Apple has a monopoly for apps stores on iOS devices.
> A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity.
Commodity: Apps sales on iOS. Only supplier: Apple.
Apple use their monopolistic market position to enforce a 30% levy on third parties. It has nothing at all to do with Google, since Google cannot compete with Apple to provide app stores on iOS.
Even bringing Google up is an attempt to shift the conversation from the app store situation on iOS to something off-topic and irrelevant (handset market share). That's not what we're discussing.
Let's go through the markers of a monopoly:
- Profit maximizer: Maximizes profits.
Yes.
- Price maker: Decides the price of the good or product to be sold, but does so by determining the quantity in order to demand the price desired by the firm.
Yes.
- Single seller: In a monopoly, there is one seller of the good, who produces all the output. Therefore, the whole market is being served by a single company, and for practical purposes, the company is the same as the industry.
Yes, Apple is the exclusive provider.
- Price discrimination: A monopolist can change the price or quantity of the product.
Yes.
So the Appe Store on iOS checks all the markers of a monopoly. But people want to pretend the monopoly designation can only apply to traditional market segments without justification.