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MacRumors failed to mention the penalty is only 3% for failure to comply. Apple could just tack on an additional 3% to the App store commission.
I hope they do, I love that they have size and scale not to be bullied. I'd love to see them pull out or a country.
 
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The Telecommunications Business Act will put users who purchase digital goods from other sources at risk of fraud, undermine their privacy protections

Good luck making that last part stick.
 
Apple’s commission covers a lot more than mere payment processing.

The commission is also staying. People associate the in-app payment system with the commission, but the system is just the current mechanism. Apple can easily require developers give 30% of their revenue from apps that are published in the store or use their SDK and development tools.

By the way, the fee apple charges is not a credit card processing fee. It also includes:
  • Global tax payments on behalf of developers along with all required reporting
  • First line support for application issues, including install and billing
  • Support for the App Store (operations, personnel, real estate, hardware, utilities, real estate taxes, etc.)
  • App Store review process and staff
  • Fee access to notifications servers
  • Free access to use of Apple Maps in applications
  • Free access to one petabyte of online storage for your apps' users' data
  • Free access to Testflight and developer app beta support
  • Funding for all developer tools which are free to use by all (Xcode, API, docs, etc.)
  • Funding for new features in iOS and API (e.g., Metal, AI/ML, HEIC/ProRaw, Portrait, etc.)
The $99 annual fee covers:
  • Deployment certificates necessary to submit apps to the App Store
  • Access to developer-beta-builds of all Apple products
  • Access to developer support (2 free per year)
  • Access to developer forums
We can argue all day long as to whether 30% is too high. Or even 15%. But we can all agree it is not 5%. A case could be made to have an itemized fee schedule. 6% for credit card transaction processing, plus tax accounting, and a little towards developer tools funding. An additional 9% to 24% includes all the rest. And everyone still needs to pay the annual fee anyway as they will need deployment certificates just like on Mac.

Exactly.

People who keep saying "credit card companies only charge 3%... so why does Apple charge 30%?" don't understand what you get from Apple's fee.

Sure... developers could setup their own payment processing in their apps through Stripe or Square or PayPal... but all they would handle is the payment processing.

Apple's fee currently covers literally everything it takes to build an app and sell it in their store. And Apple is still gonna charge something for that in the end.

Be careful what you wish for. Apple could decide to charge $5,000/month to be listed in the App Store and $10,000/month for access to APIs and whatnot. Is that better? For Netflix and Spotify, maybe. But say goodbye to every small independent app developer (who make up 99% of developers in the App Store)

A flat-fee percentage per sale does make sense. Developers don't have to pay much to get started in the the App Store... and they only get charged after they make a sale.

Maybe we can discuss what the percentage should be if 15% or 30% is too high. But Apple should get something.

Otherwise Apple will start charging developers hosting fees, bandwidth fees, API fees, AI/ML fees, TestFlight fees, etc. And I'm not sure that will be a net win for most developers.
 
Then only purchase apps that use Apple's infrastructure. If you never had a problem being forced to Apple's pay system, you still don't have a problem because you wouldn't be forced to use an alternative pay system or App Store. Just keep doing what you're already doing. Problem solved.
Actually incorrect, what’s stopping an app only accepting another pay system and not Apples? If an app you want uses a paywall you don’t want to use, you use it or never have the app.
 
Actually incorrect, what’s stopping an app only accepting another pay system and not Apples? If an app you want uses a paywall you don’t want to use, you use it or never have the app.
I've found some people will argue fervently against their own interests in an attempt to bring Apple down a peg or two.

It's like anti-vaxxers sticking it to the government.
 
Those payment methods are light years ahead. At least for the US. Not sure what country your from.
I am in Korea.

If you ever try to use any of those Korean payment methods, especially as a foreigner, you will understand how truly tedious it is.
 
