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EU says Apple’s App Store breaks competition rules after Spotify complaint

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Re: EU says Apple’s App Store breaks competition rules after Spotify complaint

#12
The core issue here is Apple favours their own product over competitors as they control their store. In this case, the product happens to be Music [0].

> The Commission is concerned that users of Apple devices pay significantly higher prices for their music subscription services or they are prevented from buying certain subscriptions directly in their apps.

This doesn't seem to be a general issue about the 30/15% charge. It's specific to products (in this case Apple Music) on the App Store where Apple has a competitor. This was bound to happen the moment Apple started launched their "services" strategy.

[0] https://ec.europa.eu/commission/presscorner/detail/en/ip_21_...

Re: EU says Apple’s App Store breaks competition rules after Spotify complaint

#13
post #2

Unpopular opinion: This was a no brainer. Apple wanted 30% (or was it less for subscriptions?) on any business that used apps, no matter if they used apple infrastructure or not. Just think about it: one company is in practice entitled to 30% of what any other business makes (in any industry)!! Also, I think apple brought this to themselves by picking a fight with Spotify (on Watch support).

> Just think about it: one company is in practice entitled to 30% of what any other business makes (in any industry)!!

1. No, this is limited to the AppStore, those businesses can operate elsewhere.

2. What's the alternative? How is any business entitled to free or low-fee access to a platform that Apple built and maintain?

Re: EU says Apple’s App Store breaks competition rules after Spotify complaint

#14

Maybe I’m too cynical, but how will Apple get out of this? What’s the trick they’ll use this time? After all, this is only a “preliminary view.”

They might just increase their fees. Or increase their pricing on other products.

Re: EU says Apple’s App Store breaks competition rules after Spotify complaint

#15
post #2

Unpopular opinion: This was a no brainer. Apple wanted 30% (or was it less for subscriptions?) on any business that used apps, no matter if they used apple infrastructure or not. Just think about it: one company is in practice entitled to 30% of what any other business makes (in any industry)!! Also, I think apple brought this to themselves by picking a fight with Spotify (on Watch support).

> Just think about it: one company is in practice entitled to 30% of what any other business makes (in any industry)!! 1. No, this is limited to the AppStore, those businesses can operate elsewhere. 2. What's the alternative? How is any business entitled to free or low-fee access to a platform that Apple built and maintain?

Well, Apple has created a bunch of rules to address #1.

For example, you cannot sell the same goods outside the store with a 30% discount.

Re: EU says Apple’s App Store breaks competition rules after Spotify complaint

#16
post #6
post #2

Unpopular opinion: This was a no brainer. Apple wanted 30% (or was it less for subscriptions?) on any business that used apps, no matter if they used apple infrastructure or not. Just think about it: one company is in practice entitled to 30% of what any other business makes (in any industry)!! Also, I think apple brought this to themselves by picking a fight with Spotify (on Watch support).

Should add, the ruling is not really about the validity of the 30% fee. What EU seems to argue is this: 1. Apple is in phone business, Spotify music. So far so good... 2. Then apple wants to get into the music business too. Now they have an unfair advantage since Spotify must pay 30% to apple while apple music "pays" 0%. So apple use their dominance in one area (phones) to get an advantage in a totally different area…

I agree with this principle but in this specific case it’s not true because Apple started their music business long before the iPhone and Spotify existed. In fact they started with the iPod and their music business with the iPod is what lead them to invent the iPhone and the AppStore. It’s rich from other music businesses like Spotify to want to benefit from all of the R&D and innovation cost from Apple and the market they created whilst dismissing that in fact they entered the music market with the goal to eat shares from Apple and not the other way around.

Re: EU says Apple’s App Store breaks competition rules after Spotify complaint

#17
post #3
post #2

Unpopular opinion: This was a no brainer. Apple wanted 30% (or was it less for subscriptions?) on any business that used apps, no matter if they used apple infrastructure or not. Just think about it: one company is in practice entitled to 30% of what any other business makes (in any industry)!! Also, I think apple brought this to themselves by picking a fight with Spotify (on Watch support).

How is that unpopular? I think all but a fairly vocal minority of people (probably direct/indirect beneficiaries) would agree.

The vocal minority are very active on HN's voting mechanics.

Re: EU says Apple’s App Store breaks competition rules after Spotify complaint

#18
post #2

Unpopular opinion: This was a no brainer. Apple wanted 30% (or was it less for subscriptions?) on any business that used apps, no matter if they used apple infrastructure or not. Just think about it: one company is in practice entitled to 30% of what any other business makes (in any industry)!! Also, I think apple brought this to themselves by picking a fight with Spotify (on Watch support).

> Just think about it: one company is in practice entitled to 30% of what any other business makes (in any industry)!! 1. No, this is limited to the AppStore, those businesses can operate elsewhere. 2. What's the alternative? How is any business entitled to free or low-fee access to a platform that Apple built and maintain?

> How is any business entitled to free or low-fee access to a platform that Apple built and maintain?

I’m sure many businesses would be perfectly happy to have no access whatsoever to the platform Apple built and maintain (platform meaning the App Store in this context), but if they want to ship on iOS (which is where all the money is), they have no choice.

Re: EU says Apple’s App Store breaks competition rules after Spotify complaint

#19

Maybe I’m too cynical, but how will Apple get out of this? What’s the trick they’ll use this time? After all, this is only a “preliminary view.”

They cut the 30% tax down in some cases(I am still waiting for the fanboys to admit that this would never had happened if not for the large number of investigations running).

Next will probably give to EU guys a convoluted way to unlock you phone but will shame you for it, probably put a watermark on a screen that you are a communist or pedo if you use the unlock device feature.

Apple needs a Microsoft moment, a moment where they realize what are their strengths and focus on that and stop with the FUD and anticompetitive bullshit.

Re: EU says Apple’s App Store breaks competition rules after Spotify complaint

#20
post #9

It's not clear to me from the article what remedy they're proposing. Seems like it could be any of: * Drop the 30% fee * Drop the 30% fee for apps the compete directly with Apple apps. * Allow users to install other app stores.

I don't think they're proposing anything at this point but the obvious remedy would be to allow third party payment options.
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