Another point that Patreon isn't really emphasizing here that seems relevant to any conversations about "fairness" is that Apple's fees on Patreon subscriptions in-app are now higher than Patreon's fees.
It's important to recognize any time that we're talking about the market that services charge what they can, not what is fair. The market does not have a concept of fairness, only competition. This is why there is no such thing as a benevolent monopoly that charges fair prices - because fairness does not exist in the market, only competition.
BUT... since fairness gets so often brought into conversations about Apple's fees, often with the implicit suggestion that Apple "deserves" to be compensated for all of the work they're putting into hosting and curating apps and for (in heavy quotes) "creating" a market that they supposedly also don't have duopoly control over: does anybody want to argue that Apple hosting the Patreon app on iOS provides more value to Patreon subscribers and creators than the existence of Patreon itself does?
Like, if we're going to talk about what's egregious and what's not egregious, charging higher fees per-transaction than the platforms you are hosting seems like it might be a good indicator that things have gotten out of control.
Well, there is a simple way to test this... just get rid of the Patreon iOS app and just use a web version. Why does patreon need its own app? Why can't it just be web based?
I wish fewer companies had apps. I don't need an app for everything. I don't need every hotel I stay at to have their own app, I don't need an app to order food at a restaurant.
So why do companies make them? Because people spend more money when they can just use the in app purchase functionality. It is CLEARLY worth the 30% to most companies, because they keep pumping out single use apps that would be better as a mobile web page.
Heh. I didn't even know there was a Patreon app. There is an issue though. A lot of people (not me) use phone as their main computing device. And Apple is well known for keeping web app experience subpar compared to native app experience. Safari is lagging behind all the other browsers regarding modern APIs support. Bugs are not getting patched for years. At the same time other web rendering engines are not allowed on the main official app store. The other app stores are hard to get to and I consider them non-existent for regular users.
So, platform developers have to take iOS support very seriously or miss a lot of profit.
Heh, Safari may lack some APIs, but it’s irrelevant for 95% of apps including Patreon.
It’s not like Patreon would be unusable on iOS without an app.
The problem is cultural: a growing population do not know what the Web is.
When they are asked to search for a website, they open the app store and search there. If there is no result, they give up.
Then make an app whose sole purpose is to open a website in the browser
That is disallowed by section 4.2 of the App Review Guidelines[0]:
[0]: https://developer.apple.com/app-store/review/guidelines/
The irony of so many apps being electron wrappers is apparently lost on Apple. I'll just be happy if Teams could stop eating battery for once.
Though honestly jokes aside, this rule still doesn't make a lot of sense (to me). Webapps are capable enough. What does Uber's app, or the Google app do, that's different from their websites? Heck, even Apple's own notes app is simple enough that I'm fairly sure you could make a webapp out of it. I think tasks.org already has such a webapp/website.
Few iOS apps are based on electron, I would think.
Discord joins the conversation.
Then make an app whose sole purpose is to display bookmarks as icons on a scrollable and searchable canvas.
It wouldnt matter that your app is just a web view of your website, as accepting payments that bypass the ios payment system gets your app banned.
... Thus the conversation in the first place.
But browsers, which are apps, can accept payments that bypass the ios payment system, no?
Won't be surprised if Apple blocks this too or redirects URLs to open the app in the app store.
"The problem is cultural: a growing population do not know what the Web is."
I'd love to know where this idea started, because I'm not convinced it's actually based on any kind of real data. If it is, I don't think it's accurate for the past 5+ years.
Knowledge of the web is probably flat. And apps and smartphones have peaked in the West. Those are my anecdotes to add, since that seems to be what we're doing.
This line of thinking could lead to a self-fulfilling prophecy the more it's spread, too.
The idea that Safari is lagging behind is nonsense too. People live in their own fantasies. Press someone to explain what bugs or missing features they're specifically saying are holding the web back and you will probably get a very short list of nonstandard or experimental APIs like WebUSB.
Here's a site that lists a few [0].
I will say that if you've spent any time trying to develop a web-based app it becomes painfully obvious that Apple is doing the absolute bare minimum to support the browser on iOS. PWAs are barely functional.
