For anyone curious why Google lost:
Epic v. Google [...] hinged on secret revenue sharing deals between Google, smartphone makers, and big game developers, ones that Google execs internally believed were designed to keep rival app stores down.
Without finding the same thing in Apple, I doubt this will affect Apple's case much, but of course I should mention I'm not a lawyer; I'm perfectly happy to be schooled if someone more knowledgeable comes along!
Apple doesn't need to strike secret deals to keep out alternative app stores because they've made alternate app stores completely impossible.
If the result of this case is "you can have a monopoly as long as your device and ecosystem are 100% locked down", that's terrible!
Monopolies aren’t illegal. Only the abuse of a monopoly position to advance your interest in other markets is illegal.
E.g. It’s not illegal to be the only seller of gasoline in the country. It is illegal though to bundle laundry powder with gasoline sales to corner the laundry powder market.
So for example, if you had a dominant market position for a particular category of phone operating systems, and you wanted to advance your interest in the market for app distribution...
Seems like you could make that apply to any product right? If you can define the market as literally just your own product? Like if Joe's Coffee has a dominant market position in selling Joe's Coffee it would be monopolistic to use that to advantage to sell donuts?
There is a difference between selling donuts in the coffee shop and preventing anyone who drinks your coffee from buying a competitor's donuts.
They aren't preventing anyone from buying a competitor's donuts. At one point I had both an Apple and a Google Android phone. Apple preventing other app stores on iOS is more like Starbucks preventing Peet's from coming into its stores to sell its coffee. That's not monopolistic behavior.
I think it is more lake the mayor allowing his son to open a Starbucks in the city but preventing everyone else from opening a Peet's because he is concerned about how that might negatively affect the image of the city in the eyes of coffee enthusiasts as he has no control over coffee prices and quality there.
IMO this isn't the correct take. Starbucks' stores are their own property and as long as they follow applicable laws regarding public accommodations, health and safety and the like they're free to run their stores however they want to. Where I live, we've got a plethora of Starbucks but we've also got Peet's and a whole bunch of small coffee roasters/shops that seem to be doing just fine. To me, Apple's App Store is the same way - it's Apple's property, run by Apple and branded by Apple. Everyone who develops for it knows the rules and (for the most part) follows them, because Apple makes sure you read the rules in multiple different places.
I'm not asking to be the mayor of the App Store, just the mayor of my own phone.
If you want to have an analogy along those lines, Apple is more like a Starbucks prohibiting coffee bean providers other than the ones it has agreements with from coming into Starbucks locations to sell their coffee beans.
No but it's not just going to a competitor's donut shop, it's losing your family group chat, cloud storage, apps you've paid for, integration with your laptop, tablet, earbuds, smart watch, etc, etc. Apple has on purpose (there are verified transcripts of execs talking about it) built a walled garden ecosystem that is incredibly hard to leave.
Yes, the other coffee shop doesn’t remember my name and my regular morning order. I’ll have to start afresh.
Seems to me the analogy holds.
You mean your existing shoes, pants, or shirt won't let you enter the other coffee shop, and the expensive coffee mug you bought at the old shop (which was the only place they would allow you to buy one) won't hold coffee from any other brand so you have to ditch that too. Now you're getting closer
So is Apple the building that contains a Starbucks or the business known as Starbucks? It seems like it’s both — that is a problem. Is Starbucks charging its customers steep costs for entering the building? Where does the existing App Store with its large transaction fees and restrictions around billing fit into this analogy?
Isn't the resolution the same in each case? If you have an iPhone and you want to install an app from another store, you have to buy another phone. It's the same with these deals with Android, just overt.
In most cases I can buy a donut from a competitor's and eat inside the coffee shop as long as I buy some product from the said coffee shop.
Apple prevents that I bring an outside donut from competitor's, while Android allows it. That is basically the difference.
I don't know what restaurants you frequent, but I can't think of anyone being okay with bringing outside meals or beverages. Probably you are just not kicked out because staff is not noticing or apathetic.
I only know of the concept of Corkage, where you pay the restaurant a fee if you bring your own wine to drink:
https://www.webstaurantstore.com/blog/2626/corkage-fee-guide...
Or you know, they don't care as long you're a paid customer.
BTW, I didn't say anything about restaurants. Coffee shop in general have much more of a lax atmosphere, so they generally don't care too much.
And, to extend the analogy, paying the coffee patrons you think might consider opening a competitive donut shop next door to avoid that from happening (ie Google).
"Coffee patrons" would be consumers - literally paying consumers to not shop at your competitor is just offering extremely low (i.e. negative) prices, which may be perfectly legal depending on the context.
Paying off gamedevs would be analogous to paying off dough-makers (or doughnut bakers?) to only supply your store, and not your competitor, which would be super illegal. AMD sued Intel for very similar activity, and won.
Wouldn't Epic be paying game developers to only put games in their store? Don't console exclusives work this way all the time?
Epic already does that and has a number of exclusives to their store, like Alan Wake 2. They also will pay devs to have it exclusive to their store for a year.
Maybe we should ask, how many people make a living through that market?
People that are not employees of the company that holds dominant market position.
This sort of argument is exactly why good programmers are usually not good lawyers (and vice versa, of course).
especially if you created a product that a large part of the world's population at the time of creation agreed was something new and defined a new category so much that a new category was created in general language to describe things like your product and other products came along later from competitors and defined themselves using that same category name - for example if someone came up with a phone that was smarter than other phones and coined the term smartphone for that then yeah, it would be like that.
This exact same argument works for Nintendo, Sony PlayStation and the Xbox
They all have closed application ecosystems and don’t allow third party stores.
This isn't a gotcha; consoles should be required to support homebrew games as well.
Interesting question - since they charge a flat fee and revenue sharing model based on sales it is not like Google who had a secret deal with Spotify and Netflix.
Honest questions: I thought Playstation and Xbox had "secret" deals? They have their own studios, they buy exclusives, timed exclusives, special promotions, games optimized for platform A but not for B etc?
Also Nintendo is a player - funny how Epic did not take Sony/Microsoft/Nintendo to court over their closed ecosystems.
I mean...I agree, but as things stand, they aren't.
It's one thing to say "this is how the law should be, so that Apple should have to open their platform"; it's quite another to say "as the law is right now, Apple should have to open their platform."
US antitrust laws are nominally extremely broad and are basically down to the courts to interpret, so what the law is right now is whatever you can convince the judge, which largely a matter of making a convincing argument that what they're doing is bad.
If the courts get it wrong then you have to go to Congress, sure. But then you're in the same place -- convince Congress that it's bad.
Either way we're having a debate about whether it should be allowed. And the answer is no -- this business model is anti-competitive, for any business, and if existing interpretations of the anti-trust laws don't currently prohibit it, they should.
I don't think they should be allowed to lock things down either, but if given the constraight of what is instead what ought to be, then Apple should market the iPhone then as a specialized console, not as a general purpose device
Except the App Store was added to the iPhone before it reached its current level of ubiquity.
I believe Apple views the App Store as a feature of the iPhone that contributes to its value - the huge variety of apps available definitely contributed to the iPhone’s success; see the Windows phone for an example of a phone without a good App Store.
fwiw I completely agree, but isn't this the inverse of the argument people make for why Apple deserves 30% of app revenue? Do app devs deserve a huge chunk of iPhone revenue since they contributed to its success?
Both those things can be true at the same time: it's a mutually beneficial arrangement.
I agree, which is why I think its a silly moral justification for the 30% split.
definitely they view it that way, as well as viewing the app review process as something that adds customer value. I mean they were quite clear on all that from day 1, that they thought they were solving customer problems. And of course when you think you have solved customer problems you expect to get rewarded, and then some years down the road your solution isn't that great anymore but you just don't want to let go of any of that sweet, sweet reward.
100% correct. I was involved in the Netscape Microsoft anti trust case and this is specifically the finding that led to their loss (way too late for us)
The jury found that Google has a monopoly on the Android platform. That would extend to Apple and iOS, but I’ll be shocked if that finding is turned into a legal precedent that is upheld on appeal.
For one thing, the jury is probably more technically savvy than the judges that will ultimately decide this case.
