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Apple, Epic, and the App Store

stratechery.com

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Re: Apple, Epic, and the App Store

#2
"This case asks us to draw the line between anticompetitive behavior, which is illegal under federal antitrust law, and hypercompetitive behavior, which is not."

I feel this contradiction within me when I find myself promoting and praising the growth hacks and 'doing whatever it takes' mentality startups employ and then subsequently realizing that at the same time I would probably shame and criticize the same tactics if the same company got large.

Re: Apple, Epic, and the App Store

#3
post #2

"This case asks us to draw the line between anticompetitive behavior, which is illegal under federal antitrust law, and hypercompetitive behavior, which is not." I feel this contradiction within me when I find myself promoting and praising the growth hacks and 'doing whatever it takes' mentality startups employ and then subsequently realizing that at the same time I would probably shame and criticize the same tactics…

You should not shame and criticize Apple for being anticompetitive, you should lament that the US is not a fair playing field when it comes to anti-trust investigations.

Apple is under no obligation to behave fairly. Many (not me) would argue the opposite.

Re: Apple, Epic, and the App Store

#4
post #2

"This case asks us to draw the line between anticompetitive behavior, which is illegal under federal antitrust law, and hypercompetitive behavior, which is not." I feel this contradiction within me when I find myself promoting and praising the growth hacks and 'doing whatever it takes' mentality startups employ and then subsequently realizing that at the same time I would probably shame and criticize the same tactics…

That gets at the crux of the problem: hyper-competitive behavior can become anti-competitive when you are powerful enough and have enough leverage to make anti-competitive behavior part of your strategy. The line between "anti-competitive" and "hyper-competitive" today isn't a line, it's a big messy gray area.

It's pretty hard for an underdog or tiny startup to be anti-competitive because they simply don't have the leverage to do it. They can still be dishonest or immoral, it's just hard to be monopolistic when you're not anywhere close to being a monopoly.

Re: Apple, Epic, and the App Store

#5
post #2

"This case asks us to draw the line between anticompetitive behavior, which is illegal under federal antitrust law, and hypercompetitive behavior, which is not." I feel this contradiction within me when I find myself promoting and praising the growth hacks and 'doing whatever it takes' mentality startups employ and then subsequently realizing that at the same time I would probably shame and criticize the same tactics…

Uber is the prime example of this. They broke many laws and regulations in order to provide a better product/user experience without much punishment to get to where they are today. If Uber started breaking more laws today they would be shot down very quick.

Re: Apple, Epic, and the App Store

#6
In the spirit of this particular story, I'd like to ask HN the following question: Should closed hardware (that owns its entire stack) even be legal to sell?

Yes, it's legal today but should we make it illegal?

To try another example besides Apple iPhone, consider the $35000 Prima Cinema movie server to play 1st run movies at home on day of release: https://www.google.com/search?q=%22prima+cinema%22&source=ln...

In many iPhone debates, we throw around phrases such as, "unlike a game console, it's a general computer" and "I own the device so I should be able to put any software I want on it".

Understandable sentiments. So the question is, should consumers be able to knowingly buy restricted hardware such as Prima Cinema? They pay $35000 and own the computer but they know they can't sideload their own movies. They know can't pick another "movie store", or watch Youtube/Netflix on it, etc. The hardware has anti-tampering sensors so that it bricks itself if the owner tries to open it. The hardware is a "general pc". It runs Wind River Linux. I think the cpu is x86 but it might be ARM or something else.

You can't argue that Prima Cinema should not be locked down (claiming anti-competitive behavior) because the paranoid film studios wouldn't even license their content if it wasn't. If a buyer wants to have 1st run movies at home, all those restrictions in place is they only way to get it. It's more restrictive than iPhone in that sense.

Re: Apple, Epic, and the App Store

#7
post #3
post #2

"This case asks us to draw the line between anticompetitive behavior, which is illegal under federal antitrust law, and hypercompetitive behavior, which is not." I feel this contradiction within me when I find myself promoting and praising the growth hacks and 'doing whatever it takes' mentality startups employ and then subsequently realizing that at the same time I would probably shame and criticize the same tactics…

You should not shame and criticize Apple for being anticompetitive, you should lament that the US is not a fair playing field when it comes to anti-trust investigations. Apple is under no obligation to behave fairly. Many (not me) would argue the opposite.

That's why I try to reflect on my feelings when I can because they aren't rational. I have to remind myself it's the fiduciary duty of companies to take legal advantage of any opportunity the law gives it.

Re: Apple, Epic, and the App Store

#8
This particular company decided to grow financially by cutting apple from a revenue stream. Apple invested billions of dollars in rnd, PR , legal protection, security, servers etc... Behemoth like Epic decided to ignore that, at the same time still using apple services and platforms. Such a simple case to me. The funny part is I never heard from small company that gain traction from apple store that it's bad. It's a social lift for them. But once you grow , you forget about it... and start complaining...

Re: Apple, Epic, and the App Store

#9
> but the benefit [the App Store arrangement gave] to developers was much less clear cut.

I disagree, I think the fact that so many developers built apps for iPhone supports my point. Apple gave developers everything they needed, users with dollars to spend.

Re: Apple, Epic, and the App Store

#10
post #3
post #2

"This case asks us to draw the line between anticompetitive behavior, which is illegal under federal antitrust law, and hypercompetitive behavior, which is not." I feel this contradiction within me when I find myself promoting and praising the growth hacks and 'doing whatever it takes' mentality startups employ and then subsequently realizing that at the same time I would probably shame and criticize the same tactics…

You should not shame and criticize Apple for being anticompetitive, you should lament that the US is not a fair playing field when it comes to anti-trust investigations. Apple is under no obligation to behave fairly. Many (not me) would argue the opposite.

That is not a pragmatic view. Law works on assumption that most of the society will follow them (under moral or social pressure) and few rogue people will be punished appropriately. If everyone starts breaking the law, no Police/Govt will be able to contain it.
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