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Y Combinator files brief supporting Epic Games, says store fees stifle startups

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Re: Y Combinator files brief supporting Epic Games, says store fees stifle startups

#3

I recently wrote about how Apple now has the most hostile developer ecosystem of any major platform: https://www.magiclasso.co/insights/apple-development/ Good to see VCs and Y Combinator now supporting and pushing for change.

A family member of mine has an Apple phone, and the lack of availability of not just open source software but even freeware or freemium software astounds me. They make it so difficult to distribute anything, that it's not worth it unless you are getting significant revenue. This means that often the only option is something extremely scammy that charges monthly for the most trivial capabilities.

Of course, Apple gets a 30% cut in any scams, so they have absolutely no incentive to do anything about it, and really their policies are what create it, in the first place.

Re: Y Combinator files brief supporting Epic Games, says store fees stifle startups

#4
“A 30% revenue share can easily be the difference between a company that can afford to scale, hire new employees, and reinvest in its product, and one that is perpetually struggling to stay afloat.”

This brought up a fun thought exercise for me. Pretty sure that Y Combinator would argue that giving away 7% of one's company for access to intangible (but beneficial) things like funding, advisors, etc, is completely worth it for a company. Pretty sure that they also fund companies that pay salespeople fairly significant commissions on sales.

Interesting to see them argue that asking a company to give up 30% "commission" on revenue for access to a large market stifles competition and innovation.

Is Y Combinator's forcing companies to give up 7% of their companies for access to advisors and funding stifling innovation and competition? (Spoiler: I don't think so. I think both Y Combinator and apple should be able to capitalize on the access they provide.)

Re: Y Combinator files brief supporting Epic Games, says store fees stifle startups

#5
Time to see what the next move for Apple will be if they lose the appeal. Because I doubt Apple will be content to lose money on the ruling and will look to collect the fees elsewhere. Without the ability for developers ship iOS apps with no business relationship to Apple you're still pitching your tent on someone else's land.

Re: Y Combinator files brief supporting Epic Games, says store fees stifle startups

#7
> “Y Combinator — and the larger venture capital community — have long been hesitant to back app-based businesses that were poor investments due to the Apple Tax,”

This could be good, if it encourages people to re-learn the value of open standards, like Web is supposed to be, rather than helping to perpetuate the proprietary app stores.

Also, I think it's noteworthy that, once a company gets customers locked into a proprietary app store, they show their true extremely greedy, abusive, and indifferent side to third-party developers. No matter how warm and fuzzy a brand they craft for consumers.

Are Bay Area libertarian techbros ironically going to try to rely on government regulation to keep the awful proprietary app stores tolerable, or will they rediscover what industry has known for decades about the value of open standards, and direct their efforts consistent with that?

Re: Y Combinator files brief supporting Epic Games, says store fees stifle startups

#9
post #5

Time to see what the next move for Apple will be if they lose the appeal. Because I doubt Apple will be content to lose money on the ruling and will look to collect the fees elsewhere. Without the ability for developers ship iOS apps with no business relationship to Apple you're still pitching your tent on someone else's land.

If there is one thing I've seen Apple do reliably over the past 20 years, it's being able to comply with rulings in the most malicious and hindering way possible. They'll be just fine with no difference to their bottom line.

Re: Y Combinator files brief supporting Epic Games, says store fees stifle startups

#10

“A 30% revenue share can easily be the difference between a company that can afford to scale, hire new employees, and reinvest in its product, and one that is perpetually struggling to stay afloat.” This brought up a fun thought exercise for me. Pretty sure that Y Combinator would argue that giving away 7% of one's company for access to intangible (but beneficial) things like funding, advisors, etc, is completely wor…

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