Apple should take a stand in Korea, by banning all developers from operation under Korean Companies & rules. Any developers that want to continue selling their products through Apples Store should have to form a corporation in another jurisdiction, and operate their business from that jurisdiction. Otherwise lose the ability to have their products in Apples store. If I was the owner of a chain of stores, and the government came along and told me I had to carry producers products in my stores, but not make any money on the sales I would just remove those products from my store. And this also degrades the end users experience which is us. It is just a blatant profit grab by the producers.

It also effects Apple shareholders, the government is now taking money from Apple shareholders & giving it to the developers. An illegal transfer of wealth. This is wrong on so many fronts. I hope Apple takes a stand on this before it spreads to other countries. A perfect example of a government overstepping their authority and sticking their noses into businesses. Should never be allowed to happen.
 
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Otherwise Apple will start charging developers hosting fees, bandwidth fees, API fees, AI/ML fees, TestFlight fees, etc. And I'm not sure that will be a net win for most developers.
google cloud services for AI/ML is pretty cheap tbh. if developers want to use AI and ML they can pay for it. and hosting/bandwidth, lol, come on, it's 2021, these are pennies
 
lol, come on, it's 2021, these are pennies

Sure... but it's also pennies for Apple to provide their all-in-one solution, too.

Imagine if small developers were required to set up and maintain their own hosting through Rackspace or AWS, and manage payments through Stripe or Square, and give money to Google for their Maps APIs, and the time it takes to maintain every separate little thing like that. Time is also money.

Suddenly... Apple's 15% doesn't sound so bad!

:p
 
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Apple should just ban Korea from the AppStore
That way they will soon have to ban USA, whole EU, AU, UK and many more countries...
Where do you think Apple intent to sell their next iPhones? Tonga Bonga Island?

Apple better start developing for offering sideloading, alternative payment and open NFC, the deadline will be tight.
 
Apple should just ban Korea from the AppStore
If they do that, Apple will face anti-trust from EU, USA, and other countries. Since Apple vs Epic is still going on, it's just gonna give more advantages for Epic.
 
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lol, better a government than Apple. I mean, that’s clearly their thought process.

$64/billion a year is insane for the App Store, with all the scams that get through.
App store will always have scams as its simply so big, however, 64 billion dollars a year is buisness
Ok so there's 430,000 developers in Korea alone? Meaning Apple makes a cool $40M from developer fees alone - per year??

Holy crap. I've paid my developer fee for a good ... 10 years or whatever. But I had no idea this is serious revenue.

I mean - 40 million dollars. Apple is a Tn dollar company, but that's 40 million only for the country of Korea, per year! You can do a lot of things with 40M USD! That's 4 well funded startups!

Generally, I don't like governments doing anything since I don't believe they ever act in the interest of the people - even though they're great at making it appear as if they do, that's basically their only job, to sell their services as something that is actually useful, when in reality, it's not. Everyone would be better off without these corrupt clowns.

But Apple's tactics are bullying, dystopian, and overall too much - all of these app store policies made perfect sense at the time they were introduced, they were what made the app store really great. But they've been long overdue for an overhaul, I believe Apple should actually give these lawmakers way more than they're asking for and open up the space for a multitude of decentralized uncensorable app stores;

Even if that happened, people are so lazy I would bet that > 90% of users would still get everything from the Apple app store, just because it's easiest and most convenient.
It should have lower fees, a few trustable payment systems, and more employees checking the app store for anything wrong with certain apps then the App store will be great
 
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1:0 for the customers and developers.

The Saga Continues...
Screenshot 2021-08-31 at 21.27.28.png

...Darth T. Crook won't win!
 
I don't like this idea one bit... they should've instead forced Apple to allow installation of apps and other stores from outside of the App Store.

All this will do is give developers a free ride on the App Store, sideloading would've forced Apple to actually compete instead of just using their position as market leader to set the fees for the entire market.
 