Monopolies are not illegal. It’s leveraging the monopoly to exert force on adjacent markets that is. In the case here googles foul play is making side deals for preferential treatment against other app stores given their control over the handset operating system. Apple doesn’t offer an App Store market and never has nor ever represented otherwise, the app store is and always has been part of the operating system. This isn’t true for Google. Maybe for you and I this is splitting hairs, but splitting hairs is 99% of the law.
According to https://www.justice.gov/archives/atr/competition-and-monopol... it does not have to be about adjacent markets. Maintaining a monopoly alone can be illegal, depending on the means.
Blocking all other means of distributing apps in a reasonable way absolutely should have been enough to get Apple sanctioned. Blocking alternatives with economic incentives is now forbidden, but blocking the access using code is allowed. This is stupid.
But sure, jury trial. And also US judges in this area are especially broken, with their warped understanding of when a monopoly is harmful.
---
Of course the other part of this is stupid as well. It should be illegal to have a monopoly, and it's the job of the government to break monopolies to enable competition. The US has it completely backwards here, and this is a big reason why that country is failing in key areas of economic development and infrastructure.
The US actually had it right when the antitrust laws were written. The Libertarian Party and Austrian Economists fucked it up for the rest of us by convincing everyone that "no, actually, antitrust is just about prices and consumer welfare, not control". This interpretation was ahistorical and illiberal, but it became history regardless, like to the point where Originalism as applied to antitrust law is derided as "hipster antitrust".
America's failings in economic development and infrastructure are not strictly caused by monopolization of the economy. South Korea's economy is run by like three chaebols[0] but they have working infrastructure. The problem with America is that we have a government that doesn't like to spend money, plus a group of illiberal, antidemocratic NIMBYs who make budgeting impossible by jacking up the cost of projects after they've already been estimated and committed to.
Since I already shat on the Libertarian Party, let me shit on the Democratic Party next. California and New York have legal climates that are unusually hospitable to NIMBYism. They figured out how to weaponize environmental review laws, to the point where actual reports about environmental infrastructure necessary for mitigating or surviving climate change say that we can't build the infrastructure because it'll get tied down in NIMBY red tape. In California this manifests as delays, cancellations, and massive wind farms in Wyoming; in New York it's cost overruns as bribes are paid to whoever can look the other way to get things passed through. Either way we can't build shit in our most populated states.
If there's a root cause for all of this, it's "vetocracy". In a democracy, when a decision is made, the people on the losing end of this decision agree to lose. However, since at least the 1970s, there has been several parallel movements to roll back decisions already made and form new mechanisms to prevent new decisions from being implemented. Antitrust was a rollback, NIMBYism was a new mechanism, but in either case, we're being dragged out of our brief experiment with liberal democracy by people who stand to gain from it.
[0] The Korean for Zaibatsu[1]
[1] The Japanese for Chaebol[0]
This is not really what the courts said (and to my knowledge the people who said it weren't members of the Libertarian Party or Austrian Economists).
The actual quote from the Supreme Court is, "It is competition, not competitors, which the Act protects."
The idea here is that, for example, if Walmart can undercut you on price and you go out of business, that's harm to competitors but not competition, because Walmart is only able to do that by offering the same product for a lower price. They can only do it by competing, and only for as long as they continue to outcompete the alternatives. As soon as they tried to raise prices or reduce quality, competitors could spring up to take the market from them.
That isn't what Apple is doing. If you want to offer an app store for iOS that only takes a 5% cut, Apple will actively interfere with you -- and then they take a larger cut despite the existence of prospective competitors willing to take less. That's not consumers choosing the incumbent because they're the most competitive, it's the incumbent preventing consumers from having a choice. It's harm to competition.
If you define a market small enough literally everyone is a monopoly and preventing competition. Apple has competition from other Android manufacturers. This is like complaining that Walmart has a monopoly on who can put shelves up in their stores. If Apple and/or Google were preventing other Smartphone OSs from getting developed or used, by abusing a monopoly position, then this could be considered a monopoly. But that is not what these cases are about. It's almost literally the shelves in walmart example
The way you define the market is by considering whether there are viable substitutes.
For example, two parking garages across the street from each other are strong substitutes. You can easily pick either one based on e.g. which has the best price. But a parking garage in New York and a parking garage in Boston aren't in the same market, because you can't reasonably park your car in New York and get out and walk to your destination in Boston.
You can easily have viable substitutes for app distribution on any given platform. Windows has a first party store but you can also install apps with Steam or download them from the developer's website. The Windows store and Steam are in the same market, so neither of them has a monopoly on distributing Windows apps. The same as two parking garages across the street from each other, or a Walmart and Target in the same mall.
If the operating system prevents competing app distribution methods, there is no longer any viable substitute for the official one. This is what the OEM wanted, right? No competition for their app store -- no substitutes, a monopoly. But then that's just what it is. You don't have to monopolize markets ancillary to your primary one, but if you do, you have.
But once four or five different competitors have tried, had Walmart drop prices again to undercut them, and gone out of business, no one else is going to try because they'll know they're doomed to fail.
Competitors are required in order to have competition. The Chicago School interpretation of antitrust is as intellectually bankrupt as it is morally.
Suppose Walmart has the lowest price for batteries. The local hardware store goes out of business. Now Walmart doubles the price of batteries.
The local grocery store is going to start selling batteries. Walmart has to lower their price again or people will buy them there instead. If they do, the grocery store will still eventually sell their stock to customers who value convenience over the lowest possible price. They may not restock them unless Walmart raises the price again, but as soon as they do, batteries are back at the grocery store.
If Walmart never raises their prices the grocery store may never start carrying batteries, but then Walmart can never raise their prices.
Just to defend the libertarians briefly, no legal bullying tactics means trusts have a significantly harder time forming and maintaining their monopolies.
Not sure how you reconcile (il)legality of something with libertarianism - by definition bullying is legal there?
I mean that without IP laws, a whole lot of things become a lot harder to bully smaller companies with.
Mafia foes not need legal tactics
There's a name for that condition: corruption
It is a societal disease that is vicious and hard to get rid of. It makes bad situations worse even when everyone says that they agree on a solution and want to make it happen.
Antitrust laws are one way to prevent and maybe even remove corruption, but they only work if the people writing the laws and enforcing the laws are not corrupt.
Some parts of that infrastructure seem to be having serious problems now:
https://news.ycombinator.com/item?id=38539167
Thanks for the footnotes, made my day! :lol:
Lol, what?
I'm from Northern Europe, where running a 3% deficit is seen as edgy and daring.
"In FY 2023, the federal government spent $6.13 trillion and collected $4.44 trillion in revenue"
I don't think that's stupid. Blocking access using code is an honest act. Everyone knows the rules and can build their business accordingly. Blocking alternatives with economic incentives is manipulative. It gives the impression that the platform is open to competition, when it isn't.
Blocking access using guns is an honest act. Everyone knows the rules and can build their business accordingly.
Therefore, I support the Mexican drug cartels
Just a slight clarification. The first Apple iPhone did not have an app store.
I think what they meant could be rephrased as, "for as long as there's been an App Store, it's been part of the OS. "
What does thad mean "part of the OS"? It is not built into the kernel, and is therefore no part of the OS. I do not see why the same would not apply to Apple. But maybe the US legal system is just totally broken ...
There's plenty of parts of an OS that aren't the kernel.
You are playing semantics - "He is not a slave, he is an endantured servant, nothing wrong here"
I'm rephrasing another person's statement to clarify what (I believe) they meant.
Separately, that's kind of a gross choice of comparisons.
Which I believe is also false. The jailbroken appstores predate the apple appstore.
It was added to the original iPhone with iPhone OS 2.
"Apple doesn't offer an App Store market" is just assuming the conclusion. Nobody expects you to get competing app stores from Apple -- you get them from Apple's competitors. What Apple ought to be in trouble for is interfering with their operating system customers' ability to patronize competing app stores.
This isn’t illegal. Equivalent to a “No outside food and drink” sign or not letting randos sell things in your own storefront
It’s not illegal just because you don’t agree with the philosophy of a closed ecosystem
Obviously not equivalent.
In that case, someone else owns the storefront. I own my phone, not Apple.
