what the net profit is, but once source said they had cash reserves of $61.55 billion at that time, while another said $162 billion; either way, it's not unlikely that they could get away with dropping their commission if they wanted to. Like I said in my previous post, I think it's a fundamental philosophical issue with them that it be at or around that 30% number.

And I have no problem with that. I don't know what the right commission is. I don't know what reduction would pacify any regulators who think Apple is being, what was the term? "Maliciously compliant"? (I'm too lazy to look it up.) I just think their stance might come back to bite them.
 
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What sort of rules would you suggest? That any platform can't add features or sell additional functionality? What if Apple Music was there first and Spotify came along second? Does AM have to go away?
If I could make the rules, I see two possibilities. Either all music services compete on fair grounds. This would mean Spotify can use and advertise their own payment solution. Or second solution, Apple can't compete in Music at all. The second option is of course not desirable. We are talking about the App Store here, but the same of course also applys to Android.
 
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There you proved, you now nothing about that and you just blindly hate on EU without knowing any context whatsoever.

Which companies were designated as Very Large Online Platforms (VLOPs) under the Digital​

  • X (Twitter)
  • Wikipedia
I eagerly await regulations for Wikipedia....lol. Regulations in every country are not consistently enforced. Mood, politics, money, etc all influence whether some company faces regulations or not. But I am glad the EU has its eye on wikipedia. So sick of them asking me for money...the EU should force them to carry ads;)
 
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You’re complaining the MS isn’t being regulated for their gaming marketshare, but that Apple is for their mobile marketshare. If that’s not the case, feel free to clarify.
No, I'm not. I'm discussing your use of a duopoly as a justification for regulation. I was just using Xbox as an example since you claimed they weren't regulated because they aren't in a monopoly or duopoly.

Assuming what you said Google is doing is true, then the EU should definitely do something about that.
Which has been my argument for years.

If you think that means Apple gets off the hook here, then you haven’t thought this all the way through. If the EU did something about it, either things would continue as is, just without the anti-competitive agreements, or these other smartphone makers will all develop and sell their own phones with their own OS. However this means Apple suddenly has marketshare several times that of its next closest competitor, rather than roughly equal marketshare. I don’t think that bodes any better for Apple in escaping regulation.
I think your marketshare numbers are way off there. But, again, you are the the one that has repeated used the duopoly to justify regulation. My point is that your claim is unreasonable based on Google actions.
 
Apple would have a much lower market share if there were more competitors in the smartphone OS market. Apple does not prevent competitors from entering the smartphone OS market. Google does engage in anti-competitive practices that prevent competitors from entering the smartphone OS market.

All paths lead back to Android when it comes to how uncompetitive the smartphone OS market is.

How significant that would be is a wild assumption on your part, particularly how diehard Apple users tend to be. Additionally, if Apple actually believed their marketshare would be significantly lower under such a paradigm, presumably they would be all for Google’s anti-competitive actions.
 
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This is a much bigger question than Apple. It impacts all retailers and platforms. Store brands for example are often 1/3 the price of name brands. How is that fair?
But there are massive amounts of stores a consumer can go to. On Apple there is only one store. It's not a good analogy.
 
Yes but you don’t have to download said app or App Store
You dont have to drink water. You dont have to have a phone.

But in practical real world....you will have to do it. Some corporate app you need, or school needs, or something will force you in the practical sense to do it. This changes everything for everyone...it takes away choice from the majority of consumers.
 
Which companies were designated as Very Large Online Platforms (VLOPs) under the Digital Services Act?
You couldn't even figure out we were talking about gatekeepers, not VLOPS. Please be better at following discussion context next time.
 
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What’s more difficult about it? Would you as a consumer rather use a native app or a web app hosted in Safari?
You already stated that a cloud based game is just data streaming over an internet connection so it obviously wouldn’t make a difference to the consumer.
 
If your app is really better, users will justify +30% subscription. Paid camera apps, book readers, audio players somehow manage.
Just because some users may stomach an extra 30% doesn’t magically make it a fair market. In fact, Apple could mimic whatever those superior features are for their own app and now who would be willing to pay the premium? At the end of the day, you can’t be both a referee and a player.
 
Apple is evidently hampering compeition in the following spaces:

- Favoring it's own music subscription
- Favoring it's own ebook app
- Payment apps (by forcing everybody to sign up to Apple Pay)
- Wireless headphones, by not giving access to certain APIs
- Browsers

I'm sure there are more expamples.
Wouldn't you do the same if it was your company?
Or would you rather prefer to work hard to favor your competitors?

competition /kŏm″pĭ-tĭsh′ən/

noun​

  1. The act of competing, as for profit or a prize; rivalry.
  2. A test of skill or ability; a contest.
    "a skating competition."
  3. Rivalry between two or more businesses striving for the same customer or market.
Source: The American Heritage® Dictionary of the English Language, 5th Edition


Based on some people's perception, usually those who are ahead of the pack "are not fair!".
Enough crying "Mommy!".
 
