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Daniel Ek and Spotify have no business even using the word "fair". Their business from the very beginning has been based on ripping off the very musicians that provide them with the product they sell, and it's only getting worse:

https://www.musicbusinessworldwide....U0fkiDFyc4joomV4VyhCetZHcxaLVvi9i8S6k6zavdGxk

I've cancelled my Spotify subscription but I'm staying with Apple Music. I hope Tim goes right ahead and kicks them out of his App Store.
Best post on the thread. I wish people would remember the content makers who always get ripped off these days. :(
 
Apple charges $99/year to keep hosting your app in the App Store. Then they throw a 30% tax on all IAPs on top of that. That's not what I call fair. E.g. Google only charges a $25 one time fee to be a Google Play developer, but then throw a 30% cut on IAPs. Not as fair as I'd like it to be, but more fair than Apple honestly.

Then people/companies should stop developing apps for iOS devices if they have an issue with the fee Apple charges. You don’t get the government to force Apple to offer terms that you just happen to like better.
 
The App Store is barely 5% of Apple revenues, and Apple was around and successful well before the App Store existed. And there are also tens of thousands of people working at Apple are at least partially responsible for making the App Store a reality.

So no, developers are not the ones who made Apple what they are today.

Looks like you completely missed the point. iPhone makes up the majority or apples revenue/profits. iPhone with no App Store or apps in this day and age would ruin the experience.

Apple were a very different company before the iPhone and were successful because of the iPod and Mac. Those two products make up a tiny amount of Apple’s profits today so an iPhone with no developers, no apps and no App Store would kill off the iPhone eventually.

That’s the main reason all other OS’s failed - there was no app support.
 
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Microsoft own their OS, they make the rules, if they want to ban mac stuff they should be allowed to. Try asking them how just bundling internet explorer went for them.

Not the same at all. They key phrase in that case was Microsoft’s abuse of a “dominant market position”. iOS doesn’t dominate the market for mobile OSes, as the Android fans are so fond of pointing out every chance they get.

Further, Apple allows all sorts of competing music services in The App Store (along with competing maps, e-mail clients, browsers and numerous other products that compete DIRECTLY with their own). Microsoft never had a store with competing browsers that users could pick from. If they did I doubt the case would have even went forward.

This is also why Google got into trouble in the EU (dominant market position and forcing OEMs to install certain software by default). The EU cases against both Microsoft and Google are similar, and neither is similar to this Spotify case against Apple.
 
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Not to mention that ONE of the primary reasons Apple created the app store to begin with was to be able to control the experience for the purposes of security, elimination of viruses and evilness, etc.

Kinda wish Apple would allow the App Store to be an App "Mall." Use the one app, but allow it to link to other app stores/repositories. When adding/using a 3rd party store, maybe add a warning along the lines of "Apple can not be held responsible for the content of this store. Use at your own risk." These other stores could have apps that Apple would normally not accept, like gambling and porn. I admit, it's funny that so many of these apps (and TV shows) can show violent gun fights, gory autopsy scenes, etc., but heaven forbid you show a breast or a penis.
 
The App Store is barely 5% of Apple revenues, and Apple was around and successful well before the App Store existed. And there are also tens of thousands of people working at Apple are at least partially responsible for making the App Store a reality.

So no, developers are not the ones who made Apple what they are today.

Without apps, no one would bother buying an iphone.
 
How is this situation any different from the grocery stores selling their brand alongside the "name" brand? The grocery store brand is always cheaper. Or Traders Joes, Whole Foods not even offering the name brands.

Further, Apple is not just a card processor. They build, maintain, provide the mechanism for delivery, and provide the financial backing for the store. There is a cost for doing so.
Grocery store analogy is irrelevant.
Manufacturers have a choice in where they sell goods. They have no other store option for iOS devices.
As for the App Store, Apple already gets paid by the developer to host the app download. It covered by the developer fee.
It doesn’t cost Apple any more or any less to host an app that uses a subscription than one that doesn’t.
Apple does not host the services that make Spotify function.
The way I see it, if a dev wants to use Apple for payment processing, Apple should rightfully be able to charge a fee for that.
But barring the option within the app to subscribe directly from the developer and even preventing the dev from even providing a simple link to subscribe externally, is monopolistic as they come.
 