If Apple would like to claim that I merely lease my phone, they need to update all their marketing so it isn't misleading. They should also be on the hook for repairs (without AppleCare), and all the other responsibilities that typically accompany a leased product.
But it wouldn’t because I don’t think that’s what it means.
They appear to have ruled that Google has a monopoly because they’ve been squashing everyone else who should have been able to make an App Store by Google’s policies.
Apple isn’t squashing anyone, they just don’t allow it in the first place.
So I don’t think this would apply to Apple because of the line of reasoning. I know most people on hacker news think Apple should be forced to allow alternate app stores, but I don’t think this ruling can be used for that. It appears you would need something else.
Apple actively squashes attempts to jailbreak the phone which allows for additional app stores. The fact they aren’t mainstream alternatives is because Apple takes actions to stop the competition.
Two markets ARE at play for consumers: mobile phone hardware (with OS) and mobile app stores/apps. Apple is using it's monopoly in the former to create/enforce a monopoly in the latter.
You can tell there are two separate markets because you, the consumer, make (at least) two separate purchases to participate.
In the case of Apple, it's the same market. Because the only way to get access to the App Store is through an iPhone bought from Apple. And the only way to run an iOS app is with the same iPhone.
Yes, but this is only because Apple designed the phone that way. Apple should not be immune from antitrust law purely because they decided not to allow competition.
They do allow competition. Build your own phone and your own app store.
So by that argument if MS would have disallowed installation of any other browser it would have been OK, because competitor could just build their own operating system.
The whole argument is that Apple is leveraging the position in one market (hardware) to gain advantage in another market. Your answer is "competitors can always build their own hardware" don't you see that this is a nonsensical argument?
If it was from the start, yes. Just like they don’t support replacin explorer.exe, the network stack. If you allow competition, but use leverage to stiffle it, it’s bad.
sigh That's not what I meant.
Apple decided where the boundary of competition lies by deciding to bundle their phone, their operating system, their app store, and their code signing policies into a package deal. A thicket of copyright laws forbid you from unbundling any combination of these. For example, I can't legally run iOS on my Pixel 8 Pro. It is legal to run Android on an iPhone, except the hardware boot ROM is designed to reject anything not signed by Apple, and Apple won't sign Android. You can circumvent that by taking advantage of security vulnerabilities in the boot ROM[0], and that's legal, too, but you can't legally tell anyone about those vulnerabilities because telling people how to break copy protection is a felony.
This same logic applies to application software. It's legal to jailbreak[1] your phone to install non-App-Store apps, but illegal to provide the jailbreak tool necessary to install those apps. If Epic had decided to release a jailbreak to install the Epic Games Store, instead of releasing a hotfix for third-party in-app billing and suing for antitrust, Tim Sweeney would have been thrown in jail for violating 17 USC 1201.
In copyright law, there's a concept of copyright misuse, which is what the courts call using copyright to break antitrust law. Copyright allows you monopoly control over your work, but you are not allowed to use that control to maintain an illegal monopoly that's outside of the copyright bargain. In other words, you don't get to opt-out of forms of competition you don't like. Congress decides those.
So no, "build your own phone and app store" is not enough. And letting Apple dictate the conduct of their competitors is effectively giving them antitrust immunity.
[0] Which are, BTW, once-in-a-decade. We've had a grand total of two bugs that can be used to install alternative operating systems on an iPhone.
[1] Jailbreak bugs aren't as scarce as boot ROM bugs, but they've been getting scarcer over time. This is not because Apple is doing a good security job, but because the NSA is hoarding all the good bugs for themselves.
That's like saying that everything in the US is legal, since you're perfectly able to renounce your citizenship and move to Somalia where there aren't any laws.
Hmm making the argument that apple has a monopoly on the phone market is not easy though.
I my opinion the two markets are: Providing apps on iPhone, and offering payment processing for apps on iPhone. Apple is using its absolute monopoly on providing apps to also entrenched itself in the market of providing payment for apps.
I mean, it's far more than that. Most importantly:
While IANAL - even as a plebe I can pretty easily tie refusing to allow third party app stores to both refusing to supply an essential facility, and product tying.
Why should my choice of hardware or OS dictate the apps I'm allowed to install? That's 100% product tying. It would be one thing if third parties just had no interest in supplying an alternative app store. It's another thing entirely to lock them out via your monopoly on the ecosystem.
Do you own an iPhone? I suspect that the vast majority of people complaining about Apple's "lock down" are people who don't even use an iPhone.
If you do own an iPhone ... why the heck did you buy one knowing its limitations. It's like buying a pink shirt when you hate pink, despite the availability of shirts of other colors, then going to the manufacturer to complain about the color.
I can't speak for others, but I'm an iPhone user, and I'm complaining!
Because:
• Almost everyone I know uses iMessage exclusively.
• I very strongly dislike Android's UI design.
• I strongly prefer iPhone hardware.
Any two of these would be insufficient to offset how furious I am that I can't decide what code runs on my own damn phone! But taken together, Android just doesn't make sense.
I jailbroke my iPhone for years, despite the many inconveniences of running an outdated version of iOS, but Apple's security has just become too good.
Some specificity is required when discussing legal concepts like tying and essential facility.
For tying, while not a firm ‘rule’ the most common application of tying is limited to the ‘tied’ product being from another market when compared to the ‘tying’ product. Also, the current appellate court standard (worded semi-informally) is that a tying of products raises antitrust concerns when it restricts competition AND provides no benefit to consumers.
As to essential facility, the most impactful factor for the plaintiff (as in the hardest burden for the government to overcome to establish monopolistic abuse) is as follows: the plaintiff is REQUIRED to prove that the compelled permission to competitors to utilize the “facility” does not interfere or allow for detrimental effects of the dominant firm’s ability to serve its own customers.
Apple’s historic marketing speak and other ‘on the record’ statements about the app store’s exclusivity ensuring tight control for the security of Apple’s customers is directly written to advance defenses to these two claims.
You can certainly argue that Apple’s conduct is characterized as abuse of monopoly, but there arguments against that can also be compelling.
The above IS NOT and should not be considered legal advice.
It should be though. Unchecked monopolies, duopolies and oligopolies are antithetical to a free market economy - they stifle competition and make the market un-free as well:
- for employees, they're bad because monopolies (or cartels) suppress their freedom to go to a better employer. The best case to look at is actually the tech sector, where large corporations colluded to keep compensation down [1], but there's also more evil cases like WalMart that go as far as underpay their employees so badly that they can only survive on food stamps [6].
- for suppliers, they're bad (in the correct term of a monopsony) because having only a few (or only one) buyer depresses their ability to get fair prices for products, e.g. in agriculture [2], or in WalMart [3][4]
- for customers, they're bad because they can't (realistically) go to alternatives, especially if the monopoly in question has extinguished competitors by advantages of scale - again, WalMart is a nasty example [5].
- for society as a whole, they're bad because, again, large actors like WalMart can devastate vibrant community centers like malls, leading to dereliction of entire neighborhoods in a domino effect [7], and eventually the erosion of local tax bases, leading to funding issues for basic government services.
[1] https://en.wikipedia.org/wiki/High-Tech_Employee_Antitrust_L...
[2] https://usceconreview.com/2022/07/06/america-where-even-sust...
[3] https://www.businessinsider.com/wal-marts-suppliers-feel-pre...
[4] https://www.wsj.com/articles/wal-mart-ratchets-up-pressure-o...
[5] https://www.investopedia.com/terms/w/walmart-effect.asp
[6] https://www.cnbc.com/2020/11/19/walmart-and-mcdonalds-among-...
[7] https://www.cnbc.com/2020/06/20/how-mall-closings-in-america...
Some markets only support a natural monopoly though. If you forcefully break up every monopoly you'll always be in court, because after winning the case and breaking up a company, the next natural monopoly will form within a few years.
The best compromise is to only go after them if they're abusing their position. I agree the standards for that are too low though.
Agreed, particularly in agriculture and other rural scenarios it's very common that there is effectively one seller/purchaser for entire classes of goods. But there is barely any government oversight authority to watch over these or where any affected party can raise grievances.
