[HN Gopher] Dutch watchdog finds Apple App Store payment rules a...
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       Dutch watchdog finds Apple App Store payment rules anti-competitive
        
       Author : d3nj4l
       Score  : 346 points
       Date   : 2021-10-07 12:28 UTC (10 hours ago)
        
 (HTM) web link (www.reuters.com)
 (TXT) w3m dump (www.reuters.com)
        
       | dessant wrote:
       | > The people said Apple has asked the Rotterdam District Court
       | for an injunction to block publication of the ruling during its
       | appeal.
       | 
       | > A court spokesman confirmed the existence of the case to block
       | publication, but could not say when a decision is expected. The
       | proceedings are not open to the press or public.
        
         | elliekelly wrote:
         | > The proceedings are not open to the press or public.
         | 
         | Can anyone explain the policy reason behind the secrecy?
        
           | ArchOversight wrote:
           | Most court proceedings in The Netherlands are not open to the
           | public or press, mostly for the privacy and protection of
           | those involved with the case.
           | 
           | Unlike the US where court cases are publicized and
           | disseminated widely with the charges, but never with the
           | outcome of the court case.
        
           | jacquesm wrote:
           | I suspect that Apple is afraid that if the reasoning behind
           | this became public that Apple's stock price would be strongly
           | influenced and so they are trying to hide the information
           | from the market. It will be interesting to see if there will
           | be a net negative from the effect of the hiding by itself,
           | after all now people are free to speculate and they might go
           | further in their speculation than the actual ruling.
        
           | solidangle wrote:
           | Apple has filed a court case to block the publication of a
           | report. Obviously the contents of the report will be
           | discussed as part of the hearings. So if the hearings were
           | public then the contents would become public as well, which
           | would make the court case pointless. Hence the private
           | hearings.
        
           | burpee wrote:
           | Not entirely illogical, if something is expected to generate
           | a lot of media attention, the case may be kept private to
           | prevent the 'court of public opinion' to influence the
           | outcome. Everything is still documented and shared afterwards
           | regardless of the outcome.
        
         | jacquesm wrote:
         | I find this absolutely incredible, that the workings of the
         | court in a commercial case like this can be hidden from the
         | press and the public. Disgusting that they would ask for this,
         | and I sincerely hope that the court will reject that.
        
           | mjburgess wrote:
           | The flip side is that suppose the ruling is overturned and is
           | based on faulty law.
           | 
           | Then the courts have created a PR and possible big financial
           | hit on a company improperly. Could apple then sue for
           | damages?
        
             | jacquesm wrote:
             | A company that gets bad PR as the result of a court case
             | might be able to get the ruling overturned but that does
             | not trump the right of the public to know what transpires
             | in the courts. And no, then Apple could not - and should
             | not be able to - sue for damages because they are
             | themselves recognizing the power of the courts as arbiters
             | in these matters.
             | 
             | Similarly: if the ruling is upheld Apple does not get to
             | pay more because they - apparently improperly - asked for
             | the previous ruling to be kept secret.
             | 
             | Courts should operate in a transparent manner whenever
             | possible otherwise the trust in the legal system will erode
             | and that trumps the commercial interests of any single
             | company, even one as large as Apple.
        
               | avianlyric wrote:
               | In the court's defence, these documents are rarely sealed
               | forever. Usually they become public after the ruling has
               | been made.
               | 
               | If an appeal is being made, and current decision being
               | temporary suspended, then there's no reason for the
               | original decision to be public. The courts decide on
               | matters of law, so the publics view on the original
               | decision is irrelevant, and up to the parties involved to
               | convince the appeal judge their interpretation of the law
               | is correct.
               | 
               | Once the matters been settled by the courts, it make
               | sense to make everything public. But a no point during
               | the process should or can public opinion influence the
               | outcome.
        
               | mjburgess wrote:
               | I'm somewhat neutral on the issue. I agree, I also think
               | that if a judge keeps it sealed for a short while, it's
               | probably a reasonable thing to do.
        
               | emn13 wrote:
               | More likely, it's merely evidence it's a legally sound
               | thing to do. That doesn't mean it's particularly
               | reasonable, simply that it's not technically trivial to
               | reject out of hand. It could equally be a symptom of
               | regulatory capture; it's not like the judge gets to just
               | do whatever they feel is fair (at least not without
               | professional consequences).
        
           | bogwog wrote:
           | The Streisand effect never fails
        
         | [deleted]
        
       | tbjgolden wrote:
       | Let's hope they don't take the incoming Apple bribes for a new
       | office in Amsterdam or something
        
         | [deleted]
        
       | endisneigh wrote:
       | they should make the rules broader, e.g. any industry where a
       | single participant holds more than X% of the market must do
       | things complying with A, B and C.
        
         | r00fus wrote:
         | Would you put that threshold at 40% because I doubt Apple holds
         | that much of the market of all app stores.
        
           | Jensson wrote:
           | EU puts it right about there, yes. You can be found to be
           | anti competitive in other ways, but 40% is already enough for
           | the market dominance rules to apply to you.
           | 
           | > According to case law, market shares of between 40 % and 55
           | % indicate a dominant position on the market (Eberhard,
           | 2006).
           | 
           | https://www.europarl.europa.eu/RegData/etudes/IDAN/2019/6422.
           | ..
        
             | r00fus wrote:
             | Does Apple have 40% of the app store market? That's what
             | I'd question. How do you define such a market?
        
               | shadilay wrote:
               | Revenue probably.
        
               | r00fus wrote:
               | That's not how you count it, right? Otherwise it simply
               | leads to a race-to-the-bottom where an ad-supported
               | product gets to bypass market regulation because they get
               | their money in a different channel.
        
           | clusterfish wrote:
           | Of course. A single company holding 40% of the market is
           | hugely powerful. But it's often hard to define what a
           | "market" is - that is usually decided during litigation, I
           | don't know if definingt that proactively is scalable.
        
         | EastSmith wrote:
         | 20% for X and you need to open sounds great.
        
       | iruoy wrote:
       | > ACM has not levied a fine against Apple, but demanded changes
       | to the in-app payment system, the people said. The decision has
       | not been seen by Reuters.
       | 
       | What did they demand specifically?
        
       | shmerl wrote:
       | What's even more anti-competitive is their ban on alternative
       | stores. Why is no one addressing this elephant in the room?
        
       | AlexandrB wrote:
       | > They included a complaint from Match Group, owner of the
       | popular dating service Tinder, which said Apple's rules were
       | hindering it from direct communications with its customers about
       | payments.
       | 
       | As the Alien vs. Predator tagline said: whoever wins, we lose.
        
         | 015a wrote:
         | Yup. I fully understand the complaint from Match (and others,
         | like Netflix). Apple's app store payment policies are obviously
         | and blatantly anti-competitive.
         | 
         | But if you've ever tried to cancel an AT&T internet line or New
         | York Times subscription, you begin to understand Apple's
         | position. Consumers oftentimes have no recourse; Apple's (and,
         | similarly Google's) subscription framework is the first time in
         | history many of these companies have experienced the
         | powerlessness their users feel when dealing with recurring
         | payments. They don't like giving up power.
         | 
         | It should come as no surprise that the companies most vocal
         | about the payments monopolies are the ones who want to abuse
         | the freedom Governments will hand them, in the name of
         | maintaining a healthy competitive landscape.
         | 
         | I think a balance needs to be struck; Apple needs to have its
         | power reigned in, and I think that takes the form of a forced
         | reduction in revenue share to 10% max (Visa maintains a global
         | network of hundreds of thousands of diverse swipe terminals at
         | ~3%; if Apple can't maintain some servers at 10%, they're
         | incompetent and deserve to be driven into bankruptcy by this
         | totally reasonable legislation).
         | 
         | I don't feel that allowing alternate payment methods /
         | subscription frameworks would actually benefit users/consumers,
         | across any length of time, in any fashion whatsoever. I think
         | subscription/payment management needs to be delegated to user
         | accounts outside of any control of the service providers taking
         | payment, as its an intrinsic and irreducible conflict of
         | interest. Maybe that means Visa or whoever should start a
         | "subscription and payments portal" that service providers have
         | to integrate with. I don't know. But the way we've done it for
         | 20+ years doesn't work, and Apple's way is absolutely better;
         | its just not the best it can be, right now.
        
           | shadilay wrote:
           | This is such a bizarre response. You recognize there's a
           | problem with cancelling subscriptions and instead of to the
           | government to regulate the markets (which is their job) and
           | mandate easy cancelling of subscriptions, you want Apple to
           | do it? Do you want a government run by a corporation?
        
             | ThatPlayer wrote:
             | For example, California has already passed laws to make
             | cancelling subscriptions easier.
        
         | emsy wrote:
         | It didn't have to be that way. If Apple had sensible policies
         | that stand the test of regulatory scrutiny this wouldn't
         | happen. Now that lawmakers get involved I will expect the worst
         | outcome for customers, or as you succinctly put it ,,we lose".
        
           | halostatue wrote:
           | From a purely consumer perspective, Apple's policies are
           | eminently sensible. Allowing external IAP makes it harder if
           | not impossible to enforce simple cancellation.
           | 
           | If Apple allows external IAP, but _also_ requires strict
           | dispute resolution and simple subscription cancellation, that
           | would probably be deemed anticompetitive as well, even though
           | it's thoroughly pro-consumer.
           | 
           | The problem here is that the regulatory scrutiny is only on
           | one dimension, not the full picture. And in the full picture,
           | Apple's policies are eminently reasonable--if their fees are
           | a bit high.
        
             | jorams wrote:
             | > If Apple allows external IAP, but _also_ requires strict
             | dispute resolution and simple subscription cancellation,
             | that would probably be deemed anticompetitive as well, even
             | though it's thoroughly pro-consumer.
             | 
             | Why would that be considered anticompetitive?
        
               | halostatue wrote:
               | I personally don't think that it would be. I also have
               | very little problem with Apple's current stance on IAP
               | and _who_ actually owns the customer relationship.
               | (Quibbles can be made about percentages. If 30% is too
               | high for Apple, maybe we should be taking a much closer
               | look at a _lot_ of retailer relationships.)
               | 
               | However, the same people who say that it's
               | anticompetitive for Apple to control the payment flow are
               | likely to say that _any_ impingement of Apple on the
               | customer relationship is anticompetitive. These are the
               | people who don't actually _care_ about the customer
               | relationship, like the NYTimes subscription department,
               | or the companies that bank on customers forgetting to
               | cancel their subscription for months at a time or not
               | wanting to spend time on the phone to fight over a
               | $1.29/month subscription fee.
               | 
               | IMO, antitrust/anticompetition investigations tend to be
               | _far_ too limited in their scope (they look only at one
               | or two aspects and not the big picture of what's
               | happening). I remember a few years ago when Apple had
               | worked with publishers to establish a new standard ebook
               | contract for publishers and marketplaces. It was one that
               | would have (slightly) raised the prices of ebooks, but
               | replaced the unilaterally imposed contract that Amazon
               | provided. Apple got in trouble over it, even the result
               | would have been a _better_ and more _competitive_
               | marketplace and not one controlled by Amazon.
               | 
               | I have opinions on what should be done with the app
               | stores that would _probably_ fix a lot of the issues, but
               | any changes to the app stores need to look at whether it
               | would be a _better_ situation for customers or just a
               | more lucrative situation for publishers. And the customer
               | impact would not just be measured on "choice", but on
               | overall price/privacy impact.
               | 
               | Measured by that, there's no question in my mind that
               | Apple's doing a better job than people give them credit
               | for.
        
