Apple and Meta fined millions for breaching EU law

The "free riders" aren't developers in general, they're the developers not paying for their portion of the upkeep. Like I said, someone has to pay for the dev work that goes into making the platform, building the SDKs and maintaining the whole thing. No one works for free. So Apple can get that paid for either by charging more for hardware, charging for access to the dev kits, or taking a cut of sales for products produced with those dev kits. Apple chose the later.

So now they have a problem, not all software is monetized. You want to have the ability for people to choose to distribute software for free. Open source projects, educational, charity, and also "accessory apps" (think your bank app). But you don't want to charge developers money that they're not making. Imagine the shit storm Apple would stir up if they just started charging free apps a monthly fee to be listed in the app store at all. You also want to have young and new developers without a lot of capital to have access (that's why so many companies used to offer student discounts). But the problem becomes how do you allow that, and also allow in app downloads and purchases without every developer just having a "free" downloader app that then downloads the real application code that you pay for separately?

Let's say you sell a dev tool. And you decide you want to support open source projects, so you offer free licenses to any open source project. Would it satisfy your licensing if some company that had an "open source" curl wrapper that downloaded and executed binary blobs for which there was no source code? I doubt it. You'd rightfully say that an app that does nothing except download and launch closed source binary blobs is not in and of itself an open source project for the purposes of your license. It's the same basic idea for Apple. An app that only serves to download or unlock the "real" app after you pay the developer in a separate external transaction is not a "free" app of the sort Apple intends to allow. So they don't allow external transactions at all except for a narrow set of circumstances, and in those cases they don't allow steering. This maximizes the number of developers who are funding the costs of the platform, reducing the overall cost for all the developers who are paying and subsidizing a limited set of developers who are distributing free applications.

Or to try one other way of thinking about it, everyone hates the "freemium" business model. How much crappier would it be knowing that all the "freemium" games were paying absolutely nothing, but everyone who chooses not to engage in the freemium model still had to pay 15-30% to apple on their revenue?

> The person who paid for the sdk is the person who bought the iphone.

Are they? Then why did companies previously charge per seat annual licenses for their SDKs? Were the people who bought the computers and products back then not also paying for the SDK?

Clearly the answer is "who is paying" depends on the model you set up. You can take your income stream from the initial hardware sales, or you can take it from subscription fees, or you can take it in revenue sharing models. Apple chose the latter, and so every developer that finds some way to use the platform and not share their revenue is a "free rider" relative to the other developers who are now subsidizing them.

>If apple made $0 off the app store, would they still make iphones? I would assume yes since they are profitable devices. Hence this isn't free riding.

It's not "would they still make phones" they might. It's "would they still make phones that 3rd parties can develop applications for at the same price they currently charge and without per seat annual $1k+ up front license fees to prospective developers."

They're also very used to lobbying to get what they want, as soon as that's not possible, they have a tantrum.

> And yes I know we can all scoff and say “oh poor multi-billion dollar Apple can’t get paid but getting paid is exactly how Apple is a multibillion dollar company.

The entire discussion there could be summed up as people have become convinced that Apple the multi-billion dollar company should shift revenue to Facebook or Netflix (or whoever), the other multi-billion dollar company. Fantastic marketing by them to convince people this is a moral thing to do and must be done. It has nothing to do with small developers or better experiences for customers, just an increase in X for Netflix.

> But someone has to pay for the costs of developing the SDKs and the platform.

The business model Apple has used since the Macintosh is that the hardware subsidizes the software. I paid for the platform when I bought the device. The only reason why there's even a "free rider problem" is that Apple believes itself entitled to a 30% cut of half of mobile, forever.

Furthermore, we've known since the failure of OS/2 (at least) that expensive development tools almost guarantee zero software uptake. The platforms that win are the ones where the developer tools are affordable or free. In other words, it is not the third party developer's job to pay for the platforms they rely upon. It is the platform's job to pay (in a roundabout way) for the third-party software.

In fact, that's why Apple even has a reader app exception. They know Netflix doesn't have 30% to give and they know nobody's going to buy an iPhone that won't play Netflix.

The reality of Apple's business model is that they absolutely could give away the platform, make money off the phones and the OS, and remain profitable. But investors don't invest into profitable companies. They invest into growing companies. Tim Cook has to treat developers' bank accounts as his own because that's the only thing that makes Apple stock valuable.