They already do. Google’s fee is $25 one-time and Apple’s is $99/year.
That $99/year is not a per-app fee, that's for being in the developer program. Expect that if governments require other payment systems, and lots of developers move to supporting only those systems and not Apple Pay, the membership cost for the developer program will go up, and there will be substantial fees for putting an app in the store. Apple's not going to run the App Store as a charity. I think allowing other IAP mechanisms is reasonable, but I expect Apple will insist that Apple Pay also be offered, and I know a lot of iPhone users who would rather pay through Apple than entering credit card details or other payment credentials into every app they download.
 
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A bloody pity IMO. Fortunately I am old enough that I will not need any iOS programs that are outside of my current range with the possible exception of medical apps.

What I'll look for in the near future are 2 changes:

1. Apple will shift some of their Korean component production to other countries more friendly to Apple.

and:

2. Smart developers will make notations for potential customers that they are staying in Apple's Protective Payment System. Probably the same with existing customers. That tells me that I'll stay as safe as before.
 
It’s not a monopoly because there is significant competition and most of us prefer things nearly exactly as they are currently. I bought Apple’s products because they are closed and the simplicity they provide. Now the government is trying to force me to abandon one of the fundamental reasons I invested into Apple’s products.

My only suggestion to Apple would be to allow outside payments in “reader” apps. Otherwise, I vastly prefer the current system over any of these proposals. The current system is also much fairer to small developers.

In China, there are many different App Stores available that compete against one another on Android. What is the industry commission in China? 50%.
China is a communist and ruled under dictatorship. It's not a good comparison.

Competition between Apple and Google? That's why Epic sue Apple. We'll see how it goes because depends on the result, Apple might need to ditch their policy.
 
A bloody pity IMO. Fortunately I am old enough that I will not need any iOS programs that are outside of my current range with the possible exception of medical apps.

What I'll look for in the near future are 2 changes:

1. Apple will shift some of their Korean component production to other countries more friendly to Apple.

and:

2. Smart developers will make notations for potential customers that they are staying in Apple's Protective Payment System. Probably the same with existing customers. That tells me that I'll stay as safe as before.
Apple is heavily rely on LG and Samsung for display parts.
 
First, every one of the incentives mentioned in the post you replied to are CONSUMER benefits. Your comment about dropping to 5% and "all but the largest..." comment refer to DEVELOPER issues.

Key benefits on the list already exist (e.g., better purchase history management, ease of subscription management, simplified subscription cancellation). Others, like price guarantees are akin to most favored nations clauses. While not technically illegal, MFN clauses increase scrutiny and can easily bleed into antitrust (look back at the Apple Books lawsuit).

By the way, the fee apple charges is not a credit card processing fee. It also includes:
  • Global tax payments on behalf of developers along with all required reporting
  • First line support for application issues, including install and billing
  • Support for the App Store (operations, personnel, real estate, hardware, utilities, real estate taxes, etc.)
  • App Store review process and staff
  • Free access to notifications servers
  • Free access to use of Apple Maps in applications
  • Free access to one petabyte of online storage for your apps' users' data
  • Free access to Testflight and developer app beta support
  • Funding for all developer tools which are free to use by all (Xcode, API, docs, etc.)
  • Funding for new features in iOS and API (e.g., Metal, AI/ML, HEIC/ProRaw, Portrait, etc.)
The $99 annual fee covers:
  • Deployment certificates necessary to submit apps to the App Store
  • Access to developer-beta-builds of all Apple products
  • Access to developer support (2 free per year)
  • Access to developer forums
We can argue all day long as to whether 30% is too high. Or even 15%. But we can all agree it is not 5%. A case could be made to have an itemized fee schedule. 6% for credit card transaction processing, plus tax accounting, and a little towards developer tools funding. An additional 9% to 24% includes all the rest. And everyone still needs to pay the annual fee anyway as they will need deployment certificates just like on Mac.

edit: added Testflight and corrected a typo.
this answer needs to be at the top of the thread. It is so important to understand what is included in the payments. I really don't want to know what "Support for the App Store" actually costs.
 
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