             | shagie wrote:
             | > Allowing external IAP makes it harder if not impossible
             | to enforce simple cancellation.
             | 
             | Thus the looming changes: Apple requires account deletion
             | within apps in AppStore starting January 31
             | https://news.ycombinator.com/item?id=28776960
        
           | emsy wrote:
           | There's a lot of room for compromise between ,,you are not
           | allowed to even mention external payment systems" and
           | ,,everyone has their own IAP system".
        
         | isaacfrond wrote:
         | > The Dutch investigation into whether Apple's practices
         | amounted to an abuse of a dominant market position was launched
         | in 2019 but later reduced in scope to focus primarily on dating
         | market apps.
         | 
         | Apple might just remove dating apps from the app store for the
         | Netherlands. Problem solved.
        
           | emn13 wrote:
           | I suspect your comment isn't entirely in good faith, but that
           | might well be considered strong evidence of anti-competitive
           | behavior.
        
         | [deleted]
        
         | echelon wrote:
         | Do you lose with the web?
        
           | huhtenberg wrote:
           | We certainly didn't win.
        
             | oblio wrote:
             | It's the biggest repository of knowledge in history. It
             | facilitates communication and trade on an unprecedented
             | scale.
             | 
             | Despite all the negative externalities that it also causes,
             | I fail to see how they could outdo its positive aspects.
        
               | oarsinsync wrote:
               | > _It 's the biggest repository of knowledge in history_
               | 
               | This is totally true. Unfortunately, it's also the
               | biggest repository of misinformation in history as well.
               | 
               | > _I fail to see how they could outdo its positive
               | aspects_
               | 
               | On a macro scale, you're likely correct. If you're one of
               | the unlucky people that suffers a significant negative
               | consequence, your view may differ.
        
               | oblio wrote:
               | > On a macro scale, you're likely correct. If you're one
               | of the unlucky people that suffers a significant negative
               | consequence, your view may differ.
               | 
               | That could be said for anything, though. There isn't a
               | thing on this planet that hasn't hurt anyone during its
               | creation.
        
           | tl wrote:
           | We don't know yet. We live in a world where the web is seeing
           | increased centralization on a variety of fronts with Google
           | and Facebook among those leading the charge.
        
           | CuriouslyC wrote:
           | Have you seen the web lately? I'll take the small, vetted,
           | fan crafted internet of the late 90s over this SEO written
           | content mill garbage mountain we have now.
        
             | berkes wrote:
             | But one does not remove the other. That web you so love is
             | still there (well, except for GeoCities...) mostly. You can
             | visit it. Subscribe to RSS. Watch funny dancing baby gifs,
             | or under construction signs.
             | 
             | It's just that all that other stuff came too. In addition
             | to that web you love. Not pushing it away, but shadowing it
             | in volume. Yet, there is no space shortage. The web is an
             | infinite library.
             | 
             | Not one that has to remove those seventies sci-fi books to
             | make place for the new Harry Potter section. But one that
             | can keep both.
        
               | marcosdumay wrote:
               | > But one does not remove the other.
               | 
               | As long as Google says so. And they haven't been open to
               | new old-school sites, just to old ones.
        
               | phero_cnstrcts wrote:
               | You'd have to find it first. If the search engines don't
               | promote it you'll never see it.
        
               | berkes wrote:
               | That web of the '90 did not have a search engine that
               | promoted that web either.
               | 
               | Well, there was altavista (and, ahh, the memories
               | Astalavista.box.sk) and some other ad-loaded websites.
        
       | netcan wrote:
       | The frame, considering the overall context is kind of ridiculous:
       | _Apple "requiring software developers to use its in-app payment
       | system" is anticompetitive_
       | 
       | Well shucks. Apple also controls who and what can be sold or
       | distributed in the market, how it should be built. They control
       | how much exposure apps get. Some of these controls are used more
       | directly, or blatantly to "rig the market" than others... but
       | these are just the current choices by Apple. It's not a rig. It's
       | the OEM design. Apple rigging the app store market is like Apple
       | penetrating icloud security. That's not a hack, it's a login.
       | 
       | I can see a logic _within_ the frame. If courts force Apple to
       | allow a competing system, it will put downward pressure on what
       | are (imo) indisputably monopoly prices. That 's competition, in a
       | neoclassical sense. There can be a big difference between no
       | competition and some.
       | 
       | OTOH, competitiveness _within_ Apples ' fully owned market seems
       | like a silly frame to operate within. Competition between ice
       | cream parlours within the walls of DisneyLand are at Mr Disney's
       | discretion. They can decide all ice cream parlours will be
       | subsidiaries, franchises or independants. They can set prices,
       | ban ice cream, etc.
       | 
       | Trying to deal with ice cream competitiveness in DisneyLand this
       | way is a fool's errand. One court rules on a policy forcing
       | Parlours to use Disney's insurance vendor, and price gouging.
       | It's a random detail and maybe it does help out parlour owners
       | lower costs. Disney have an infinite number of such options
       | available though. A free market it'll never be.
        
         | realusername wrote:
         | Having competition in the mobile app market is more important
         | for the global & local economy than "ice cream parlours at
         | disneyland"...
        
           | netcan wrote:
           | sure. I wasn't arguing for equal importance, or equal need
           | for policy-level decisions.
        
         | y7 wrote:
         | The regulator's antitrust case is probably much broader than
         | IAPs, but the findings are not yet public.
        
         | trothamel wrote:
         | Part of the difference is that that nobody thinks you own
         | Disneyland, but people think that they own their iPhone or
         | iPad. This sort of ownership means that it should be possible
         | to change your decisions about what to do with a device after
         | the moment you bought it.
         | 
         | I think most people would find it bad if a BMW branded car
         | could only take gasoline/petrol purchased using a BMW credit
         | card. Even if the terms of the BMW credit card were better than
         | everything else when the vehicle was first purchased, the lock-
         | in it creates would stop competition. And of course, if BMW
         | could change the credit card terms - say, stop allowing
         | purchases at your closest filling station, that would be worse.
         | 
         | Just from a consumer's perspective, given the popularity of
         | Fortnite, it's quite possible that there are some number of
         | people who bought an iPhone just for the purpose of playing
         | Fortnite, and had that use taken away from them. It feels wrong
         | that Apple can take that away from them.
        
           | threatofrain wrote:
           | But if the sole act of forcing app makers to use Apple's
           | generally more private and secure payment system is
           | anticompetitive, then how does the consumer _choose_ Apple as
           | the mediator of their relationships?
           | 
           | Where is the consumer choice for that? I ask because I don't
           | want 3rd parties selling insights from my financial data. Of
           | all _choices_ that a consumer actually wants, it would be the
           | ability to control the _apps_ (i.e., sideloading) running on
           | their device, as opposed to have more control yielded to app
           | makers.
        
             | commoner wrote:
             | Depends on the resolution. If a developer is able to use
             | another payment processor alongside Apple's payment system,
             | and set different price points to recover the respective
             | fees, the buyer would be able to decide whether adding
             | Apple as an intermediary is worth the price premium.
             | Currently, the buyer does not have such a choice. They must
             | involve Apple and pay the price premium if they want to
             | make the purchase.
             | 
             | Also, adding Apple as an intermediary increases the buyer's
             | privacy exposure in some cases. If the buyer already has an
             | account with the developer's service and makes a purchase
             | that is linked to the account, interjecting Apple into the
             | equation would reveal the purchase to both Apple and the
             | developer, instead of just the developer.
        
               | threatofrain wrote:
               | First, the Dutch government position is that forcing apps
               | to have Apple's payment system is anti-competitive... not
               | that developers must include multiple payment systems.
               | The customer isn't getting more choice here, the _app
               | maker_ is getting more choice. Companies like PopEyes,
               | who really want you to enter your credit card, will be
               | getting the choice.
               | 
               | Second, IAP is separate from Apple Pay. If you do
               | payments through another payment ecosystem... Apple still
               | gets a cut. Nobody gets to dodge a price premium. If you
               | want to talk about price premium, we should really be
               | talking about the IAP.
               | 
               | Third, you _are_ getting more risk here. When you use
               | Apple Pay, the vendor knows almost nothing about you. We
               | 're talking about the likes of Target and PopEyes (who
               | really wants your credit card info) vs Apple, who retains
               | very little financial information [1]. How many apps have
               | you paid for? How many businesses do you transact with?
               | That's a lot of Targets.
               | 
               | And fourth, I am concerned about whether Apple will be
               | able to compel developers to have easy recurring payment
               | cancellation in one place. Whether it's a business or a
               | government doing this, being able to easily monitor and
               | cancel recurring payments is a big _consumer_ win. Where
               | is the _consumer_ choice for this?
               | 
               | Finally, the marketplace is about the negotiation of
               | leverage. You talk about customers choosing vendors... my
               | family members aren't going to win in negotiations with
               | any company. The choice will be _Walmart 's_ way or the
               | highway. Where is the consumer choice to have Apple
               | negotiate with Walmart on your behalf?
               | 
               | [1]: https://support.apple.com/en-us/HT203027
        
               | commoner wrote:
               | 1. Developers are not able to offer multiple payment
               | systems for certain types of purchases when Apple forces
               | apps to use Apple's payment system. By removing Apple's
               | restriction, developers would be able to offer multiple
               | payment systems and allow customers to have a choice
               | between different payment systems. Apple's restriction
               | prevents customers from having this choice, because it
               | prevents developers from offering it.
               | 
               | 2. We'll see when the Dutch situation is finalized. Epic
               | v. Apple was filed in the Northern District of
               | California, which is separate from the Netherlands.
               | 
               | 3. You're missing my point. For instance, if you already
               | have an Amazon account and you purchase an e-book to add
               | to your Kindle collection, Amazon would get this purchase
               | information no matter how you pay, since your e-book
               | purchase is linked to your Amazon account. Amazon would
               | already have your payment method (unless you haven't
               | purchased any physical or digital items directly from
               | them beforehand). Paying through Apple would only expose
               | your purchase information to Apple in addition to Amazon,
               | and at a price premium. It would not prevent Amazon from
               | having the purchase information.
               | 
               | 4. Payment processors such as PayPal also allow
               | cancelling recurring subscriptions in one click from a
               | centralized page. Apple's payment system is not unique in
               | this regard.
               | 
               | Developers should be able to offer multiple payment
               | systems, so that customers can choose between them. Some
               | customers do not want to use Apple's payment system for
               | some of their purchases, and Apple's requirement deprives
               | these customers of alternative options. Dutch regulators
               | have found Apple's restriction to be anti-competitive.
        