Except the US government is constantly opening antitrust cases and successfully prosecuting violators on a monthly basis, you probably just never hear about it.
https://www.justice.gov/atr/antitrust-case-filings
If we see fair competition reducing fees massively in android vs Apple, Apple’s abuse will be clear
This. It isn't productive to think about this like "Google lost, Epic won" or "Google lost, Apple won".
Rather think about this as Google lost, Android won. If this ruling goes trough, Android becomes an more open platform by default. Think about it: Steam, itch.io and GOG stores on Android.
Unless Apple has a most favored nation clause—another legal practice that should be outlawed
What we will see is that you will need a different app store for every game on android, while on iOS you can get them all from the App Store.
The only thing that will be clear is that Apple got it right the first time by not allowing other app stores.
Just this part alone would applies to Apple the same way
And the Judge found in Epics favour on that point. Apple have a temporary reprieve, but there is an injunction ordering them to allow developers to advertise other means of payment.
I mean sure, but in a practical sense the company becoming the only seller of gasoline happened through anti-competitive behavior and not just because they have a superior gasoline product. I think that two app stores controlling 100% of distribution and setting their rates similarly feels pretty anti-competitive.
If two companies end up in that situation without breaking the law, then there’s nothing wrong with it legally by definition.
It becomes an issue for the legislature to fix. Not the courts.
There has been several prominent cases where Apple removed some app from the store just to bring out an app in the same space. Also Apple products don't have the same restrictions as others when in comes to ads, api etc. To me that sounds quite clearly like like they are abusing their monopoly position.
Perhaps, but that is not what Epic vs Apple was about.
That doesn't make the premise any less ridiculous; it's only illegal to pressure people not to make a competitor, if you make it technically impossible to have a competitor, that's all fine.
Being charitable, these are two different juries. It's a little annoying that, in a country where iOS is the dominant OS, the iOS monopolist is exonerated and the non-iOS monopolist is recognized- nonetheless this is still a big win for consumer rights.
I think there are a lot of laws about this. Guys get nicknames like "The Trust Buster" for going after them.
ipso facto, if the monopolist doesn't even let a market exist then by definition they're not abusing it.
What about this landmark case:
https://en.m.wikipedia.org/wiki/United_States_v._Alcoa
I don't get it, so no company can provide a walled garden? Or at least, not if they're successful? That doesn't make sense to me, why is that not an acceptable and desirable feature for some people?
You don't have to buy an iPhone, this isn't like a railroad or a telecom that owns all of the possible infrastructure. If you want a walled garden get an iPhone. If you want freedom with all that implies, go Android.
You can provide a walled garden. But that's not Apple does.
Instead, Apple is a mafia that shakes down all the vendors for the right to sell in their semi-open market square.
If Apple iOS were a walled garden, it would have contained only Apple applications.
When someone comes to your store and says "I'll wreck your store unless you cut me 30% of your revenue" that's the mafia.
When someone comes to your store and says "I made the streets and regulate the power, water supply, sewer, and everything else in this place, cut me 30% of your revenue in taxes" that's the government.
And you'd do well to not confuse those so haphazardly. Apple didn't come to your app and with no cause blackmail you to get your money. They created an ecosystem that did not exist before, and they have to maintain it. Paying for it is completely rational.
That's exactly what Apple does. If you make a mobile app (for example, a presentation manager) you _have_ to support iOS, or you will go out of business.
As a developer, you simply don't have a choice. You have to either support iOS, or get out of mobile apps entirely.
What? That’s not true. There are plenty of Android-only developers.
Any example of a major Android-only app for the US?
Beeper Mini, Fortnight, several Google apps.
Keyword: major.
Fortnight is the only example, and it's on its way to SCOTUS. Google apps, which one?
Fortnite has an iOS version. They just stopped being able to update it because of Epic's shenanigans.
Not gonna lie, all of these examples are pretty weak because all of them are in circumstances that 99% of developers are never going to be in.
Beeper Mini replicates native iOS functionality - it's obvious why it can only exist as an Android-only app.
Fortnite is the product of a massive studio, whose decision of not publishing it on iOS was deliberate as part of their anti-monopoly lawsuits. They can easily afford to do it because Epic Games has other revenue sources, alongside with running Fortnite on pretty much every other platform imaginable.
Google doesn't really cash in on their more niche apps, publishing them on iOS is unlikely to change anything for them. However, not choosing to publish them gives Android - their own product - a tiny boost in appeal due to exclusive functionality.
You said "As a developer", not "As a major developer".
You could, however, give as much of the product away as you can for free (less $100 a year for developer account) and then Apple is basically paying you to distribute it on their platform. That's definitely not the mafia.
If you want to charge money, Apple will collect it for you and take a cut. If you don't want that deal, you can still distribute your app for free, you just can't charge money for it in the app. You can still charge money for the service, but you have to do that on your own website and infrastructure (a la Netflix, etc.), not Apple's.
Basically, you can't make money. Duh. You can't even place a link for a third-party payment system (the case to allow that is on its way to SCOTUS).
Apple is a mafia.
"They want money from my app when I want money from their store! Therefore I'm a victim and they're a mafia."
Seems to me you're not noticing the Kremlin levels of cognitive dissonance in your statement here. With this severe lack of self-awareness, if you were in Apple's place you'd be way worse than they are right now.
You realize that free apps still have to pass all the Apple rules in order to get in the store right? If they disagree with anything about your app, then you're blocked. I think that's a good thing for consumers (or at least it would be if they allowed sideloading for people who don't want to be controlled) but that doesn't change the reality that as a developer, Apple is the mafia.
I'm not up to date on Apple's current rules, but for years they have strictly forbidden you from directing users to your website to complete a purchase. You weren't even allowed to mention any other payment options in the app.
Apparently you read only half the comment. Do you understand the distinction between destruction and construction or don't you?
By your logic there would be no towns, cities, countries, unions, companies, any kind of organization at all. Because any time you need to pay for something, you feel like it's the mafia.
- Is it the mafia when it comes time to pay time for rent. "I HAVE to pay rent or I'll be kicked out on the street!"
- Is it the mafia when it comes time to pay your bill at a restaurant. "I HAVE to pay my bill or I'll be hungry!"
No one owes you anything. You ask for money for your apps, don't you? Because why are you complaining otherwise? 40% of $0 is $0, isn't it? But you require money, despite maybe someone could be like "you're mafia unless I can play your game for free".
Things cost money. Grow up and start acting like an adult.
Are you a part of mafia? How else would you defend Apple that is bent on destruction?
Isn’t this site supposed to have at least semi-intelligent people?
I don't think likening Apple's stranglehold on users to the authority of a government helps your case.
I don't think likening Apple's authority over its own platforms to the government's stranglehold on citizens helps your case.
Am I doing this right?
I didn't liken Apple to a government, you did.
No.
Likening it to a government given every company has a domain over its own products and services, makes a lot more sense than likening it to a mafia which doesn't come to contribute, but only to take.
Apple allows you to ship infinite amount of apps at no cost, if you don't in return ask the store for money.
What kind of a mafia works like that?
Wait a second are you saying Apple is a government unto itself?
They have more money and effective power than most governments worldwide.
They govern the iOS platform.
There's some nuance to the 30% fee. Under $1M in revenue it's 15% and after a year it's 15%. No fee for free apps. No fee for physical things.
30% is way too high. 15% seems high as well without knowing the costs or benefits of the App Store.
I don't think stores have an obligation to carry your products, it isn't like supermarkets are breaking the law because they don't have an open-door policy on products. You don't have some intrinsic legal right to use someone else's infrastructure to sell your own stuff, on your terms. Framing this as a legal or ethical issue leaves me cold, when the reality is just... you'd PREFER higher margins. I get it! I'm not saying that's wrong, it just isn't a legally enshrined right.
I agree. However, consumers have the right to go to a different supermarket, without selling their house.
Consumers bought this house with their eyes wide open knowing that they can only access one supermarket.
I'd challenge you on that. I think 95%+ of iPhone buyers have no idea that Apple places restrictions on what they are allowed to install.
You’d lose that bet handily. People like Apple because of the curation and the ecosystem. A mainstream complaint about Apple is not that they place restrictions, but rather that they let too much low-quality stuff in.