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In some folks' opinion, yes, Amazon should be banned from selling first-party products that compete with third-party products. Some will argue that "My game, my rules" is all fine and good, until you get to the size of Apple or Amazon.

This issue is shaping up to be one of the key debates in US politics over the next few years, and maybe globally as well. Are Amazon, Apple, Google, Facebook the railroad barons of the internet age?

Retailers have been selling their own brand products along side third party products since retailing became a thing. Walk into any supermarket and you will see third party brands along side usually cheaper first party store brands. This isn’t a new concept.
 
It is therefore in my interest to see that Apple has the strength to stand up to any foe, no matter how strong, because the user experience that I so enjoy from my Apple devices is made possible by all these restrictions and limitations that you have just stated.

This has absolutely nothing to do with this pursuit. What were the other sources you read...wait...you only read the title of this MR article. Got it! Your "user experience" stems from the initial creation of a proprietary platform which can at any time restrict or eliminate what you enjoy. They also have the ability to impose restrictions on those services that you do use and not just the ones you have an opinion about because you don't use them.
 
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To add, my Office Home subscription just came due the other day. $139.95 (CDN) for a full year. Since I’ve been a subscriber for many years now, Apple only takes 15% of the cut and gives the rest to Microsoft. So when Spotify whines about 30% they’re being deceitful and not telling the whole story.

Curious why Microsoft isn’t whining about Apple taking a cut.
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Grocery store analogy is irrelevant.
Manufacturers have a choice in where they sell goods. They have no other store option for iOS devices.

This is false. I’d like to see you walk into Walmart and demand they hand over a portion of their fixed shelf space for your product.
 
This has absolutely nothing to do with this pursuit. What were the other sources you read...wait...you only read the title of this MR article. Got it! Your "user experience" stems from the initial creation of a proprietary platform which can at any time restrict or eliminate what you enjoy. They also have the ability to impose restrictions on those services that you do use and not just the ones you have an opinion about because you don't use them.

I have retracted my earlier statement. I have some thoughts on this matter, but it’s late here and I hope to better formulate my thoughts after I have had some sleep.

Suffice to say, I am a happy Apple user precisely because of decisions like this. Otherwise, I would have moved on to android if it were choices and freedom I preferred.

That said, it’s no surprise that Spotify is doing this now as Apple Music continues to gain momentum and market share in developed countries (which is where the money is).

Bottom line - spotify is getting desperate, and it shows.
 
Grocery store analogy is irrelevant.
Manufacturers have a choice in where they sell goods. They have no other store option for iOS devices.

You’re right, Apple doesn’t allow other stores. Apple also doesn’t have a monopoly on smart phones. If Spotify doesn’t like Apple’s terms they can refuse to support Apple’s platforms and say you must use Android to access our service.
 
App Store gave Spotify a way to reach millions of customer. How the **** is it unfair?
Spotify already pays Apple to host the download. Every developer does if they want to be in the App Store.
The 30% fee Apple wants is extortion. Apple does not have anything to do with the back end of Spotify’s services.
Sure... charge a processing fee if someone wants to use Apple to manage the monthly Spotify payment.
But forcing the dev to not be able put a link to allow users to subscribe directly within the app is petty BS.
 
While we can and should have a healthy debate on the actual percentage, the reality is that every 'store' makes a profit on what they sell... or they wouldn't stay in business for long. Products are bought at $x, marked up y% and sold to consumers at $z. Absolutely nothing is different here. In addition, every store has rules about what products it will or will not carry. Again, no difference.

Referring to this as an "Apple Tax" is at best disingenuous and at worst downright deceptive. It's Apple's cut for providing the infrastructure, payment processing and profit. It's not a 'tax'. Developers do not have to accept this. They just need to handle payment for purchases outside of the app / App Store. Customers, however, *like* doing this all-in-one. Yes, it's a chicken-and-egg situation.

Frankly, Apple is incredibly generous providing the infrastructure to distribute free apps without requiring any payment.