               | threatofrain wrote:
               | 1 & 4. You haven't answered the question about what
               | consumers are supposed to do when they _want_ Apple Pay,
               | rather than having dozens of financial relationships with
               | dozens of companies. In the free market, you negotiate
               | with what leverage you have. Companies like Walmart,
               | Target, and PopEyes are free to do as they wish.
               | 
               | That PayPal offers you a place to cancel subscriptions
               | does not mean that Target must offer you the option of
               | your preferred payment vendor. In order to achieve this,
               | perhaps you might throw around your weight to negotiate
               | with Target and such? You don't get to compel the use of
               | PayPal unless Target agrees.
               | 
               | 2. The reason why companies must pay IAP is for legal
               | reasons, not Apple Pay. Since we're talking about the
               | Netherlands, we can just view Epic as an example of how
               | Apple's legal strategy has played out across the ocean,
               | or not talk about them at all.
               | 
               | 3. I think you have a technical misunderstanding if you
               | think paying with Apple Pay means that the vendor has
               | your financial information. They don't. With Apple Pay,
               | Target wouldn't have any credit card information to leak.
               | You are more exposed to financial risk with the numerous
               | financial relationships you have. The reason why some
               | companies already have your credit card information is
               | because you couldn't resist giving it to them, perhaps
               | because Apple wasn't negotiating on your behalf.
        
               | commoner wrote:
               | 1. Sellers get to choose the payment methods they accept.
               | Some sellers don't take cash, some don't take PayPal, and
               | some don't take Apple Pay. If a seller doesn't offer the
               | buyer's preferred payment option, the buyer can either
               | either choose from the payment options the seller does
               | accept, or shop elsewhere. Depending on how the antitrust
               | situation is resolved, Apple may be able to require
               | developers to offer Apple Pay, yet still allow developers
               | to offer other payment options alongside it. Buyers are
               | not entitled to use Apple Pay everywhere, just as they
               | are not entitled to use cash, PayPal, or a particular
               | credit card everywhere.
               | 
               | 3. I'm not talking about Target, I'm talking about an
               | e-book purchase on Amazon that gets added to the
               | purchaser's Kindle collection. Amazon must know that the
               | user purchased the e-book, since that is the only way the
               | e-book gets added to their collection. If Amazon already
               | has the buyer's payment information from a previous
               | purchase, directly purchasing the e-book through Amazon
               | would be strictly more private than purchasing it with
               | Apple overseeing the transaction. Every purchase is a
               | different situation, and in some situations, using Apple
               | as an intermediary is worse for privacy than directly
               | purchasing through the vendor. Not everyone prefers
               | having Apple monitor all of their transactions.
        
               | threatofrain wrote:
               | > Sellers get to choose the payment methods they accept.
               | Some sellers don't take cash, some don't take PayPal, and
               | some don't take Apple Pay. If a seller doesn't offer the
               | buyer's preferred payment option, the buyer can either
               | either choose from the payment options the seller does
               | accept, or shop elsewhere.
               | 
               | This is precisely my point. Walmart's way or the highway.
               | After all, the free market is a land of the negotiation
               | of weight, and you don't weigh very much.
               | 
               | > Buyers are not entitled to use Apple Pay everywhere,
               | just as they are not entitled to use cash, PayPal, or a
               | particular credit card everywhere.
               | 
               | In the free market, you aren't entitled to anything you
               | can't negotiate. Apple can do this for you. Apple has
               | enough weight with the collection of customers behind
               | them.
               | 
               | > I'm not talking about Target, I'm talking about an
               | e-book purchase on Amazon that gets added to the
               | purchaser's Kindle collection. Amazon must know that the
               | user purchased the e-book, since that is the only way the
               | e-book gets added to their collection.
               | 
               | A company doesn't have to know your financial data to
               | know that you paid for a digital good. _I_ am talking
               | about Target, except Target is just an example of a
               | company that already had a financial leak scandal. I also
               | talked about Amazon, since there 's enough room to talk
               | about more than one company. My response was that you
               | forked over your credit card information because Amazon
               | had that power.
               | 
               | As you say, you're not entitled to choose the terms of
               | your relationship with Amazon. Your choices were only
               | Amazon or... _not_ Amazon. I mean, not unless you can
               | negotiate with Amazon. And then you have to do this for
               | PopEyes and Target too, all while contemplating your
               | entitlements as a customer.
               | 
               | So I ask again, where is the consumer choice to have
               | Apple intermediate relationships on your behalf?
        
               | commoner wrote:
               | Some banks and other services such as Privacy.com offer
               | disposable credit card numbers to conceal your payment
               | identity. These services work very well. You can ask
               | Apple to offer this service, if you want Apple to
               | intermediate for you. But as long as Apple does not offer
               | a such a service, it is not the seller's obligation to
               | cater to a buyer's preference to use Apple to pay for
               | everything. An Apple user has no right to compel a
               | developer to transact with Apple on unfavorable terms,
               | and is therefore not entitled to the "choice" that you
               | are describing.
               | 
               | The Dutch antitrust regulator has determined that Apple
               | is not allowed to force developers to exclusively use
               | Apple's payment system. There is no antitrust principle
               | that compels developers to offer Apple Pay or any
               | specific payment option. But as I said before:
               | 
               | > Depending on how the antitrust situation is resolved,
               | Apple may be able to require developers to offer Apple
               | Pay, yet still allow developers to offer other payment
               | options alongside it.
               | 
               | If that's not an option for Apple, then the burden is on
               | Apple to offer a competitive payment processing solution
               | to be accepted by both developers and users.
        
               | threatofrain wrote:
               | > An Apple user has no right to compel a developer to
               | transact with Apple on unfavorable terms, and is
               | therefore not entitled to the "choice" that you are
               | describing.
               | 
               | I am not talking about a customer's _right_ to compel a
               | developer to choose private and safe methods for payment.
               | I am talking about _leverage_ in a free marketplace. It
               | 's not that you don't have the right... you don't even
               | have the weight as an individual customer to step into a
               | negotiating room for a conversation. Apple does.
               | 
               | I am also far more sympathetic to consumer protection
               | than whether companies should be able to choose Stripe or
               | manage your financial information for their business
               | benefit. This is the "unfavorable terms" you're talking
               | about.
               | 
               | > Depending on how the antitrust situation is resolved,
               | Apple may be able to require developers to offer Apple
               | Pay, yet still allow developers to offer other payment
               | options alongside it.
               | 
               | If this is the case then the conversation will be moot.
               | But this is speculative, so I am arguing for the other
               | side of your forward-looking statement.
        
           | mjhagen wrote:
           | I think your analogies aren't very fair:
           | 
           | Disney: It's not the park or the device, it's about the
           | experience, Apple wants to control that, just like Disney.
           | 
           | BMW: You're allowed to put any brand of electricity in your
           | iPhone's battery. I would've gone with the third party car
           | stereo market.
        
             | trothamel wrote:
             | Sure, if you want. I think the point is that I own my iPad,
             | and I don't own Disneyland, and that's a big difference.
        
               | amelius wrote:
               | Yes, Apple wants to have it both ways.
        
           | amelius wrote:
           | > Part of the difference is that that nobody thinks you own
           | Disneyland, but people think that they own their iPhone or
           | iPad. This sort of ownership means that it should be possible
           | to change your decisions about what to do with a device after
           | the moment you bought it.
           | 
           | I think the main trouble with products like Apple's is that
           | you end up in a monopolist-controlled market just after you
           | have bought the product. See also e.g. Nescafe coffee where,
           | after buying the coffee machine, you are limited to buying
           | coffee from 1 vendor (this is not true anymore but it was
           | true for a long time).
           | 
           | If monopolies are forbidden, then so should a monopoly-after-
           | you've-bought-a-product.
        
         | dmos62 wrote:
         | It is ridiculous if framed like that. A better interpretation
         | is that this adresses an easy to address aspect of the anti-
         | competitive phenomenon that is Apple app store - allow other
         | payment processors. It _is_ a lot like coming to a house fire
         | with a pack of bandages. Can 't hide the fact that noone seems
         | willing to address the bigger problem.
        
         | CuriouslyC wrote:
         | If people were forced to walk through Disneyland to get to work
         | or live their daily lives, your analogy would be more apt.
        
         | oauea wrote:
         | Exactly, everything else you listed about Apple's behavior is
         | also anticompetitive and will hopefully be addressed in the
         | future. But lets start with payments.
        
         | spywaregorilla wrote:
         | First principles arguments are crushed by emergent properties
         | at scale. Disneyland has less than a hundred restaurants. The
         | harm to society if Dinseyland has extra control over those
         | restaurants is miniscule. The harm caused by Apple having
         | monopolist control on the majority of mobile phone owner's
         | entire software stack is exponentially larger.
        
           | jeroenhd wrote:
           | > the majority of mobile phone owner's
           | 
           | In some circles, maybe, but not here in the Netherlands (+/-
           | 60%). Worldwide, the majority of phone owners still run
           | Android.
           | 
           | This is one of the key arguments people use in Apple's
           | defence, because the bigger their majority share, the quicker
           | anti-monopoly laws would apply.
           | 
           | I agree with your point, though. The Apple/Google duopoly
           | hurts the general public to ensure the profit margins for
           | these companies' shareholders. Those with neoliberal
           | convictions might not agree with me, but I believe that the
           | free market needs regulation to prevent problems like these.
        
             | spywaregorilla wrote:
             | I don't find that convincing. There's billions of ios
             | users. That certainly passes the bar of emergent effects of
             | scale to properly view it as its own unique market. It
             | doesn't matter if there's billions of other users on
             | android.
        
           | netcan wrote:
           | I don't disagree with that. I'm not suggesting that harm is
           | comparable, only structure. You can deal with DisneyLand ice
           | cream by ignoring it. Apple, not necessarily.
           | 
           | That said, if you were to deal with DisneyLand ice cream...
        
       | horsawlarway wrote:
       | I've said it before, but I'll throw it in here too -
       | 
       | Apple is going to lose this fight in basically every market
       | except the US.
       | 
       | It's very clear that their behavior is rent-seeking. If their
       | product (the app store) is genuinely better for users & companies
       | - it should be able to out compete other products (alternative
       | app stores) on the platform.
       | 
       | Instead they arbitrarily prohibit any competition what-so-ever.
        
         | MomoXenosaga wrote:
         | Apple will fight it as long as they can. Don't even blame them
         | to be honest.
        
         | tomtimtall wrote:
         | > If their product (the app store) is genuinely better for
         | users....
         | 
         | Apple doesn't make and sell App Store. It makes and sells
         | iPhones. And it's not "genuinely better" and they do not
         | dominate the market however it's good enough that a lot of
         | people are willing to pay a premium for that product.
        
           | paulryanrogers wrote:
           | They sell AppStore licenses to developers and take a
           | percentage of purchases within that store.
        