Citation needed. (Citation also would be good for GP's claim, but they did specify "think" and were clearly speculating, whereas you make your assertion with certainty).
There are billions of iphones out there. Unless you're working with data (which you should share) then your anecdotal experience from talking with other tech literate people is so ridiculously non-representative that it's hard to even visualize.
My iPhone users don't know that they're being "taxed" 30% on every single app purchase.
One of the biggest economic theories that has been demonstrably proven wrong is that consumers act perfectly logically and with full information. The opposite is true. I really wish it weren't because economics becomes much simpler and more intuitive when you assume perfect information and logicality, but if wishes were fishes and all that.
And supermarkets have no obligation to build expressways to their competitors!
We can take these analogy absurdities wherever — the harsh reality is that nobody is stopping someone from building an open ecosystem phone. But there isn’t enough demand.
As a consumer, why should I care? As a company, unless I’m building my own walled garden for company phones, why should I care? What’s the market here?
The harsh reality is that manufacturing capacity and network effects actually prevents building an open ecosystem phone. You will never be able to purchase the best chips and displays.
I think we need to stop pretending that regulating competition is a bad thing. Competition is what makes capitalism work as an economic system. Without competition capitalism is inefficient and harmful. If we can inject more competition into the system as a whole, wherever possible, it's going to be good for consumers.
I don't think there's too little demand, I think there's too much profit incentive in the other direction.
Only a tiny number of companies on earth have the resources to build a successful mobile platform. If you are lucky enough to be one of those companies, you're not going to leave money on the table.
Speaking as someone who's gotten more than one tech illiterate relative an iPhone and iPad, the walled garden is WHY I bought in. It's literally Apple's biggest selling point, not having to worry about fake apps and malware and scams.
10 years ago that might have been true, but nowadays Apple doesn't give a single flying shit about fake/scammy apps on the iOS app store.
It's to the point where you can't look up local government apps here without getting some advertising garbage in the results first because Apple started selling app space.
Apple doesn't have multiple competing stores. It has ONE store.
And if you are a software vendor that makes mobile apps, you HAVE to support Apple or you will go out of business.
Because consumers value the Apple ecosystem and UX, both of which you can take advantage of as a developer. What is the problem?
The problem is that after a decade, my choices are to continue to spend money at Apple, or spend even more money and time to leave Apple, go somewhere else, and buy all the apps I already own, all over again.
When I first started, I used to think of Apple as the best option available to me. Now I think about it as the least bad option. The cost of leaving involves so much time and money, that it’s not a realistic option.
That's... life.
DVDs come out. Now I have to rebuy all my VHS movies on another platform...
No you don't, you can buy a VHS player and keep using it without throwing out your TV. Or buy a combined DVD/VHS player. The only reason to buy DVDs is because the quality is better. You're getting additional value for your purchase, beyond the artificial restrictions of a mega corporation.
This is a poor analogy, because there is no coparable access to build other app stores, as this is not the same kind of ecosystem for a market.
The mafia shakes down people who don't interact with them, apple does not.
How do I develop a mobile app which a majority of people in the US will be able to use without interacting with Apple?
Even using Apple, you can't do this, because you need a separate Android and iOS app already.
Big picture though, I don't think you really have a "right" or entitlement to just access everyone.
You're not entitled to use someone else's business, even if it's a good one. You can't just go and sell your product in the AT&T store, you need to agree to their terms. Even if you make a phone that only works on the AT&T network, you still need to agree to their terms.
You can't sell in Target or Walmart or Costco or even Amazon just because you want to. Oh and you may be quite disappointed to discover many of them take >30% cut too.
Apple thinks of the iOS App Store as another storefront, and you need their permission to put your product on their "shelves". The courts agree.
Prior to the 1980s, AT&T, as the dominant telephone service provider in the United States, had a policy that only allowed customers to use telephones that were leased from them. This policy was rooted in the belief that non-AT&T equipment could harm the telephone network. Does that sounds familiar?
Several legal cases (and the eventual breakup of AT&T) eventually opened up the AT&T network to third party phones and consumers rejoiced.
Phones aren't infrastructure, the telecom network is.
And yet you can literally pick up a phone, dial some numbers, and reach everyone else who has a phone number.
And yet you can literally pick up a [product engineered to a phone company’s specifications], dial some numbers [assigned by a phone company] and reach everyone else who [also agreed to the phone company’s TOS] [as long as you and them have paid a large monthly fee].
This isn’t freedom. Companies still decide how you can use their services.
Part of Epic's argument was that they wanted Apple and Google to distribute Epic Games Store, which makes your argument valid. However, the commenter you were replying to likely isn't aware of this and does not care about how they install EGS, only that they are able to do so if they do not want to deal with Apple or Google.
The sneaky part of Apple's counterargument is that they try to apply your argument not to their own App Store, but to the entire OS. This is a land grab - the App Store is their service, but I own the phone, so the OS should respect my decision to circumvent Apple's curation if I so choose. If I'm not allowed to sell in Target or Walmart, I'm allowed to open my own store and people can circumvent Target to go to me directly. This is how it works for every other form of computer except phones and tablets.
But only because macs existed before they were able to get away with this. I would bet a huge amount of money that if macs were invented/created after the iphone, they'd be locked down exactly the same way. And many of the same people who love it on the phone would love it on the computer, even though now they would say that it's a general purpose computing device not an appliance like the phone is.
Figure it out lol. That’s what Apple had to do. Why are you expecting a free pass to do what took them decades?
Because decades ago, "figuring it out" entailed visiting a website and downloading a software installer. Why is Apple expecting everyone to forget about that and pay them the difference instead?
You create a web app or website.
Nah, they shake down everyone they can.
They can't shake down someone out of their reach.
They can identify them though ( green icon... )
I think they actually have a monopsony since you can only sell to apple. If there were other app stores, you could sell to them instead.
"In economics, a monopsony is a market structure in which a single buyer substantially controls the market as the major purchaser of goods and services offered by many would-be sellers. The microeconomic theory of monopsony assumes a single entity to have market power over all sellers as the only purchaser of a good or service. This is a similar power to that of a monopolist, which can influence the price for its buyers in a monopoly, where multiple buyers have only one seller of a good or service available to purchase from."
https://en.wikipedia.org/wiki/Monopsony
(And they probably have a monopoly wrt iphone customers)
Walled garden is fine. Charging exorbitant fees because you've strong armed any and all competition out of the game isn't.
A reasonable fee with 0 competition would be fine. No fee, while hiking the prices of the devices would be fine.
How can you seriously say "any and all competition" when Android and Google exist?
You're looking at it from the user's perspective, this case is about B2B.
Imagine you're working on a hardware product that can communicate with your other devices over Bluetooth. How exactly do you avoid Apple in this scenario?
You can't, or you won't be in business for very long. You need to develop an app because Apple intentionally gimps their browser, and to release the app you must agree to their terms.
They're in a dominant position that allows them to dictate unfavorable terms to the rest of the industry which, among other things, stifles innovation.
I can't think of nothing that is paired over Bluetooth that couldn't be done better with some other medium. Even Apple use a superset of Bluetooth to get its devices working properly together.
Exactly. If you take US antitrust law as written, once you're close to being the dominant player, you can't have a walled garden.
So the law says that once your city reaches a certain size you must let in the barbarian hordes? In this case the barbarians are the malicious apps that would have been stopped by app store vetting. Seems like a bad deal for the average citizen of that city.
I think tech savvy users should be able to (after jumping through a few hoops) do whatever they want with their phones, without any fear of reprisal from software and hardware manufacturers. If Apple and Google insist on strangling this market then Tim Sweeney has the money to develop a competing phone ecosystem, it could be a great business opportunity if a large number of users and developers are actually not being well served. But he may find that this underserved population is a quite small slice of the total addressable market, and that walled gardens actually do a good job for the vast majority of users, protecting my oblivious grandma who clicks on everything from a horde of scammers.
Yes. Why are we so ok on giving up our rights like this? "no company is allowed to inside trade/use slaves/have a monopoly" - yes!