From my perspective, the challenge - and where Apple needs to be very careful - is the combination of store ownership with what could appear to be a censorship approach to deciding what products are sold. Because the Apple App Store is the *only* gateway into iOS, it needs to be as inclusive as possible while still enforcing minimum standards. We, the customers, expect Apple to require a generous layer of protections, ensuring that any app downloaded (purchased, free, or free+in-app) will not create a security gap, breach privacy, and will work well.

Spotify's assertion that they cannot connect Siri and HomePod to Spotify unless they also submit to the 30% overhead is a bit troubling though. If true - and I'm wiling to wait for more information - then Apple is indeed being at least somewhat anticompetitive. IMO, that should be the focus of Spotify's challenge... and what the EU investigates.
 
I'm not a lawyer, but Apple's arrangement definitely appears to be a violation of the spirit of anti-trust laws here in the US. However, I'm even less familiar with EU law.

Sorry, but that would be the case only if the courts decided that there was an iOS market and not a smart phone market. Apple controls a very small percentage of the smart phone market in Europe, and under 50% in the United States.
 
Spotify already pays Apple to host the download. Every developer does if they want to be in the App Store.
The 30% fee Apple wants is extortion. Apple does not have anything to do with the back end of Spotify’s services.
Sure... charge a processing fee if someone wants to use Apple to manage the monthly Spotify payment.
But forcing the dev to not be able put a link to allow users to subscribe directly within the app is petty BS.

Then the answer is to not support Apple’s platform. This argument would hold water if Apple held a dominant market position but that is not the case. In the US it’s under 50%. In the EU it’s even less.
 
Spotify already pays Apple to host the download. Every developer does if they want to be in the App Store.
The 30% fee Apple wants is extortion. Apple does not have anything to do with the back end of Spotify’s services.
Sure... charge a processing fee if someone wants to use Apple to manage the monthly Spotify payment.
But forcing the dev to not be able put a link to allow users to subscribe directly within the app is petty BS.

Uh, no. Imagine I put a display in Walmart for my product with a banner on top directing them to order direct from my website to save 30%. You think Walmart would accept this?

The sense of entitlement people have around The App Store is truly amazing.
 
I have retracted my earlier statement. I have some thoughts on this matter, but it’s late here and I hope to better formulate my thoughts after I have had some sleep.

Suffice to say, I am a happy Apple user precisely because of decisions like this. Otherwise, I would have moved on to android if it were choices and freedom I preferred.

That said, it’s no surprise that Spotify is doing this now as Apple Music continues to gain momentum and market share in developed countries (which is where the money is).

Bottom line - spotify is getting desperate, and it shows.

You're just reaching and grasping at twigs for justification of your opinion that looks more and more abysmal.
 
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The other supermarkets in your analogy would be other platforms, like Android, not other app stores.‘
Not a one-to-one comparison. In addition to what I've already stated, Apple also prevents users from using other app stores and side loading apps in general. I can buy food anywhere. Or my neighbor can give me food. I cannot load apps onto my iPhone unless they are on the Apple app store though, and Apple controls a huge portion of the phone market. Given all of the things I've mentioned in my posts, it seems clear to me that their fee structure is not only anti-competitive, but intended to be.
 
This is false. I’d like to see you walk into Walmart and demand they hand over a portion of their fixed shelf space for your product.
Spotify is not demanding any such thing.
Developers already pay to have their app listed in the App Store. It’s part of the annual developer fee.
Apple wants a piece of something they have nothing to do with.
 
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I think he's saying if Spotify want a level playing field then they should make their own hardware, infrastructure, ecosystem and mobile OS with an App Store, as this is what they are expecting Apple to provide for them for next to nothing.
If Spotify was in the Cellphone business I would understand....

Google provide the same thing for them for nothing.
 
Not a one-to-one comparison. In addition to what I've already stated, Apple also prevents users from using other app stores and side loading apps in general. I can buy food anywhere. Or my neighbor can give me food. I cannot load apps onto my iPhone unless they are on the Apple app store though, and Apple controls a huge portion of the phone market. Given all of the things I've mentioned in my posts, it seems clear to me that their fee structure is not only anti-competitive, but intended to be.

Correct on all those points. Where the argument falls apart is the fact that you have other options for a phone besides Apple. If you don’t like the way Apple does it’s business then buy an Android phone.
 
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