         | enos_feedler wrote:
         | If you look at from Apple's persepctive, why should it take
         | competition on top of their platform to shake out what is best
         | for the user if they believe they are doing right by the user
         | themselves?
         | 
         | The fundamental issue here is that developers, at scale, cannot
         | be trusted. You can trust specific ones to do the right thing
         | but you can't trust them all. Apple sees themselves as
         | responsible for protecting all of their customers from this
         | reality. Some call them "gatekeepers". The example here is
         | sharing an email address with developers. There are other
         | examples like "no background processes". Developers hate this
         | becuase they see _themselves_ as trustworthy but the reality
         | still stands: developers at scale cannot be trusted to do the
         | right thing.
         | 
         | Now let me add my opinion on this: Should we have a platform
         | that allows consumers to make a single choice ie) choose Apple,
         | and by proxy never needs to trust developers at scale?
         | Absolutely. Many people, especially developers, would rather
         | trade some developer flexibility (multiple payment processors)
         | and push some responsibility onto Apple's users to continue
         | making an opt-in choice for Apple. I choose them for my phone.
         | I choose them again for in-app purchases. Continue making
         | choices in support of Apple for each layer of the system. I am
         | not really sure what this buys the consumer. What is Apple
         | blocking from you by forcing you to make that choice once, and
         | then being forced to "never trust developers at scale" for the
         | remainder of being an iPhone customer? Is it blocking
         | "innovation"? Some people think that. I don't see it. I see a
         | company that pushes the hardware envelope with sensors,
         | battery, operating system, etc, and works hard to give
         | developers access to THOSE things. Maybe not a users email
         | address, but is that really innovation anyway? I looked at this
         | Paddle payment processor and they have some things like "pause
         | subscription". Is pause really an innovation that is being
         | blocked by only using Apple's system? Google has supported
         | pause for a long time. Users want it, but to developers really
         | want users pausing their subs? probably not.
        
           | pg_1234 wrote:
           | Look at it from the countries perspective, why should it let
           | some foreign corporation dictate how transactions are
           | performed on their platform (where their platform is all
           | business in their national jurisdiction).
           | 
           | The country's users are it's citizens, and it may act to
           | ensure what it deems best for them. If Apple doesn't like
           | that ... it can find another 'store'.
        
             | enos_feedler wrote:
             | Because a country has an interest in protecting the safety
             | and security of its citizens, not choose winners and losers
             | of a global market. And considering Apple's valuable brand
             | is essentially built on safety and security it would be a
             | bit strange to kick them or build rules that only they seem
             | to breaking.
             | 
             | If you want to look at "transaction" as the activity that a
             | government should look closely at then I think there is a
             | bigger thing to look at right now; people tossing their
             | money into shitcoins. If governments aren't spending cycles
             | looking carefully into the blockchain transactions of their
             | citizens they shouldnt be spending too much time worrying
             | about whether an iPhone user can choose to use their credit
             | card with a different processor inside of apps
        
               | shadilay wrote:
               | If Europe forces Apple to lower its commission by say
               | 25%, that goes directly into the pockets of European
               | companies, individuals, and taxes. It's a huge economic
               | benefit. Why should they care if it makes some American
               | monopoly sad?
        
         | zepto wrote:
         | You may well be right that they are going to lose.
         | 
         | Everything else, you are wrong about to the point of absurdity.
         | 
         | Alternative app stores is means the _Facebook_ App Store*.
         | Nobody can seriously pretend that Facebook competes on its
         | merits.
        
         | simonh wrote:
         | Let's look at games consoles. The way the console manufacturer
         | makes money is by operating a store and providing access to the
         | platform to games publishers, they generally make a loss on the
         | device. It would break the industry to demand that they must
         | allow alternative app stores on their consoles, as those third
         | party app stores would be parasitizing the work the console
         | developer did designing, manufacturing, developing the OS and
         | services, etc and subsidising the devices.
         | 
         | Nintendo is unique in that they actually make some small amount
         | of money on their devices. Does that mean they should be
         | required to allow alternative stores on the Switch?
         | 
         | Apple make a lot of money on their devices, but they still did
         | all the work developing the product, maintaining the OS,
         | supporting the ongoing costs of device services like iMessage
         | and location services that they don't charge for. The App Store
         | arguably provides recurring revenue to offset those costs,
         | which alternate stores would not help support.
         | 
         | Is it really fair to require manufacturers to allow third party
         | app stores to free ride on all the work they've done?Maybe
         | there is an argument that if a manufacturer makes enough money
         | on the device they should allow third party app stores, but how
         | much is it? At what point does it become ok to bar the device
         | manufacturer from maintaining an exclusive app store?
        
           | Orphis wrote:
           | The problem is that you are comparing a device sold to play
           | games to a general purpose device (music, videos, games,
           | banking, productivity, healthcare, phone, modem...).
           | 
           | While consumers generally don't have too many expectations
           | from being able to do much more on a game console (though
           | that is changing on the XBox), people expect a LOT more from
           | their minicomputer in a phone shape. Hampering control on
           | that device is detrimental to the consumer who paid already a
           | LOT for that device.
        
           | AnthonyMouse wrote:
           | > It would break the industry to demand that they must allow
           | alternative app stores on their consoles, as those third
           | party app stores would be parasitizing the work the console
           | developer did designing, manufacturing, developing the OS and
           | services, etc and subsidising the devices.
           | 
           | This is a weird objection. It's like saying that if you ban
           | robocalls, it will break the robocalling industry. Well,
           | yeah, that's the point. That business model is abusive.
           | 
           | It doesn't cause game consoles to not exist, they would just
           | work differently. You would pay the actual cost for the
           | hardware and less for games.
           | 
           | The overall cost would plausibly be less because there is no
           | need for any of this lock-in business anymore. Instead of
           | buying a "PlayStation" for $300 you buy a copy of
           | PlayStationOS for $50 and install it as a secondary OS on
           | your Xbox or PC. Then a console costs more but you need a
           | third as many of them, meanwhile all the games are cheaper
           | because they're not paying a huge cut to a gatekeeper.
        
         | Aaargh20318 wrote:
         | > If their product (the app store) is genuinely better for
         | users & companies - it should be able to out compete other
         | products
         | 
         | I don't think this is true. If there were multiple stores, then
         | the one that is best for companies would win, not the on that
         | is best for end-users. Users don't get a say in which store an
         | app is published in.
        
           | colinmhayes wrote:
           | Yes they do. If users like the app store more than competing
           | stores companies will be faced with the choice of putting
           | their app on the app store or losing customers to competitors
           | that put their copycat app on the app store.
        
             | darkwizard42 wrote:
             | So we should encourage copycat apps? This line of thinking
             | doesn't really lead to a place that is productive for
             | developers OR consumers...
        
               | colinmhayes wrote:
               | We don't need to. They already exist. Either way it won't
               | matter because companies will see that putting their app
               | on the app store for apples cut - 10% less while also
               | telling users about the cheaper option is profit
               | maximizing.
        
           | clusterfish wrote:
           | Users get a say in which apps they purchase. I've no idea
           | what people are whining about saying cancelling app
           | subscriptions is hard. Never ran into this, and if I ever do,
           | worst case credit card chargeback would put the unscrupulous
           | vendor in its place. It's not Apple's job to hold my hand.
        
             | Aaargh20318 wrote:
             | > Users get a say in which apps they purchase.
             | 
             | You expect users to not get an app they want to buy just
             | because they prefer a different app store ?
        
               | Jensson wrote:
               | Apple takes a cut since they give you visibility in their
               | appstore. Are you saying that their argument is nonsense
               | and that nobody finds apps they want to install in the
               | appstore and instead people learn about apps in other
               | ways? Then why should the app store take the huge 30%
               | cut?
               | 
               | And difficulty to install matters a great deal. If it is
               | a few more clicks you will lose a ton of users because of
               | it.
        
             | darkwizard42 wrote:
             | Look at PC gaming for an example of how this choice is NOT
             | in the hands of consumers. If a developer gets paid by Epic
             | to have an Epic store exclusive, how does the consumer win
             | here?
             | 
             | I have to decide between getting a game (that I want to get
             | and want to give my money to the developer for) at the time
             | I want at the cost of using Epic's buggy and shady
             | launcher.
             | 
             | It isn't Apple's job to hold my hand, but I certainly
             | appreciate them dealing with the hundreds of developers
             | whose products I interact with, creating a "code of
             | conduct" that I can trust and know developers will abide by
             | (99.9% of the time)
        
               | stale2002 wrote:
               | > Look at PC gaming for an example of how this choice is
               | NOT in the hands of consumers.
               | 
               | This doesn't make any sense. It is already the case that
               | if someone only publishes the app on android, and don't
               | publish it on the iPhone, then you as a consumer can't
               | buy it on the apple app store.
               | 
               | Are you going to argue that your choice is being taken
               | away, because a developer only put it on android? That is
               | no different than if they put it on a different iPhone
               | app store.
        
         | 015a wrote:
         | I think its a bit more complex than pure competition.
         | 
         | Let's say we're living in a world where Apple's IAP framework
         | has a 5% fee. This is roughly in-line with baseline credit card
         | transaction processing fees, think Stripe or whatever, at 3-5%.
         | 
         | Many apps would still choose to not use Apple's system, because
         | of exactly what Match says: Its not a matter of cost, its a
         | matter of power. Service providers want to control the billing
         | relationship with their users; they don't want Apple to have
         | any control, because Apple is traditionally very pro-Consumer,
         | and they will delegate much of that power to the Consumer.
         | Service providers don't want their users to have any power in
         | the billing relationship.
         | 
         | There are reasonable arguments why this is fine; say, for
         | example, a service provider wants to offer some customer 20%
         | off for the next three months, for whatever reason. This kind
         | of setup is hard to model in the IAP framework; its very
         | egalitarian.
         | 
         | But, overwhelmingly, the problem is more-so when it comes to
         | canceling subscriptions, and whenever Match or Netflix or
         | whoever says "we want to be able to directly deal with
         | consumers" you should delete every word they say and replace it
         | with the words "apple makes canceling free trials and
         | subscriptions too easy, and we want to make it hard." There's
         | actually nothing else to it; the magnitude of the fee Apple
         | charges is high (30%), and needs to be reduced, but that tax is
         | dimes compared to the profit companies make from users paying
         | for subscriptions they don't want or need.
         | 
         | So; competition states, if their solution is genuinely better,
         | companies will use it. Actually, this is false; companies don't
         | give a shit about their users. They won't use it, even if its
         | better for users, even if it were _free_ , because the solution
         | is definitely not better for them, because money is power, and
         | Apple's IAP framework delegates too much power to Apple (a
         | third party) and the users. The competition argument is
         | actually irrelevant, because the two solutions we're comparing
         | (self-managed sub management vs Apple-managed) are actually not
         | fungible in the same way Stripe is fungible with Square (or
         | whoever). They carry fundamentally different externalities for
         | both users and service providers.
        