Framing things as you have leads to the impression that, by analogy to oppressing a person, restricting a large company is bad. But a company is not a person. Companies are legal constructs that exist because they are useful to society. A monopoly distorts markets and stifles innovation by disadvantaging potential competitors. This is not beneficial to society and so should not be permitted. So yes, a sufficiently large company should not be permitted to do things that might be permissible for a smaller company.
I think a lot of this stems from "take backsies" on a long term subconscious level.
The HN audience in particular is not just tinker-friendly, but the vast majority surely lived through the era of Apple where Jobs pitched the iPhone as more of a gateway to the internet in your pocket, web apps were even mentioned as being a major feature/philosophy.
Not to mention the "old world" of premobile OSes which still have the basic understanding that I can install programs programmed for this platform, without "protection" and the "protection fees" associated with a centralized monopoly, an old world of which macOS could never shed in the name of profits, but iOS and beyond has become the battleground for redefining the computing experience to the mainstream: is it supposed to be a bladerunner 2049 esque experience of hitting the predetermined icons on my pocket vending machine, infantilizing and commodifying people's lifestyle for wealth concentration of a company that uses it's wealth to...hmm.
It is, at the very least though, a bit of a betrayal to those used to the old ways.
At the worst, it's part of a larger regression against individualism.
Having a walled garden is fine. I use iPhone and apple products from day 1. That said, charging 30% of subscription in the App Store seems ridiculously high if you put yourself in the 3rd party vendor place.
For comparison, Amazon charges 15%. AWS marketplace charges <10%.
I think a company going around saying "we are a open system you can do what you want with our product" and then making secret deals to limit that openess is worse than a company from day one saying we are selling a 100% locked down solution, take it or leave it.
It really doesn't matter who is worse morally here, just both situations are bad for consumer choice. I find it amazing that Apple things it is okay to attempt to take 15% of Audible revenue if they allowed you to buy books in the app, for example.
It's 30%. It's only 15% after 12 months of a customer rebilling which is statistically insignificant number, and it was only done as a carefully orchestrated PR move to make people think 15% when it's really 30 - as you have demonstrated
Is it statistically insignificant? My guess would be that sooner or later most subscribers are long term customers.
Depends on what type of subscription business it is. I've heard meal kit companies like Hello Fresh lose 90% of their customers in less than 12 months, as the generous new customer discount vouchers tail off.
(Not that meal kit companies would be paying Apple 30%)
Meal kit companies don’t pay the 30% because the payment is for a service that is delivered outside the app. Uber doesn't pay it either. It’s a stupid loophole apple built in that all but proves the 30% cut is ridiculous and would never work in the real world.
Curious what B2C business sectors take less than a 30% cut?
Exactly. The whole argument about security and people needing a central payment system for things to be safe user friendly is patently ridiculous given that said approach is working just fine for all the “physical items” apps.
It’s statistically insignificant because churn rates on subscription services are higher than you’d think.
A typical customer lifetime might be somewhere between a year and two years, unless you happen to be a giant like Netflix.
Let’s say you expect your customer to churn after 14 months, so that means you only enjoy 2 months of Apple’s reduced royalty rate. Your total average rate is 27%.
This concept is why many sunscription services are able to offer lifetime subscriptions. They have already figured out what one customer is worth based on churn rate, so the lifetime subscription is set up to be a price that matches or exceeds that number.
If it wasn't significant in terms of Apple's profits why would they not just charge 15%...
As a dev, I absolutely prefer Apple’s model of locked-down walled garden. HN has no idea about all the grandmas and people who are busy with their jobs and kids, aka majority of the population. I can’t imagine the magnitude of digital fraud and scams that would happen if Apple devices weren’t a walled garden. My only dissatisfaction is that I can’t develop for iOS without buying a Mac and a developer account, but I also understand I’m not entitled to it just because I want.
How does allowing 3rd party app stores negatively affect the elderly? Just like Android the ability to install 3rd party apps and stores would likely be off by default and you'd need to enable it in the settings. And even after enabling it installing something gives you a pretty clear warning that what you're doing could be dangerous.
If that's not enough warning for someone then they probably shouldn't have a smart phone, or if they do it should have strict parental controls on it (blocking 3rd party installs, most sites, and phone calls/texts).
https://www.straitstimes.com/singapore/the-screen-started-mo...
There have been many such cases.
I can, and I don't mind. Let it happen. Computer freedom is more important than preventing scams and fraud. Just have the corporations and banks eat the losses instead. God knows these trillion dollar corporations can afford it.
Those who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety.
- Ben Franklin
Apple could still be a gate-keeper of 3rd party stores. They could dictate the security and protections that need to be in-place to be listed.
The PKI industry is a good example of this.
The Certificate authorities have to abide by standards and any misbehaving Certificate Authorities can be removed.
I'd argue the integrity of the PKI industry is just as important, if not more so, than App Stores and they have managed to maintain a device agnostic market with healthy competition.
Both are bad for consumers, but one is worse.
A locked garden is a locked garden. But a locked garden that you go into knowing it's a locked garden is better than a locked garden that advertises itself as open and then locks you in. Both are locked gardens; one is also false advertising.
Gotta agree with you. I originally chose Android because it was relatively open but Google wiped out our freedom with hardware remote attestation. Now my bank app refuses to work if I modify my device in any way.
If I must be in a walled garden, I'm choosing the better kept one. Android is quite simply inferior, I tolerated it because it gave me relative freedom but there's no reason to tolerate it any longer.
Yea. I'm on Samsung s22 ultra myself. I'm thinking to move to Iphone and Apple Watch because at least with apple I know I'm being locked down up front.
Out of curiosity, say that I'm not a techie that knows all about Apple vs alternatives ... and say I'm interested in buying Apple because I like the aesthetics of the device or something. Is there anything actually explicit in Apple's marketing that makes it clear to the consumer that they are buying into a "locked garden" ?
Part of this discussion has to do with definitions and what we're talking about, specifically. It's common in other industries to find yourself with some degree of vendor lock-in for "compatibility." I bought some high end Canon camera lenses, for example, so I have zero expectations that I can use those lenses with a Sony or a Nikon. I tend to buy Dewalt tools because I own Dewalt batteries etc.
Here we're talking about the "App Store." I don't know that it would register on the average non-techie's mind to assume they would have options ... but us techies know that the "locked garden" tends to mean "you're buying into the Apple ecosystem of products and will likely be stuck only buying Apple products for compatibility sake." Non techies might assume that because they assume that everything works that way. But is Apple making this extremely clear in their marketing so that people who don't assume would know up front? I'm genuinely curious since I don't buy Apple products.
Agreed, and also worth pointing out that Apple has rules for apps in the app store that they aren't allowed to tell you about Apple's cut and point you to a different place to buy. That is the absolute opposite of informing the user. Apple is preventing anybody from informing the user.
I don't think it's false advertising to say that Android has alternative app stores. I primarily use apps from an alternative store and it works well.
I agree but not enough to get the government involved
What's your solution?
Who else can regulate markets?
They aren't "taking revenue" they are providing a service. If audible don't want to use that service they don't have to.
Except they want their cut whether or not you use their service.
Apple offers the same kinds of deals (see Netflix discussions) though there the rationales are different, which leads to sweatier "Apple has to offer deals because their value add is so bad, and having alternative app stores would help"-style arguments... I don't really know of a good legal argument there.
Is Apple's deal with Netflix anticompetitive though?
Google is paying hardware manufacturers to use their search and for exclusivity with their store. Both of those are more or less explicitly to keep out competition.
Apple cut a deal with Netflix but what competition does it squash?
These are just different issues.
Towards other streaming services?
Yes.
Giving preferential treatment to one customer at the expense of other customers is not anticompetitive behavior as defined by any law I'm aware of.
The law doesn't say you have to give everybody the same deal just because it's "unfair" to others.
The monopoly/antitrust/etc. laws are about misusing a position of power for your own benefit at the expense of competitors. Apple doesn't have to be "fair" to Netflix vs Max vs Disney Plus.
Plus, Netflix isn’t even Apple’s customer. It’s actually kinda the other way around: Apple’s customers are what Netflix wants access to, as a source of potential Netflix customers.