Just because some users may stomach an extra 30% doesn’t magically make it a fair market.
Fair = everyone pays 30%. Idk if there is even a single Apple app that is #1 in its category.
In fact, Apple could mimic whatever those superior features are for their own app
And that would be a thing for anti-trust trial. But they aren't eager to copy apps, they usually provide vital, but basic barebone functionality.
 
It sounds awfully like what I proposed a few weeks back: Storefront owners (who are also hosting) distribute their shops via the App Store. Upon submitting an app, developers can choose which storefronts they want to apply it to, declining the app store if they so wish altogether. All apps still have to go through Apple's QA program.

Whilst this does still make Apple 'gatekeepers' in the sense of still swatting away apps that don't meet its own rules it does mean that users can pick alternate storefronts and be confident the apps meet requirements. It also means devs can be sure that hacked versions of their apps that sidestep subscriptions (eg Spotify) that litter current app fronts do not make the cut. Its not really any different to the EU applying minimum safety standards on all products sold in its borders.

Counter-suits from the EU would depend on Apple's cut of sales outside its domain. If its still doing QA then they have a right to charge some commission although 27% is somewhat taking the nuts.
I am amused that you think Apple does QA on an app. They insure apps don’t use forbidden APIs, they don’t infringe on Apple products and a few other things their tools can automatically detect. Apps are still chock full of bugs.
 
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No, I'm not. I'm discussing your use of a duopoly as a justification for regulation. I was just using Xbox as an example since you claimed they weren't regulated because they aren't in a monopoly or duopoly.


Which has been my argument for years.


I think your marketshare numbers are way off there. But, again, you are the the one that has repeated used the duopoly to justify regulation. My point is that your claim is unreasonable based on Google actions.

Xbox isn’t part of a duopoly. It is clearly a dominant player though, which in the EU should meet the bar for regulation. No need to go as far as a monopoly/duopoly. You didn’t answer my question though. What the value of the mobile apps market in the EU and what’s the value of the gaming market?
 
Without seeing Apple's books, no one can know what they use the money for. We don't know if Apple could charge 5% commission and that might cover all the fees of running the App Store. The profits from the iPhone by themselves likely cover all the costs of iOS development and then some. Apple's gross profit in the quarter ending September 30, 2023 was $40.427 billion on revenue of $89.5 billion. Don't know what the net profit is, but once source said they had cash reserves of $61.55 billion at that time, while another said $162 billion; either way, it's not unlikely that they could get away with dropping their commission if they wanted to. Like I said in my previous post, I think it's a fundamental philosophical issue with them that it be at or around that 30% number.

And I have no problem with that. I don't know what the right commission is. I don't know what reduction would pacify any regulators who think Apple is being, what was the term? "Maliciously compliant"? (I'm too lazy to look it up.) I just think their stance might come back to bite them.
Epic charges 12% in their store and have stated in a court case that they don’t generate a profit so you can safely assume that 12% and below wouldn’t be profitable for anyone.
 
No, I'm not. I'm discussing your use of a duopoly as a justification for regulation. I was just using Xbox as an example since you claimed they weren't regulated because they aren't in a monopoly or duopoly.

You are correct: being a monopoly or duopoly or whatever has nothing to do with this specific regulation. The regulation specifies criteria to evaluate whether a vendor qualifies as "Gatekeeper" and which regulations apply to said Gatekeepers.

I believe the criteria Xbox or Sony PlayStation fail to meet is likely the "10k yearly active business users". That would require e.g. at least 10K different users selling games to consumers on the Xbox or PlayStation store per year.

While those stores are big, they actually have a minuscule amount of games and individual game publishers compared to the number of Apps and App publishers on the App Store.

As example I think there are less than 10k individual games on these stores, which means a far lower number of individual publishers as multiple games are sold by the same publisher. For comparison, the App Store hosts literally millions of Apps with hundreds of thousands of individual publishers.

PS: Xbox or Sony PlayStation might not be Gatekeeper but definitely enjoy market dominance, so they might be subject to the regulation relevant to that.
 
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Do smartphone users need to be told that app companies have web sites or a social media presence?

Do smartphone app developers need to be forbidden from it? Couldn’t the argument be made that it’s fine either way, so why be so draconian as to draw more unwanted attention from regulators?
 
Or would you rather prefer to work hard to favor your competitors?

Fair point. But who are the competitors. We are talking about thousands of developers who create apps and make the platform as valuable as it is today. A naked iPhone OS is a rather dull experience. It's the app ecosystem that makes it interesting. The interests between Apple as a hardware company were perfectly aligned with developers for most of the companies existence. But then Apple decided to invent the Services category on their balance sheet. Why? To make more money. Now suddenly the interests were not aligend anymore, and many developers are not happy.
 
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That's why, to have real and fair competition, you need a referee. In this case, it's the government.

Competition is more important than a free market.

Everyone can compete, just bring your products to the tournament. If you can't afford to compete, then stay out.
Just don't go lobbying and crying for help, just because you are not capable to accomplish what others have with their own sweat and effort.
 
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