           | shkkmo wrote:
           | Apple is only "pro-consumer" when the person paying for that
           | stance isn't Apple. When Apple is footing the bill, they are
           | quite happy to be as anti-consumer as they think they cam get
           | away with.
           | 
           | If Apple's approach to billing is something consumers value
           | and are willing to pay for, then consumers will choose to
           | keep using Apple payment methods. Perhaps some consumers
           | would like to pay 25% less and are fine with disputing
           | charges when a company makes it too hard to cancel?
           | 
           | Also, Apple already enforces other rules when reviewing Apps,
           | Apple could still force companies to allow easy cancelation
           | without forcing them to use Apple for payments.
           | 
           | Apples' insistence of using their payments would also be less
           | egregious if they allowed alternative app stores. As it is,
           | Apple's stance is bad for consumer choice.
        
           | ksec wrote:
           | >its a matter of _power_.
           | 
           | Which is the argument I have been saying since the beginning.
           | They are stepping over the line of those in power.
           | 
           | And it doesn't help when this does not belong to those
           | currently in power or they have no leverage to use it. When
           | this happens, the only way to solve it would be no one has
           | that power, hence opening up.
           | 
           | Any other reasoning, monopoly or not are only there to sugar
           | coat their argument.
           | 
           | As with anything about power, it belongs to politics, and
           | things get ugly in a hurry.
        
           | Jensson wrote:
           | > 5% fee. This is roughly in-line with baseline credit card
           | transaction processing fees
           | 
           | No it isn't, EU already went after credit card companies and
           | forced them to lower their rates. I see no reason why EU
           | wouldn't do the same for Apple and similar. Of course in USA
           | you still pay those insane rates, but not everyone has to do
           | it.
        
           | ludjer wrote:
           | > Apple is traditionally very pro-Consumer
           | 
           | They are only pro consumer when it makes them more money.
        
             | da_chicken wrote:
             | Yeah, Apple only looks pro-Consumer because they're still
             | in the business of selling software, hardware, and software
             | services to consumers. Their competition is all funded by
             | corporate advertising.
             | 
             | It's not a matter of Apple being a positive force for
             | consumers or customers. They're simply the most magnanimous
             | blackguard.
        
               | Jensson wrote:
               | Apple's 30% cut is only from purchases and not from ads
               | so it pushes all the apps you get on that platform
               | towards ads. So even they themselves doesn't get a lot of
               | money from ads, their policy greatly encourages ad based
               | monetization.
        
             | 015a wrote:
             | Um, duh? Isn't that implied?
             | 
             | Would you describe any company's actions under the light of
             | "yeah they only did that because it lost money". That's not
             | just something companies don't do; its illegal (for public
             | companies).
        
           | hn_throwaway_99 wrote:
           | Hard disagree. IAP will still be super integrated into
           | iPhone, so my guess is that, for the consumer, the steps to
           | using it will be absolutely simple and easy. Going to another
           | payment system will likely require at least a click or two
           | more, and that friction alone will make most businesses stick
           | with IAP, assuming the rates are comparable.
           | 
           | It's really only the blockbuster apps (e.g. Fortnight) that
           | will have the power to convince people to move to a different
           | payments system, because in their case folks who actually
           | want the app will be willing to tap through one or two extra
           | steps.
        
           | rainbowsloth wrote:
           | As a consumer, I want ease of use and safety.
           | 
           | I don't want to be bothered with a menu in-app on if I want
           | to pay through Apple Pay or through PayPal or some other
           | proprietary custom service. I just want to pay using the
           | cards I have already added onto my phone's wallet. Who
           | handles the transaction behinds the scene is of no importance
           | to me. The important thing is that it is handled.
           | 
           | I don't want the app to bounce me out into Safari where I
           | login to another service just to pay. I don't want the app to
           | open an in-app browser for me to enter my credit card
           | information to pay.
           | 
           | I want a standardized, system-level integrated payment screen
           | like what iOS currently does. I want it to be standardized
           | and system-level integrated because I don't want to have to
           | think if the website or app is launching me to a phishing or
           | scam page. I want this screen to tell me clearly how much I
           | owe, who I owe it to, and let me choose how to pay for it by
           | selecting one of the cards I've added to my wallet or an
           | option to pay one-time with a card (that doesn't get saved to
           | the wallet) ad hoc.
           | 
           | I don't care if the payment goes through Apple Pay, or
           | Stripe, or Walmart Pay, or whatever. If Walmart is insistent
           | on processing payments through Walmart Pay, then I want to
           | just simply scan my phone's NFC wallet and have Walmart Pay
           | take money from the default credit card I have attached to my
           | wallet app.
        
           | robbedpeter wrote:
           | Walled gardens are bad for consumers. Apple is the definitive
           | walled garden on planet earth. They are litigious, anti-
           | competitive, and use unethical supply chains at great human
           | cost, but their marketing/propaganda is superb.
           | 
           | Apple is the primary reason we have unreplaceable batteries,
           | for example. That by itself is massively anti-consumer, but
           | it's one among hundreds of inherently user hostile behaviors
           | that Apple inflicts on the world.
           | 
           | Other players in the market are constrained by Apple's design
           | choices, because those choices often single-handedly drive
           | economies of scale for device components.
           | 
           | Apple is not pro consumer. Apple is ruthlessly oriented
           | toward absolute control of perceptions and behaviors of
           | customers within their walled garden so they can extract the
           | maximum amount of money from their customers.
           | 
           | Apple hides the externalities within their own domain and
           | imposes market expectations on the rest of the world. Their
           | exploitation of software patent and ip laws stifle innovation
           | and competition, and they set the standards of corporate
           | behavior for all the major players.
           | 
           | Unless by "traditionally" you mean exactly the period of
           | Apple's history when they were plucky underdogs... Apple
           | hasn't been pro-consumer for a couple or three decades.
        
             | tshaddox wrote:
             | Do you honestly think that iPhone customers will be more
             | satisfied with iPhones if iPhones are required to support
             | third-party app stores and/or sideloading? I find it
             | impossible to believe that this could make customers
             | happier. It is almost certainly going to result in more
             | malware and user tracking, more bugs, more fragmented
             | processes for finding and paying for apps, more user-
             | hostile in-app purchase and subscription behavior, etc.
        
               | pg_bot wrote:
               | Yes. For the simple reason that I own both a Mac and an
               | iPhone. These devices are extremely similar in their
               | capabilities, except I can download software directly on
               | one, and the other is a captive market. There is a reason
               | why the Mac App Store is a wasteland. Apple provides
               | almost no value when it comes to distributing third party
               | software. They only dominate on the iPhone because they
               | are the only game in town.
        
               | tshaddox wrote:
               | The fact that you own both a Mac and an iPhone _supports_
               | my claim, assuming that in both case you were relatively
               | informed of all the alternatives and were free to choose.
        
               | pg_bot wrote:
               | I own about 4-5 computers and 3 phones. One of those
               | computers is a Mac and one of the phones is an iPhone.
               | The only claim I made was that I would be more satisfied
               | if the iPhone could support third party stores or
               | sideloading. I will continue to stand by that claim.
        
               | tshaddox wrote:
               | I don't dispute your prediction that you would be more
               | satisfied if your iPhone could support third party stores
               | or sideloading. My prediction is about customer
               | satisfaction in aggregate.
        
               | pg_bot wrote:
               | I don't understand your logic here. Adding additional
               | third party stores wouldn't affect the availability of
               | Apps in the App Store if Apple is truly providing value
               | to customers. If third party stores or sideloading is not
               | valuable, most people would continue to use the App Store
               | exclusively. Almost all developers would continue listing
               | their App on the App Store as well. If third party app
               | stores and sideloading do provide value, then consumers
               | will use those methods to get their apps. I don't get why
               | anyone would be less happy to get software directly from
               | a vendor. If I am dissatisfied there is always an
               | intermediary (bank / credit card company) to intervene on
               | my behalf if an actor is behaving badly.
               | 
               | Can you elaborate on why you believe people would be
               | unhappy if this were the case? I truly don't understand
               | the position.
        
               | MomoXenosaga wrote:
               | Users will switch if they can get their apps somewhere
               | cheaper. Most iPhone users are not Apple fan boys.
        
               | tshaddox wrote:
               | Yes, my prediction is that they will do this and that
               | they will then be less satisfied with their iPhone.
        
               | smoldesu wrote:
               | I think more people would be more satisfied with their
               | iPhone if Apple introduced a form of "Enter your Pin
               | number to install $APP_NAME from $APP_REPOSITORY" system.
               | That way, users would know outright that they're not
               | getting software directly from Apple, and are forced to
               | authenticate in order to confirm they want it.
               | 
               | Then both sides win: you get to have your perfectly
               | secure iPhone, and I get to have a device that actually
               | does the things I want it to.
        
               | tshaddox wrote:
               | That is still very likely to result in a worse experience
               | for iPhone users for all the reasons I listed. I don't
               | think Apple's concern is whether they can use their UI to
               | shift blame to its customers when they sideload software
               | that makes them unhappy--they just want their customers
               | to be happy.
        
               | cronix wrote:
               | Why are you allowed to install things on your mac from
               | non-apple sources if this is the case? I didn't have to
               | go to an Apple Mac App store to download VSC from MS. I
               | did have to click a prompt informing me that this program
               | was downloaded from the internet and could potentially be
               | harmful to your device type message, do you really want
               | to install it, though. Has the mac landscape gone to hell
               | with worse experiences, more malware or "software that
               | makes them unhappy" because people can and do install
               | software from non official Apple sources? It's literally
               | the same company. Why does one being a "phone" or "mobile
               | device" change things?
        
               | tshaddox wrote:
               | Mac certainly has more malware than iPhones, yes!
        
               | ARandumGuy wrote:
               | If the iPhone is required to support apps outside of the
               | App Store, that will probably result in a worse user
               | experience for a lot of people. Despite that, I feel that
               | it would be a net benefit to require non-App Store apps
               | on the iPhone. The overall stifling of competition on a
               | locked down ecosystem is worse then the inconvenience of
               | installing a shady app.
               | 
               | And it probably wouldn't be that bad anyway. A vast
               | majority of people will still use the official App Store,
               | like they do on Android. But a more open ecosystem will
               | keep Apple honest, and give more power to the end user.
        
             | Bud wrote:
             | > Apple is the primary reason we have unreplaceable
             | batteries, for example.
             | 
             | This is a goofy fantasy. Apple, which is a minority player
             | in this market, is forcing everyone else to make battery
             | replacements difficult?
             | 
             | No it's not. That's false, and doesn't pass the laugh test.
             | Can we engage with the truth, instead? Is that too
             | difficult?
             | 
             | There are no "economies of scale" here. Phone batteries
             | aren't a standardized part; every iPhone has a customized
             | battery that fits into the odd-shaped space Apple is able
             | to create in the design. Your economies of scale argument
             | is therefore total nonsense.
        
             | criddell wrote:
             | > Apple is the definitive walled garden on planet earth.
             | 
             | I think I would give that crown to Disney. Their parks are
             | literally walled gardens where Disney controls every aspect
             | and profits from every transaction.
        