When you’re a marketplace, especially a big one, both the people buying in your store and the people selling in your store start to look like customers, both paying you for access to the other. For the sellers is obviously more implicit, but still often explicit like grocery stores getting paid to put specific products on aisle end caps and such.
The whole 30% fee is premised on providing services to app makers for money.
But Apple stated all got the same deal and had to pay the same.
But they lied.
It’s very likely they have special deals too.
Without saying too much, I have personally witnessed such a deal at company with a measly 2-3 million app downloads. We had a physical product in the Apple Store that was doing very well. Our sales guy somehow negotiated lower IAP fees in exchange for higher cut or exclusivity of our retail product. Everything is negotiable if you have leverage.
Considering Apple has its own streaming service, this may in fact be the opposite of monopolistic.
It squashes competition with Netflix
But Apple didn’t decide that only Netflix could be on their platform. And they didn’t take money to cause problems for other streaming video services.
That’s what Google did according to the verdict. They paid money to stop competitors.
In fact Apple negotiated that deal to keep Netflix on the platform because Netflix wasn’t happy paying 30% (surprise). It’s not good that they’re playing favorites secretly, but it’s not the same thing
Did other streaming services get the same deal?
That doesn't matter. Businesses aren't required to make the same deals with everyone.
But if one service gets a better deal than it's competitors then it's market impediment.
And Apple had previously explicitly stated in its defense that everyone got the same deal.
I agree the issues are different! I do believe there’s a subtle argument to be made about how Apple can use its customer base to “pick winners” (combo of huge user base + App Store being the only entry point), on top of things like offering sweetheart deals to certain apps. Meta being allowed to get away with so much “against the App Store rules” stuff is legit IMO.
Anticompetitive behavior can be downstream of stuff like this, even if Apple isn’t actively quashing something but merely making it way easier for certain places to absorb the costs (especially if the deal was only offered to Netflix but not to other platforms).
Its not a ironclad argument by any means but its something
From 2018:
https://www.theverge.com/2018/12/28/18159373/netflix-in-app-...
Apple allows companies that have a free app used to access subscription content to sell the subscriptions on their own website without giving Apple a cut.
Netflix used to allow you to pay though Apple to reduce the sales friction of needing to set up billing through the Netflix website, but they stopped letting users pay through Apple years ago.
Maybe they stopped new subscriptions, but I'm still paying for Netflix through Apple.
The rule of thumb, in a very simplified way, is indeed that you can have a monopoly as long as you don’t actively leverage that power to stifle competition.
That’s not a result of this case but a result of all the jurisprudence leading up to this case.
And to a certain degree, that makes sense. The alternative, making all monopolies illegal, would cause too much havoc because it would affect almost everyone putting out a product.
Say, for example, you’re a newcomer in the market of smart thermostats. By definition, you have a monopoly on your thermostats. If monopolies are by definition illegal, regardless of circumstance, you’d have to allow Nest to put software on your thermostat advertising their products.
That’s an undesirable outcome, if only because it makes it harder for you to compete in that market.
I don't think this relates to Apple case.
Apple doesn't allow other stores to exist on their ecosystem. That's a problematic monopoly, because competitors can not exists.
That's different from what you are saying: other companies are allowed to create smart thermostat and compete against Nest
By the same logic, other phonemakers can come over and make phones. The definition of what is a "market" is arbitrary and subjective. Google may be a monopoly in internet search, but only a small player in "global advertisement". And anyone anywhere is a monopolist in the very narrow definition of the market that includes their own ten customers.
What's really important is the power play: your company should strive to hold a comfortable and stable monopoly position in a meaningful market (meaningful to you), while the government's role is to watch over all the businesses so that large numbers of people are not under heavy influence of external forces and not made unhappy. If any product exploits its monopoly by shifting the power from the government or making people sad, then gov steps in and interprets the rules in the way to correct this. Or, the gov is corrupt and helps keep that monopoly going :-)
How about a _market_ is anything where there exists a _marketplace_? Doesn't seem like a wild stretch. Now why should Apple have a monopoly on accepting payments on its platform?
To your second point: people are sad that we can’t have cheaper and better software on iOS. It’s a poor UX when an app makes me go on my desktop to sign up for their paid service. It negatively impacts consumers and only exists because Apple is wielding its monopoly.
So every store is a monopoly? You are going to have to be a bit more rigorous than adding “-place” and call it a day.
No, I’m saying that almost everyone has a monopoly over something just by creating a new market.
This is why monopolies aren’t illegal per se, and it requires a couple of components for it to venture into unlawful territory.
One is that the monopoly is powerful enough that it can be exerted to pressure other parties in an anti-competitive way, and another is that that power is actively used. There are more, but for the sake of simplicity, these are the important ones in this debate.
Disallowing competitors to exist, in this case, means passively making it possible for competitors to exist.
The omission of an act (passive) will never be as substantial as an indicator as an active act to quash competition.
The App Store hasn’t changed much since its inception. Commission rates have decreased since its inception, making it harder to argue that Apple is squeezing developers now that it has more power.
The analogy with the thermostat hypothetical is accurate. If I create a new smart thermostat startup, I create a new market, the software distribution on the thermostats I manufacture.
This is analogous to the market definition people use to argue that Apple is violating antitrust laws. If it makes it easier to grasp what I'm saying, then instead, imagine I start manufacturing a new smartphone.
They launched the iPhone and, by doing so, created a new market, the iOS app distribution market.
The only difference is that the iOS app distribution market has grown exponentially, but the relevant legal realities are the same. The law currently doesn’t have a mechanism to say, “Ok, now you’ve grown, so now it’s illegal.”
Instead, it looks at abuse of power, where acts weigh heavier than the omission of acts.
The main difference between the Google and Apple’s case is that the former went out of its way to stifle competition by making demands and setting requirements (akin to Microsoft back in the day).
Some now say that the only reason this difference exists is because Apple doesn’t have to pressure others like Google did, but that’s not a difference to be shrugged away. It’s an essential difference.
It makes the difference between one giant who throws its weight around and another who never had to do that because the terms have been the same from the get-go (however favorable it was for them).
It is for that very reason that the Google case won’t have much bearing on the Apple case.
Why would a monopoly being illegal force you as a newcomer to brand your product as Nest? Makes Ero sense
you're saying, in a very simplified way, you can have a monopoly if you already have a monopoly..
I don’t think that’s even close to the spirit of the law. Monopolies are bad because they artificially limit consumer choice and market dynamics resulting in a product that’s more expensive and generally lower quality. If you intentionally limit competition where there would otherwise be a healthy ecosystem, you’re a problem, even if you have a cult of believers.
Apple is horrible, but Google isn't blameless.
Google and Apple are a duopoly that controls one of the most essential devices of our time. Their racket extends more broadly than Standard Oil. The smartphone is a critical piece of modern life, and these two companies control every aspect of them.
There are no other companies in the world with this level of control over such an important, cross-cutting, cross-functional essential item.If we compared the situation to auto manufacturers, there would be only two providers, you could only fuel at their gas stations, they'd charge businesses every time you visit, they'd display ads constantly, and you'd be unable to repair them without going to the provider.
There need to be more than two providers. And if we can't get more than two providers, then most of these unfair advantages need to be rolled back by regulators.
This is horrific.
You might be able to blame Apple for starting this and continuing it on their phones, but I don't think Google is pushing Android handset makers to do this at all, just like I don't think Google is pushing Samsung (and maybe some others) to eliminate 3.5mm headphone jacks on their phones. Unfortunately, I think this is one of those things where the whole industry is just copying each other. Non-removable batteries are better for manufacturers for various reasons, but bad for consumers, and they've conned consumers into accepting it.
Same here. Nothing is keeping Android phone makers from being repair-friendly.
This is Apple-only. The Android counterpoint is "Updates simply cease after 2-3 years, leaving you with security vulnerabilities that won't be fixed", but here again it's the fault of the handset makers, not Google: they're just too lazy, and Google is too stupid and short-sighted to force them to support their phones longer-term to improve the Android brand image.
Hey, re-read the dude post you are replying, there are parentheses to signal which specific actor or none for both. Perhaps they weren't there when you answered.
