Earlier quoted context omitted.
> If they want more ads, they can change the APIs to inject them. Reddit wants freedom to arbitrarily change the design of their app and placement of ads, etc. Ads are a huge (primary?) source of revenue for them. If they are tethered to supporting third party clients, it's harder to make reasonable estimates of how many captive users will see ads or new features. Reddit could enforce ad presentation in third party c…
you can just charge third parties the cost to cover loss of ad views Except that's not what Reddit is doing here. They're charging 3rd party clients ~21X what they lose in ad views, pricing them completely out of the market.
Credible citation needed
EDIT: Okay I see the 20x figure in the article