             | _aavaa_ wrote:
             | Apple does not inflict unreplaceable batteries, or lack of
             | headphone jack, or no power brick withe their phone, or no
             | headphones with phones, or fragile glass backs. They made
             | their choice and the other companies followed along.
             | 
             | I wish they hadn't done some of those choices myself,
             | looking at you glass back.
             | 
             | But Apple did not coerce Samsung to follow along, and I
             | doubt that they made economies of scale issues for the rest
             | of the phone market given their <20% market share.
             | 
             | Samsung makes plenty of ads to take pot shots at Apple for
             | these changes, and then a few months later they themselves
             | follow suit.
             | 
             | I just don't think enough people care about those features
             | to vote with their wallet.
        
           | threatofrain wrote:
           | Also, IAP is separate from Apple Pay. This is a position from
           | the Dutch government on whether Apple may compel app
           | companies to support Apple Pay, and _not_ whether Apple gets
           | its cut. Paying through Stripe does not translate to an
           | ability to dodge the IAP, unless we 're talking about dodgy
           | accounting.
           | 
           | Neither is this a position that app vendors must support
           | multiple platforms such as Apple Pay. This is a win for app
           | makers like PopEyes who really want your credit card.
           | 
           | This is not a win for consumers who want a _choice_ as to
           | whether Apple intermediates their payment relationship with
           | app companies.
        
           | simion314 wrote:
           | Super obvious solution, give the customer the choice. Example
           | you can buy games for PC from the store you like, you want
           | the game to be on your Steam library then you use Steam, you
           | want DRM free you go to GOG , you want to support the indie
           | dev you go to other site: Customer can chose in the majority
           | of games with the exceptions of some big titles (but you can
           | still find EA games on Steam for example).
           | 
           | The only objection to user choice is that the users are
           | stupid and need someone else to chose for them, my answer is
           | Apple has the money to educate the users , they can put a
           | giant ad on TV to tell users about their "virtues"
        
             | darkwizard42 wrote:
             | Yeah but this isn't a choice unless the developer allows
             | for it (and if they do, they can use price discrimination
             | to force users to their preferred platform -- which on each
             | of the game stores, this price discrimination exists
             | today). Lots of developers make their product EXCLUSIVE to
             | a platform and then you don't have any choice but to abide
             | by sometimes a scummier platform's rules.
             | 
             | Apple has undoubtedly made managing payments in their
             | mobile ecosystem easier for the end user to understand. It
             | definitely limits some of the choices for developers, but
             | given what I have seen and experience in the massive
             | failure that is Epic's game store, I think it is not
             | something most consumers will benefit from.
        
               | ThatPlayer wrote:
               | >they can use price discrimination to force users to
               | their preferred platform
               | 
               | And that's why stores get to compete to BE their
               | preferred platform. Software stores are middleman.
               | They've got to compete for both users and developers.
               | 
               | You can't say apps have to be on all stores at the same
               | prices when stores charge different prices to be on them.
               | Or have different requirements to be on the store. Or
               | when stores straight up do not allow your app (Apple with
               | Xbox Cloud Streaming)
        
           | AnthonyMouse wrote:
           | > So; competition states, if their solution is genuinely
           | better, companies will use it. Actually, this is false;
           | companies don't give a shit about their users.
           | 
           | The users are part of the market too.
           | 
           | A lot of people use direct withdrawal from a checking account
           | to pay their mortgage. Because the mortgage lender doesn't
           | have the same incentive as a subscription service to make it
           | hard to cancel.
           | 
           | So you do that for your mortgage, but would you do it for a
           | subscription service you might want to cancel? Heck no.
           | People use credit cards for that. Then if the service won't
           | cancel your subscription you have a last resort the ability
           | to dispute the charge with the credit card company.
           | 
           | Apple makes it even easier but charges even more.
           | 
           | But the choice is really important. Imagine if Apple was
           | taking 30% of your mortgage payment and the bank had to pass
           | that cost on to you. Even the 3% charged by credit card
           | companies would be tens of dollars a month, for an ability to
           | cancel which in that case isn't worth its cost.
           | 
           | So people will choose based on what kind of business it is.
           | If Netflix demands that you use ACH, people will balk. If
           | Apple is providing enough value over the alternatives to
           | justify their fees, people will demand it. And in some cases
           | maybe they are -- customers might demand it for super scummy
           | services they know they'd otherwise have trouble cancelling.
           | So in open competition, the users demand it where it's
           | needed. In the other cases it's not worth the cost.
        
             | GekkePrutser wrote:
             | Credit cards don't work like that in Europe. It's more like
             | a debit card. You don't get the purchase warranty perks and
             | chargebacks are highly restricted. They will sometimes
             | charge back but you have to have real proof. It's not like
             | the US.
             | 
             | This is why credit cards are really uncommon in Europe.
             | Most people just use their debit cards that are free and
             | can also use the regular credit card systems (with the
             | exception of the Netherlands which has a different system).
             | A credit card really only makes sense here if you want to
             | use its credit. And if you do there's cheaper options.
        
               | AnthonyMouse wrote:
               | So then there will be more demand on the part of users
               | for Apple's "you can cancel easily" payment service in
               | Europe, right? You still don't have to force people to
               | use it.
        
               | exoque wrote:
               | Depends on the country, where I live there is no direct
               | debit (Banks have just now begun to replace the old cards
               | ) so most people use credit cards to buy stuff online.
        
           | Maarten88 wrote:
           | > ... a 5% fee. This is roughly in-line with baseline credit
           | card transaction processing fees ...
           | 
           | Dutch consumers mostly pay using IDeal, a payment standard
           | created by all Dutch banks, that costs < 0.5% in fees to
           | merchants. It has fewer consumer protections than what credit
           | cards offer, for that there are consumer protection laws.
           | 
           | These same consumer protection laws should make things like
           | cancelling a subscription easy. Of course many companies fail
           | to do so properly. One day I hope the government will enforce
           | these like Apple protects their platform, and we'll end up
           | having what we have now, just cheaper.
        
           | soperj wrote:
           | >Apple is traditionally very pro-Consumer
           | 
           | Yes, that's why "you're holding it wrong" happened. That's
           | why they didn't replace the CPU in their laptops for half a
           | decade. Because they care about you.
        
             | Bud wrote:
             | How long do you think it's still going to be convincing to
             | anyone with an IQ over 50 to talk about what Steve Jobs
             | said about antenna issues on the iPhone 4? He's been dead
             | for _over a decade now_. Get over it. And come up with an
             | argument that at least comes from the last 10 years. That
             | argument is an embarrassment.
        
               | soperj wrote:
               | That's why they're scanning your pictures. Because they
               | care about you. Happier?
        
               | Bud wrote:
               | Not really, given that they are, um, not scanning any
               | pictures. And even once they start, they will be scanning
               | exactly zero of my pictures.
               | 
               | Also, could we argue in good faith, and not tell lies,
               | and not pretend that there's not a complex issue in play
               | regarding the debate over scanning for child porn? That'd
               | be a lot better. Thank you.
        
           | tshaddox wrote:
           | A much simpler way to put this is: What if I explicitly want
           | a smartphone with a platform where all third-party software
           | has to follow the platform's rules? iPhones will actively
           | become worse for me if third party app stores are allowed.
           | 
           | Or perhaps even more simply: How does making the iPhone
           | platform _more_ like the Android platform somehow give
           | customers _more_ choice?
        
             | Jensson wrote:
             | So what you are afraid of is that people would prefer
             | alternative app stores? If they don't then you have nothing
             | to worry about, as long as the Apple app store has such a
             | huge market share companies will continue to support it.
             | 
             | And if you are right and most Apple user really wants
             | another app store and will flock to them causing companies
             | to abandon the Apple app store then why should your opinion
             | on this matter more than theirs?
             | 
             | > Or perhaps even more simply: How does making the iPhone
             | platform more like the Android platform somehow give
             | customers more choice?
             | 
             | You get just as much choice as before, you can choose Apple
             | hardware and software just like then. Just that choosing
             | Apple hardware and software no longer forces you to also
             | choose their App store as your only way to access other
             | software, so it also alters that choice a bit, but you
             | still have as many choices as before. However just like
             | android you will likely see that almost everyone chooses to
             | use it anyway, so companies will still continue to support
             | it. Your fears are totally unwarranted.
        
               | darkwizard42 wrote:
               | Not parent, but I'm not afraid that people would prefer
               | alternative app stores, I'm afraid that developers will
               | hang shady incentives and dark patterns into getting
               | users to prefer them...
               | 
               | Look at the "choice" we got when Epic opened up their own
               | game launcher/store. It created all these awful
               | exclusives on those platforms and ultimately people still
               | picked the terrible Epic experience (buggy launcher,
               | crashes, etc.) just to get those games. That isn't
               | consumer choice... that is developer choice by
               | incentive/price discrimination/exclusivity.
        
               | tshaddox wrote:
               | No, I'm afraid that iPhone owners would have a
               | significantly worse experience if iPhones allowed
               | alternative app stores, full stop. I'm not concerned with
               | deciding who to blame when users install bad software
               | (and I don't think Apple is concerned with that either).
               | I'm not arguing that my opinion matters more than anyone
               | else's. I am just making an argument for my prediction
               | that customer satisfaction would go down if this change
               | happened.
        
             | stale2002 wrote:
             | > What if I explicitly want a smartphone with a platform
             | where all third-party software has to follow the platform's
             | rules?
             | 
             | It is pretty simple. A user could be given the option to
             | "lock down" their phone.
             | 
             | That way, if you want your smartphone to only allow apps
             | that follow the platform's rules, that would be your
             | choice.
             | 
             | What you wouldn't be able to do, is force other users to do
             | what you want.
             | 
             | That way, you get what you want for your phone, and others
             | get what they want for their phone.
        
               | tshaddox wrote:
               | > It is pretty simple. A user could be given the option
               | to "lock down" their phone.
               | 
               | And I would argue that they have already made this choice
               | by buying an iPhone. At this point it's one of the most
               | obvious and significant differences between the two
               | dominant smartphone platforms.
        
               | Jensson wrote:
               | > At this point it's one of the most obvious and
               | significant differences between the two dominant
               | smartphone platforms.
               | 
               | Only to tech people, typical people see the messaging
               | app, hardware and ecosystem integrations as the main
               | features. Switching from apple to another phone isn't
               | just buying new hardware but also giving up on the entire
               | apple account and ecosystem.
        
               | stale2002 wrote:
               | > And I would argue that they have already made this
               | choice by buying an iPhone
               | 
               | Ok, and an alternative solution, which gives more people
               | choice, is to allow people who buy an iPhone, and lock it
               | down of their own free choice, and allow people who don't
               | want their iPhone locked down to not lock it down.
               | 
               | That way both groups get what they want. You would lock
               | down your phone if you want, and other people, who don't
               | want it locked down would be able to do that, both on an
               | iPhone.
        