For what it is worth, Youtube's tax is around 70%, but people get to see non-monetized videos for free. Similarly, the Google Play Store lets people download software at no cost when no price has been attached to it by the developer, despite having to do the work of distributing it.
Also, the OS developer acting as a gatekeeper is necessary to prevent malware from getting onto devices. Without that, you have Windows where black hats trick the average user into installing malware constantly.
Almost everything you list is actually a positive thing, although I would be wasting my time to explain it to people who should take the time they put into complaining into developing their own competing platforms that align with their ideals. Please do put your energy into making a competing platform. We need more choices at the operating system level, and nothing people hope these lawsuits would accomplish would give us that.
This discussion is as old as PC vs console gaming. Point being this horrible walled garden also provides ease of use, makes some features even possible in the first place, and I don't need to worry that my mother is installing keylogger or malware.
The way you put it—"FOMO in children," really does it justice. The way Apple uses their messaging service is almost psychological manipulation of children to increase their market share.
It's so sad that a company that resorts to those kinds of tactics to increase their market share, as opposed to, just selling more of their product because it's a superior product.
I think the difference here is that Apple locks things down on Apple hardware running Apple software.
On the other hand, Google is trying to manipulate the market to gain an advantage over competitors on non Google hardware running Google software.
On the Apple side of things, the full vertical is Apple. That is not the case for Google.
Ok so Google is punished for being more open in the first case? Sounds fishy to me ...
Especially since Google had always had the AOSP as a reasonable way of demonstrating their commitment to the industry as a whole disjoint from the places where they thought the Google ecosystem provided extra value (which they admittedly require you to take wholesale)
AOSP has effectively been dead for a long time. You need Google Play services for almost everything now and more and more creeps into the proprietary portion.
No you don't. Writing an app to use google services is a choice. There's MicroG for silly apps that require google services, and there's also life without using silly apps that require google services.
Please note how you dismiss apps requiring Google Play services as "silly," when most people who use those services use them as part of the hardware root of trust programs for work apps, or other device attestation for banking apps. Putting demeaning adjectives in front of the things you're arguing against isn't a compelling argument, I think you'll find, and "life without" banking and work apps leads to a lower quality of life for a lot of people.
One could hope people would despise such a company and the market would fix it, but humans have proved the opposite. I've stopped trying to educate people and lost all faith in humanity. Most of them just don't care, as long as they've got their shiny stuff.
This is precisely my experience as well. I think what's happening is that everybody wants authoritarian control, and in fact prefers it, right up until the authority makes a decision that runs counter to their needs. But by then it's too late.
It reminds me of the Newburgh Letter, suggesting that George Washington be declared king after winning the revolutionary war. It's like they missed the whole point of the exercise.
Apple has published research on using AI to clone apps. It can't get worse source: https://blog.ml.cmu.edu/2021/12/10/understanding-user-interf...
I read the paper. That's very cool research! I've never thought of representing UI as a graph before. Their code generation clearly leaves much to be desired (see the figure at page bottom).
IANAL, but it's my understanding that courts like to stick to what they know. Apple's arguments about iOS security are rooted in abstruse technical concepts that a judge probably prefers to avoid ruling on directly, while Google's backroom wheeling and dealing is the kind of conventional skulduggery that is immediately recognized as an offense.
I don’t think it’s because Apple conned them over.
Google said you could start your own App Store and then secretly undermined people who tried to start their own App Store.
That’s what they got in trouble for. There is no evidence of Apple making backroom deals to prevent people from doing things Apple said they could.
What’s to stop Google from locking theirs down, too, at this point?
Or would that be illegal since it was originally open?
It's not that Android is open or locked down. Google can do whatever they want with own handsets, like Apple does, but Google is using their influence to affect the software market on other handsets.
Alternatively if you can’t have a closed ecosystem, there’s no incentive in creating the next generation of consoles and console gaming is dead.
How is Apple a monopoly? They have a huge competitor in the mobile phone market: Google/Android. I could see arguing that Apple and Google are a duopoly.
Apple will start allow sideloading, at least in the EU, because they are kind of forced to now by EU regulation.
I guess part of the result is "you can't lock your ecosystem while pretending it's open". As for Apple's situation, it's different enough to warrant a separate lawsuit.
Will that not change with the new EU rules?
No. It’s you can have a monopoly if you treat everyone equally and don’t make secret deals with anyone.
This is a generally accepted and non controversial practice in certain areas.
Of course not saying that this should be the case for app stores or that Apple is actually treating everyone equally..
Or it”s a great feature depending on your one’s opinion.
It was shown that Apple does have secret deals though. Part of it was that Apple could actually be hurt if some of the bigger players left - Amazon, Netflix, etc. Netflix had a really sharp deal if I'm not mistaken, like 10% compared to the 30% everyone else paid.
I agree, but consumers have spoken with their wallets and overwhelmingly prefer a big corporation to have full control.
Can you really say that was why they lost? A jury found Epic’s case compelling against Google while a judge did not with Apple.
Is it a specific reason or a difference of opinion?
They are completely different cases because Apple controls the manufacturing process of every iOS devices in every phase. But Google does not control the whole product lifetime of the every Android phone out there.
On the latter monopoly abuse is bigger problem.
But if you make, build, control and design everything from bottom to top on the product, then it is less about monopoly abuse. It is just single total product.
I and I think many others disagree. Apple's case seems more egregious. Who are they to tell me what I can and can't do with my phone? Walled gardens may be a value add for some but it also spits in the face of first sale doctrine.
I don't like the idea of not owning my own phone either, but you are not exactly forbidden to do whatever you like with your phone. It is more about what are you capable of.
This cap of capability has been increasing drastically with technology. Even if you had an old, repairable car, not everyone has capabilities to repair it or modify it to something else in the past. But now even less likely.
The question is that how much they hinder on purpose? In the case of Apple, many times it might have been hindering on purpose, but some choices have also valid points.
If you remember the old times of Android (and still), Android provides extra-ordinary attack surface for malware what iOS has never had.
The distinction between Google and Apple is that you might think that with Android, as there are many manufacturers and brands, you have a choice, but it is just an illusion, if Google "abuses" it's market place with other manufactures.
In the case of Apple, it's just Apple. Apple can do whatever they please but is unlikely affecting any other manufacturers or brands. If they want to compete with Apple, they need to be better than Apple.
Of course, there is the value of user base. All the companies must try to adapt with the social behavior of people, and if they choose to use iPhone for playing games and listening music, companies must bring games and music on those platforms to be competitive. It is hard to get this userbase.
The biggest issue of this particular case with Google were the deals. And other manufactures and companies since Google is not manufacturing the phones itself, but instead makes secret deals about the Play Store and other software. This goes to line of monopoly abuse, since it affects other companies and the illusion of choice, and also hinders innovation.
Well can do whatever you want with your phone. Apple however has no obligation to make it easy for you to run third party software or support this at all. After all that would be an additional feature which they never claimed their devices have.
it sounds like the EU is going to slowly push on Apple t do the very thing Epic wants regardless. https://appleinsider.com/articles/23/11/08/apple-admits-thir...
So I guess Epic had the right idea but the wrong angle (or simply the wrong judges in the US. Probably a bit of both).
Epic's angle was to get discovery so they could embarrass the shit out of regulatory agencies and legislators by pointing out how they were sleeping on an obvious, decades old antitrust case. It worked. The DMA wouldn't have been a thing without Epic suing.
It should be noted that this was a jury decision. Juries are instructed on the relevant law, but ultimately they can give back whatever answer they want, for whatever reason they want. So while we can speculate why the answer came back as it did... and that speculation may be correct if the jury was following instructions, we won't know for sure unless someone on the jury chooses to come forward and explain their decision.
Have you ever heard of a judge telling a jury that they are free to think for themselves and give the answer they want? If I recall, there is a term for that, called jury nullification and judges reportedly become upset if attorneys tell their juries about it.
If you hear of a judge that encourages juries to think for themselves and answer as they think, rather than prescribing how to think to them, let me know.
Epic v. Apple did find some limitations to Apple's policies, but also found that Epic specifically didn't prove the abuse of monopoly power they wanted to.
https://www.theverge.com/2021/9/12/22667694/epic-v-apple-tri...