Comment by cush
2 years ago
Apple and Tesla aren’t competing in the same market
> It’s like complaining that Teslas don’t support CarPlay
It would be like that if the Tesla dash App Store somehow generated $1.1T annual revenue while taking 30% off the top of third party app manufacturers, while using that revenue and their own competitive advantage (not paying 30%) to grow and erode secondary markets via their own first party apps
Why does the percent taken matter? How much is appropriate? Ultimately they’re transparent about the fee, the choice is the developers.
In any case there should be a way to put your phone into some insecure mode and then you can explicitly download any app you want, yes.
But about Tesla - if you could make money, lots of money, selling Tesla dash apps, who cares if they take 30%? The alternative is today, you don’t really make anything at all.
> Why does the percent taken matter?
These are legitimate businesses taking aim at Apple's predatory anti-competitive behavior. If the percent taken was 0, there would be no case. Why does it matter? Because profit margins
> How much is appropriate?
It depends. That's what this case is about. In the case of Spotify, probably 0% because Apple is their largest direct competitor. It's the definition of anti-competitive.
> Ultimately they’re transparent about the fee, the choice is the developers.
Stop saying there's a choice... There's no choice. Again, that's what the whole case is about. The market is what it is. Consumers are using iPhones. A business like Spotify can't choose to reduce their revenue by 50%. They have a fiduciary duty to their shareholders.
> if you could make money, lots of money, selling Tesla dash apps, who cares if they take 30%?
You keep missing the part where Apple is a direct competitor. So in this very terrible analogy, say my app was a music app, and after seeing that my music app is making lots and lots of money, Tesla releases their own music app, they would effectively earn 30% of my revenue and could freely use it to drive my business into the ground. 30% extra to advertise, do research and development, and acquire more music licenses. It's impossible to compete in a market where your competitor has their hands in your pockets. So in that (again very terrible) analogy, yes it would be anti-competitive, and who cares? I would.
We should agree to disagree. Perhaps in your world the government makes profit illegal and everyone is happy.
I will say your whole thing about Spotify reducing revenue by 50% is also just wrong. Apple along with others are the one who curated such users willing to pay to begin with. How much would they be making if the iPhone didn’t exist? If android didn’t exist? Clearly google and apple respectively should profit off their effort.
My last comment will be: despite what you keep on saying, companies do have a choice. That’s why there are both iOS and Android exclusive apps and businesses.
1 reply →
Apple is not transparent about the fee at all. Developers are not allowed to use other payment processors, can't mention that prices are cheaper elsewhere, or tell users why the prices are higher.
How is that transparent?