         | matheusmoreira wrote:
         | So why does the US keep protecting these rent seekers? I have
         | no idea why they do it. US courts literally said Apple is
         | _entitled_ to other people 's money.
         | 
         | Does copyright benefit anyone other than US companies? I wonder
         | if other nations would accept such a thing if the US didn't ram
         | it down their throats via trade agreements.
        
           | cronix wrote:
           | Those rent seekers pay the politicians rent.
        
       | jacquesm wrote:
       | So, let's just state what's at stake here: who 'owns' the
       | customer relationship. Apple wants to own the relationship, they
       | do not want anybody else to have direct contact with 'their'
       | customers outside of their platform because it allows them to
       | turn the whole thing into a gigantic toll road.
        
         | nomercy400 wrote:
         | That's not true: Their customers most definitely want to have
         | contact outside of their platorm. Phone calls, googling,
         | navigating, gaming, chat apps, social media, web browsing.
         | 
         | If it were true, you would be restricted to facetiming only
         | with other apple users, only make phone calls to other Apple
         | users, only visit 'the Apple internet' with their Safari
         | browser. Whatsapp? Youtube? Facebook? Instagram? Epic? No no,
         | those are not owned by Apple, and not part of their 'platform'.
         | 
         | Suddenly the 'customer relationship' isn't all that clear,
         | hence the national watchdogs looking into anti-competitive
         | behavior.
        
           | jacquesm wrote:
           | I think you misunderstood my argument. Customer here
           | translates to 'the one who is in a billable relationship with
           | a service provider'.
        
         | shagie wrote:
         | I believe that this ties in to the "if you create an account,
         | you must be able to delete it" that came out the other day.
         | 
         | If you're using Apple Pay, the subscription is managed by Apple
         | - and deleting a subscription is rather low friction.
         | 
         | With the "Apple can't mandate Apple Pay" that's currently in
         | the winds (and yes, they'll eventually lose it everywhere), in
         | order to maintain the iPhone customer experience, they're
         | mandating that accounts (subscriptions likely) that are created
         | must be able to be deleted easily too.
         | 
         |  _That_ is going to be a bit of a challenge to companies that
         | want to have you set up an account, use their payment system,
         | and then make it difficult to unsubscribe.
        
         | criddell wrote:
         | Many of the Apple's customers (including me) see that as a
         | feature and not a problem. I like that I can subscribe to
         | something without having to share my personal information with
         | another company.
         | 
         | I understand that I end up paying more than I would otherwise,
         | but Apple doesn't really compete on price.
         | 
         | Perhaps if I was in the EU I would feel differently because
         | they have better data protections.
        
           | travoc wrote:
           | I wonder if you would feel differently if the 30% premium you
           | were paying to Apple on every digital purchase were
           | transparently shown on the transaction.
        
             | criddell wrote:
             | I'd be okay with that. I'd also be okay if regulators
             | forced Apple to allow apps to use outside payment services
             | where the price could be 30% less.
             | 
             | I just hope that Apple would be allowed to say that if you
             | are going to use outside payment providers, you must allow
             | paying through Apple and the outside price can be no lower
             | than 30% (or whatever Apple's cut is).
             | 
             | I don't spend a lot through Apple each year. Maybe $200. If
             | I'm paying 30% more than I would otherwise that means it's
             | costing me something like sixteen cents per day and I'm
             | okay with that.
             | 
             | When I was younger, I used to focus a lot more on price.
             | When Zappos came around it clicked for me that paying more
             | can be smart if the service you get is better. I'll pay
             | $0.16 every day if it means a few times per year I avoid a
             | lot of bullshit.
        
               | coz131 wrote:
               | I don't get what do you mean by "you must allow paying
               | through Apple and the price can no lower than 30% or
               | whatever the cut".
        
               | Nasrudith wrote:
               | Essentially they must allow the user the option of Apple
               | as a payment mechanism to ensure their feature is
               | unbroken. The no lower part is that they can only
               | discount up to whatever Apple's cut would be if they use
               | their own payment mechanism. Related to the first point
               | to prevent "soft disables" like setting Apple pay price
               | at something dramatically worse that few would pay.
               | Charging $13 through Apple and $10 through theirs ensures
               | they get their $10 no matter the customer choice. Or they
               | could call the volume worth the cut and charge $10 for
               | both methods.
               | 
               | Setting it worse opens up effectively a "soft disable"
               | like Apple price at $1000 and their price at $1.
               | 
               | If they for some reason decided to charge $1 through
               | Apple and $1000 through their own that poor decision is
               | no skin off Apple's nose.
        
               | smoldesu wrote:
               | That money isn't being taken from you though, it's being
               | taken from the developer who made that app or service. No
               | matter how you frame it, the developer sets their price
               | and Apple scalps them accordingly. So just because _you_
               | don 't care doesn't mean that the people who are trying
               | to make a living off it shouldn't.
        
             | Jensson wrote:
             | It is ~43% premium. 100 / 70 ~= 1.429
        
           | duped wrote:
           | I agree with you, recently I chose not to purchase things
           | from Etsy because the shops only supported PayPal and
           | wouldn't let me checkout without an account.
           | 
           | But that said, those shops should have a right to choose
           | which payment processors are appropriate for their business.
           | Let the market decide what is the best for the market.
        
           | echelon wrote:
           | > Many of the Apple's customers (including me) see that as a
           | feature and not a problem.
           | 
           | This is almost Orwellian. Imagine Standard Oil customers
           | cheering the demise of the corner mom and pop.
           | 
           | All of this while Apple collects a dossier on each of you
           | that they'll willingly hand over to the FBI, FSB, or Chinese
           | Ministry of State Surveillance.
           | 
           | If none of that convinces you, then do me a favor. A thought
           | experiment.
           | 
           | Imagine an alternate history wherein we replace Apple with
           | Microsoft. Imagine that the iPhone lost and became just a
           | footnote or history and that Steve Ballmer's Microsoft
           | ZunePhone Pro 10 won the market. That's what we all have in
           | our pockets now.
           | 
           | Would you be happy if Microsoft owned the customer
           | relationship? Would you feel just as happy?
           | 
           | Apple is immaterial in this. We don't need companies to be
           | this powerful.
        
             | endisneigh wrote:
             | Is anyone being forced to use The ZunePhone Pro 10 or the
             | iPhone? Android dominates worldwide with a staggering 70%+
             | depending on who you ask.
             | 
             | I do agree that companies shouldn't be so powerful tho
        
           | hectormalot wrote:
           | I think that's okay, I'm in the same position that I trust
           | Apple more in handling this than the apps themselves. Eg I've
           | read some interesting stories on how hard it is to cancel a
           | NYTimes subscription.
           | 
           | What is - on my opinion - problematic is that apple prohibits
           | alternative payment options. Eg I'd be happy to see (8EUR per
           | month with apple [pay now], 7EUR per month direct [register
           | on our website], but even that's prohibited. That is Apple
           | using its position as one of the 2 major phone offerings to
           | prevent competition in a way that I consider monopolistic.
        
             | Andrew_nenakhov wrote:
             | So you also trust Apple better than yourself, because if
             | you will ever find yourself needing an app that Apple
             | blocks, well, you'll have to accept that it is in your
             | 'best interests'.
        
               | r00fus wrote:
               | Have you ever tried to cancel a newspaper/gym membership?
               | It's not easy. I want freedom from my subscriptions.
               | 
               | "Freedom from" is a quite liberating concept.
        
               | criddell wrote:
               | Generally, it's true. If Apple blocked nothing, how many
               | flashlight apps that also mine bitcoin would be
               | installed?
        
               | Andrew_nenakhov wrote:
               | Do not forget that in some countries Apple also blocks
               | apps that the current regime deems dangerous for it.
               | Like, apps of the opposition news outlets, etc. Apple is
               | quite content with taking your freedom away: if you
               | needed it, you wouldn't have relinquished controls of
               | YOUR phone for other people to decide what to run on it.
        
               | criddell wrote:
               | Google does this too. As I understand it, their choice is
               | to remove the app or stop selling devices, software, and
               | services in those countries. This is definitely something
               | that tech companies could do better at. I wish they would
               | choose the latter option just once.
        
               | Andrew_nenakhov wrote:
               | At the present moment, I can easily sideload any app on
               | Android, I can even install a third-party appstore like
               | F-droid (this freedom can be taken away by Google in
               | three future, but still far it is available).
               | 
               | Nothing even remotely similar is possible on non-
               | jailbroken iPhone.
        
               | howinteresting wrote:
               | But even if Google removes it, you can just install the
               | app on Android anyway.
        
               | emn13 wrote:
               | So first of all - just because the end-user wants Apple
               | to check for actively malicious programs doesn't mean
               | they assent to all forms of control. Secondly, even on
               | the matter of software deemed malicious by Apple, I think
               | it's questionable how reasonable it is for Apple to
               | entirely remove the end-user from the decision making
               | process.
               | 
               | Even on really weakly policed platforms like windows,
               | people still tend to leave virus scanners enabled; and on
               | android similarly most people don't choose to expose
               | themselves to unnecessary risk by sidestepping its store
               | - at least as far as I know. Users regularly do really
               | stupid things, so some level of external control is
               | perhaps not unreasonable, but how much, and for what? And
               | should Apple even get to be involved in _that_ decision?
        
             | donarb wrote:
             | So how can Apple make it easier to cancel a subscription if
             | they don't have control over the payment method?
        
               | mattnewton wrote:
               | One way I'd like it to work, us that you can choose to
               | sign up through Apple, and have the service pass their
               | cut % along to you as a greater cost, or sign up without
               | apple's system for presumably cheaper.
        
               | emn13 wrote:
               | By _allowing_ you to pay via an apple controlled payment
               | method; or (less securely) by contractually obligating
               | them to honor centralized cancellation requests.
               | 
               | I'm almost positive many people would gladly pay extra -
               | certainly temporarily - to be sure no untrustworthy third
               | party gets direct access to their money. The question is
               | merely whether apple gets to _force_ that when both end
               | user and app developer would prefer otherwise, and if
               | there are any conditions on such requirements by Apple.
        
           | vanviegen wrote:
           | That might make sense for dealing with a company I've never
           | heard of before, from which I'm just installing an app from
           | the App Store.
           | 
           | But the way I see it, it doesn't make sense when dealing with
           | companies I have a preexisting relationship with, like my
           | phone provider, energy provider, kids' school, work serices,
           | all kinds of online entertainment providers, etc, etc. I may
           | want to be able to interact with them through _my_ phone, and
           | there shouldn 't be any third party controlling and profiting
           | from that interaction.
        
             | Spivak wrote:
             | And they don't. Apple charges 30% on digital goods. None of
             | the things you listed count except entertainment providers
             | in the case where you sign up on the iPhone in which case
             | you didn't have a pre-existing relationship.
             | 
             | "Are you using your iPhone app as a digital storefront for
             | digital goods or services to be consumed on your phone? =>
             | Apple gets a 30% commission"
        
           | jsnell wrote:
           | That's great! Given so many of Apple's customers prefer that,
           | I'm sure the app makers will continue to accommodate you, and
           | offer the two options at different prices. Since Apple being
           | a middleman is so valuable to y'all, I'm sure you'll be happy
           | to pay the 30% extra for that service.
        
