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Judge in Fortnite case holds Tim Cook's feet to the fire

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Re: Judge in Fortnite case holds Tim Cook's feet to the fire

#21
post #5

Earlier quoted context omitted.

They would just stop making the phone.

Or they'll loudly whine and then follow their orders like Microsoft did back in the day.

Getting short-term compliance is the easy part. But the hard part is calculating how this changes the business incentives of a company and how they adapt to this compliance over time.

What orders did Microsoft follow in specific, what are you referring about? Let's see how this has actually impacted their business today.

Re: Judge in Fortnite case holds Tim Cook's feet to the fire

#22
post #7
post #5

Earlier quoted context omitted.

They would just stop making the phone.

> They would just stop making the phone. Stop making their high margin hardware that integrates into paid Apple services? The same phone that works with other massively popular Apple hardware, such as Air Pods? Extremely doubtful. Apple will not cut off their nose to spite their face. Maybe you have less faith in Apple than I do. I believe they can succeed enormously without their monopoly. They make great products.…

HN is just a massive downvote crew nowadays without any arguments. Since the karma system does not penalize this behavior it is widespread.

Re: Judge in Fortnite case holds Tim Cook's feet to the fire

#23
post #4

Earlier quoted context omitted.

The slogans are easy but you need to define what "ecosystem" is so we understand the system-wide implications of these attitudes. Can I for example go to Walmart and setup my own store inside their store without having to ask them? Can I do the same in your local mom-and-pop store?

It's interesting to consider what the effect of breaking up Walmart into constituent parts (either vertically or horizontally) would be. I'd be willing to bet it'd be a net-positive for the economy. The same is true for the majority of companies that large.

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Re: Judge in Fortnite case holds Tim Cook's feet to the fire

#24
post #16

Earlier quoted context omitted.

The kind of ecosystem/business model that Apple has created is so fundamentally different from everything else that real world analogies just don't work. We should avoid using them in this debate.

I wasn't using an analogy. I was literally talking about: if this is a law, how it'll ACTUALLY impact every business. If you think what Apple has created is different, again, define it. Let's see how it's fundamentally different and where the line is.

Can you please explain how you go from the hypothetical future of "Apple's 30% app store cut is found to be illegally anti-competitive" to "Walmart would be forced to allow random competitors to open stores physically inside them".

Re: Judge in Fortnite case holds Tim Cook's feet to the fire

#25
post #4

I really hope the concept of "you can't be anti-competitive if you own the entire ecosystem" dies.

The slogans are easy but you need to define what "ecosystem" is so we understand the system-wide implications of these attitudes. Can I for example go to Walmart and setup my own store inside their store without having to ask them? Can I do the same in your local mom-and-pop store?

Wouldn't it be more like any games you bought at GameStop would force you to pay a cut to Gamestop from inside the games in-game store? ...that GameStop has nothing to do with.

Re: Judge in Fortnite case holds Tim Cook's feet to the fire

#26

I really hope Epic will release a gaming phone. It appears they have enough cash, enough clever people, and a good connection to Chinese manufacturers through their partners. If they make it Android-based but Open Source, similar to how the Unreal Engine contains proprietary components while remaining easy to customize, that could be quite the popular move for grabbing market share from Apple and Google. I, at least,…

Hmm, sounds like Amazon's ecosystem, which has hardly been a competitive success.

We don't need more vertical silos, we need a horizontal playing field.

Re: Judge in Fortnite case holds Tim Cook's feet to the fire

#27
post #4

I really hope the concept of "you can't be anti-competitive if you own the entire ecosystem" dies.

The slogans are easy but you need to define what "ecosystem" is so we understand the system-wide implications of these attitudes. Can I for example go to Walmart and setup my own store inside their store without having to ask them? Can I do the same in your local mom-and-pop store?

Obviously there’s a spectrum of scenarios.

In the 80s and 90s breaking up AT&T local loop unbundling made a huge positive change in telco in the us.

Requiring the power company to rent pole space has a positive benefit.

I think the App Store is more like a utility pole than a Walmart. Forcing Apple to unbundle the infrastructure of delivery, payment and signing would allow for competitive forces and innovation.

The AppStore is all built around PKI. My company already operates an internal enterprise store — the metaphor exists. It would be pretty straightforward to evolve it into something different and arguably better.

Re: Judge in Fortnite case holds Tim Cook's feet to the fire

#28
post #15
post #3

Good! It's about time that our industry's monopoly of the ages is put to bed. Apple put us in the kettle and slowly turned up the heat. They delivered good hardware, good software, but at the same time demanded that nobody else have the ability to run JIT, other runtimes, first-class web, browsers, marketplaces, etc. Over time, Apple rose to 50% of the market, all the while exacting complete control and taxing all ma…

I agree - the service Apple are offering for recurring payments is that of a payment processor. In a competitive market that role takes 2-3% at most. And that percentage has been falling year on year as new entrants have entered the market. How does a company disrupt the Google/Apple phone duopoly? Even Microsoft spending hundreds of millions of dollars couldn't do it.

Even on PC, where there's plenty of store competition, the only way to get much lower than 30% seems to be to seriously cut corners - Epic's own store famously lacks standard features like a shopping card, and people have had problems with buying multiple games in succession seperately triggering anti-fraud measures that stop them from doing so, so they're not exactly doing great even at the payment processing part. And they're quite openly subsidising that from their Fortnite profits as well in many ways.

Re: Judge in Fortnite case holds Tim Cook's feet to the fire

#29

I really hope Epic will release a gaming phone. It appears they have enough cash, enough clever people, and a good connection to Chinese manufacturers through their partners. If they make it Android-based but Open Source, similar to how the Unreal Engine contains proprietary components while remaining easy to customize, that could be quite the popular move for grabbing market share from Apple and Google. I, at least,…

It might be too outside Epic's wheelhouse. How about a Tesla phone?

Re: Judge in Fortnite case holds Tim Cook's feet to the fire

#30
post #4

I really hope the concept of "you can't be anti-competitive if you own the entire ecosystem" dies.

The slogans are easy but you need to define what "ecosystem" is so we understand the system-wide implications of these attitudes. Can I for example go to Walmart and setup my own store inside their store without having to ask them? Can I do the same in your local mom-and-pop store?

I don't see this as an accurate comparison. You can already rent a space right next to Walmart and open your own store if you like. Yes, I may have to pay a landlord, but again, there's competition among owners of land that keeps rents at a market rate.

You can think of the space within an ecosystem as virtual land. Apple has a monopoly on this virtual space. They can charge whatever they like, there is no competition.

The argument of choose another phone is different, because it requires spending a large amount of money for the right to entry. To many people this is cost prohibitive.

I don't have a personal stance on what the outcome should be either way, need to dig into it more.

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