             | Spivak wrote:
             | I see this argument a lot and it makes zero sense. If your
             | customers are currently paying you $15 for your app why
             | would you suddenly undercut yourself and start charging $10
             | when you could keep charging $15 and pocket the extra $5?
             | 
             | Maaaaybe competition would force you to drop prices but a
             | lot of consumer software isn't fungible and doesn't really
             | compete on price.
             | 
             | Taking away Apple's 30% cut shouldn't be talked about as a
             | pro-consumer move because it isn't. There's this pot of
             | money that is either going to go to the app publisher or
             | Apple. That's who the fight is really between.
        
               | disiplus wrote:
               | but it does not work like that. because you know that you
               | would get a lot more customers if you cut your price
               | 20-30% while keeping your profit margin. a smaller price
               | is a great way to get customers on board and keep them,
               | especially those that have only small benefit from your
               | software. im paying for example for youtube netflix,
               | evernote and so on although basic or none would be enough
               | based on how little do i use them, but the price is low
               | enough that it's ok for me. i used to privately use
               | pirated version of MS office before it was this small
               | monthly payment and so on.
        
               | nicce wrote:
               | > but it does not work like that. because you know that
               | you would get a lot more customers if you cut your price
               | 20-30% while keeping your profit margin.
               | 
               | That is very situational and hard to predict. There is a
               | whole discipline behind this statement for figuring out
               | the right answer.
        
               | jsnell wrote:
               | Well, criddell's claim is that there are a lot of people
               | who really prefer to use Apple's payment system rather
               | than a third-party one, such that apps that don't support
               | Apple Pay will lose their business.
               | 
               | If those people really exist in large quantities (and I
               | can believe they do!), the developer is losing business
               | by not providing Apply Pay as an option. But that'd just
               | lead every single customer to use Apple Pay, which is not
               | what the developer wants. So you need to somehow give the
               | people an incentive to choose your version, unless they
               | really think that going through Apple is giving them a
               | lot of value. Differential pricing seems like the most
               | obvious way of doing that.
               | 
               | > Maaaaybe competition would force you to drop prices but
               | a lot of consumer software isn't fungible and doesn't
               | really compete on price.
               | 
               | That seems implausible. If you think that software prices
               | don't matter at all, such that lowering prices does not
               | increases sale, it'd follow that raising prices doesn't
               | lower sales either. In that case, why hasn't the
               | developer already raised prices?
        
               | Spivak wrote:
               | Lowering prices probably would increase sales, but the
               | problem is that is might also lower net profit which is
               | the thing you actually care about. If you're a SaaS app
               | charging $6/mo and you have a 100k MAUs then congrats
               | $600k gross revenue per month! You lower prices to $4/mo,
               | your users rejoice, and your sales and marketing find all
               | the people who wouldn't buy in at $6 but would at $4
               | which happens to be 25k new users -- 25% growth! Amazing!
               | Pop the Champagne! But now your gross revenue is $500k
               | and you have more users to support.
        
               | jsnell wrote:
               | But we weren't talking of just changing the price and
               | keeping everything else the same. We were talking of not
               | having to pay Apple, and passing the savings along to the
               | consumer. With your numbers, the revenue was not
               | 600k/month to start with. Apple was taking 180k of that,
               | leaving you with 420k/month. So you getting 500k and
               | Apple getting nothing sounds like a pretty good deal.
        
               | Jensson wrote:
               | Most games have extremely tight margins. Taking away 30%
               | of their revenue means that many of them fails and will
               | never make another game or that their budget for the next
               | game becomes significantly lower. Both of those hurts the
               | consumers interests.
               | 
               | If it was just 5% or so then sure it wouldn't be very
               | noticeable, but just taking 30% outright is huge and will
               | push many from being viable businesses to being forced to
               | stop. The appstore isn't like steam which gets you a huge
               | ecosystem of extra features for your games and tons of
               | marketing. I'd pay extra to be able to add a game to
               | steam even if I bought it elsewhere simply because steam
               | adds so many other things.
        
               | [deleted]
        
             | r00fus wrote:
             | They're free to do so for Android devices.
        
             | fzil wrote:
             | > I'm sure you'll be happy to pay the 30% extra for that
             | service.
             | 
             | if that's how things worked then we wouldn't be having all
             | this commotion. Part of the reason why devs are going after
             | apple is because they /can't/ charge more on iOS compared
             | to other platforms and they /can't/ explicitly state that
             | they have to pay 30% to apple.
        
               | jacquesm wrote:
               | Exactly. It's as if the mob is your 'businesspartner' and
               | you can't tell your customers that you have to pay them
               | off, nor can you tell them to come to your home after
               | closing to buy it there for the real price.
        
               | jsnell wrote:
               | > Part of the reason why devs are going after apple is
               | because they /can't/ charge more on iOS compared to other
               | platforms
               | 
               | That is not true. As a specific counter-example,
               | subscribing to YouTube Premium via the iOS app costs
               | extra compared to subscribing to it via the website or
               | Android.
        
               | Jensson wrote:
               | Is that true in general or did Apple and Google make a
               | special deal on this? Apple and Google are very friendly
               | to each other so I see why Apple would let them do this.
        
               | criddell wrote:
               | You've been able to pass on the 30% fee to customers in
               | the form of higher prices on iOS since 2011.
        
               | fzil wrote:
               | I see, I stand corrected then. I'll have to take a closer
               | look at their store ToS.
        
           | p_j_w wrote:
           | >I understand that I end up paying more than I would
           | otherwise, but Apple doesn't really compete on price.
           | 
           | Don't they have rules that companies aren't allowed to charge
           | a higher price for services on Apple devices than elsewhere?
           | Seems to me they DO try to compete on price here. They want
           | to have their cake and eat it too, and they absolutely should
           | not be allowed to.
        
             | criddell wrote:
             | They did have that rule at the start but it was changed
             | some time ago.
             | 
             | If you subscribe to Spotify in iOS, it costs more than
             | doing so over the web. I think this is ultimately going to
             | be a huge problem for Apple because they directly compete
             | with Spotfiy.
        
           | chrisfinazzo wrote:
           | Seeing all of the ancillary legal fallout from the Epic Games
           | trial is convincing me that the EU learned the wrong lesson
           | from the US' dealings with Microsoft in the 90's.
           | 
           | The OEM model (at least for computing platforms) is how the
           | world works. Fragmenting it helps no one, save for perhaps
           | the software freedom crowd.
           | 
           | They continue to fight the old war and at some point, it just
           | might come back to bite them.
        
             | chrisfinazzo wrote:
             | Alas, downvotes. To those who disagree with me, what's the
             | alternative? It just seems like the EU is fundamentally
             | opposed to this model which would mean _any_ company is no
             | longer in charge of their own destiny.
             | 
             | "There's no advantage to being a platform owner? Eh, OK,
             | let's just not bother trying then."
             | 
             | It's a bad look.
        
               | smoldesu wrote:
               | Apple can still provide all of the OEM features if they
               | really want, the obvious solution here is to give people
               | the _option_ to install third-party things (eg. Please
               | enter your PIN number to confirm a third-party
               | installation) and then boom! You 're finished.
               | 
               | It's quite obvious that the only reason Apple _hasn 't_
               | added that feature is because they have no intention on
               | losing their stranglehold on the App Store. Without sole
               | propriety of software, Apple's value proposition starts
               | to crumble. So, why should we let them keep it? What do
               | we, as a society, gain from letting Apple be the richest
               | company in the world? The answer is nothing, and
               | eventually some day when they go under we'll come to the
               | realization that it was all a zero-sum game anyways.
        
         | [deleted]
        
       | f6v wrote:
       | I get that there's an anti-monopoly sentiment. And we've all
       | heard the arguments many time. Let's not forget that mandatory
       | cookie banners turned into a complete shit-show. They were
       | supposed to benefit the users. But are they not just an annoying
       | distraction?
       | 
       | My point being, people might still use AppStore as they do. Just
       | the whole government-mandated experience becomes much less
       | convenient.
        
         | berkes wrote:
         | Thats a clear fallacy.
         | 
         | Just because an entirely different government entity (the EC)
         | enforced a practice that has different outcome than expected,
         | does not, in any way, predict how this private entity (a local
         | market-watch and local court) will work.
        
       | ffritz wrote:
       | I want to point out that if you want to release an app, be it for
       | fun or otherwise, it's going to cost you 100$ per year to have
       | Apple list it in the app store.
       | 
       | One hundred dollars per year for the privilege of them judging
       | your app and maybe even get it rejected.
       | 
       | They made tinkering around so ridiculously unattractive, because
       | every app needs a business model (unless you are okay with eating
       | the 100$ every year).
       | 
       | There need to be other stores or distribution methods.
       | Desperately.
        
         | clusterfish wrote:
         | You also need to buy Apple hardware to develop iOS apps, and
         | keep regularly updating it so that it supports latest versions
         | of xcode and iOS, which is at least another $100/year.
        
           | grishka wrote:
           | Or you could install hackintosh on whatever hardware you
           | already have, or run macOS in a VM.
        
         | s_dev wrote:
         | What offended me most about the $100 is that when Apple replied
         | to 'Hey!' email they explicitly mentioned they had never
         | charged Hey a penny for distributing their app on the App
         | Store.
         | 
         | They don't even consider the $100 Developer fee a real fee.
        
         | ksec wrote:
         | >I want to point out that if you want to release an app,
         | 
         | I want to point out if you want to release a Safari _extension_
         | , be it for fun or otherwise, it's going to cost you 100$ per
         | year to have Apple list it in the app store.
         | 
         | But in fairness Apple has made it clear that is $100 for using
         | their API.
        
         | sorry_outta_gas wrote:
         | > They made tinkering around so ridiculously unattractive
         | 
         | 100$ a understaement,just keepting them workable between ios
         | and xcode releases is non-trivial.
         | 
         | myself I have about a 4-5 pretty apps that were useful (to me
         | and a few people at least) that just don't work anymore.. I
         | could spend time fixing them but I'm time limited and don't use
         | macos as my primary platform anymore
         | 
         | the intentional short shelflive of software on that platform is
         | just crazy to me; like I know Apple does it to have the store
         | 'clean it self up' over time but that's insane there's piles of
         | software that just dosen't exist anymore
         | 
         | like what happens if an accident happens and a solo developer
         | passes-away? their work is as if it never existed
        
           | shadilay wrote:
           | Android has the same problem where they drop apps that don't
           | target an API version released in the last 5 years or
           | something. After losing all the apps I bought on early
           | versions of iOS and Android it really soured me on buying
           | anything so I haven't bought an mobile app in years.
           | Photoshop CS2 still works on Windows though!
        
             | foepys wrote:
             | I don't think Google drops then, just prohibits updates.
             | Apps usually keep working but no guarantee for complex apps
             | that depend on changing APIs (like the DnD change with
             | Android 5 or so).
        
       | ElectronShak wrote:
       | duh..
        
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