[0] https://ios404.com
My daughter’s boyfriend just bought a MacBook for college- his first Mac. He was immediately flummoxed going to the app store looking for apps that on a Mac are just websites.
He was somewhat appeased when I helped him find the Spotify Mac app though. Just going to their website just presented the music interface, with no links to the app download (which isn’t available in the Mac app store I would guess, since the BF hadn’t found it.)
Developers not allowing iPad apps to run on M-Series Mac’s are really hurting themselves with the younger set.
Do people search for applications in the App Store or on the Web?
This 2023 study[0] indicates 48% of people discover apps by browsing through the App Stores, compared to 21% that discover them through Web search engines.
Is this a trend?
This 2015 study[1] indicates 40% of people browse for apps in the App Stores, compared to 25% (“1 in 4”) that discover them through Web search engines.
Does this apply to Patreon?
The CEO of Patreon had this to say:[2]
[0]: https://www.semrush.com/blog/app-store-optimization/
[1]: https://www.thinkwithgoogle.com/marketing-strategies/app-and...
[2]: https://youtu.be/L-LoTH3PzgM?si=F1xraTOFxx8SJN0C&t=61
For good reason. The web is a cess pit which people will avoid if they can.
A term which in no way also applies to apps, that have vastly more ability to spy on you, and DMCA protections against interop and modification. /s
At least the spying is efficient, I guess.
The app store is also ridden with scams and crap. But the web is a horrible experience for normal people compared to apps, which the down voters here don't seem to understand, because they have adblockers etc.
Normal people need ad blockers about the same way they need clean water. I wish advertising was a viable revenue model for publishers, but it has been abused by large actors for so many years that large US government entities like the FBI recommend an ad blocker[1], and even the FTC lightly suggests it [2].
[1] https://www.ic3.gov/Media/Y2022/PSA221221
[2] https://consumer.ftc.gov/articles/how-websites-and-apps-coll...
It is baffling how some random people will come to Apple's defense from the most unimaginable angles. "Safari is lacking but should be enough for 95% of the apps". Why do we even have the App Store then? For the rest 5%?
No. We have AppStore for the hundreds of thousands of apps that cannot be implemented using web tech. And for hundreds of thousands of apps that people could implement using web tech, but don't want to for various reasons, both big (too many workarounds) to small (abysmal performance for the simplest tasks)
These are not disconnected, though. The web COULD be made to support more of these use cases, but Apple wouldn't be able to collect 30% of the profits. Safari was a laggard for many years while the App Store was being entrenched.
No, it couldn't
Apple has nothing to do with the fact that the web can barely render a page of static text and images without stutter. Almost every single app made with web technologies is a slow bloated abomination barely capable of doing a few primitive things right. And those that aren't have insane amounts of effort poured into them.
If you believe that Apple has something to do with it, why isn't there a flood of amazing smooth native-like apps on Android where none of the real or perceived limitations exist? Why is there a Google Play store with hundreds of thousands of apps?
oh you think your shitty swift app is any better?
There are a truck load of crappy SwiftUI apps that make your average bloated web app look like lean, FTL starships. They stutter so much with broken animations that you are afraid that your phone had a stroke.
I’m really not defending Apple here. I’ve always been pretty vocal against Apple practices, especially with the App Store policies.
But I do think that the situation we are in where any company have to develop an application when the web does it nice enough (and it’s especially true for products such as Patreon) is pretty ridiculous.
Of all the companies around, Patreon is one who could easily avoid this in app fee nonsense just by avoiding having an app in the first place (or at least having an app for subscribers, maybe the app is useful for content creators).
I’d totally prefer a situation where Apple wouldn’t act like dicks but by accepting this situation, Patreon is just legitimizing Apple behavior.
How can you be vocal against App Store and in favor of Web and Apple's effort on that front while Apple/Safari blocks multiple attempts of making the Web a good platform for web Apps.
That's the biggest complain of every web app developer but you are saying that Safari is already great for that while excusing Apple's behavior. Wow.
Please quote where I excused Apple’s behavior and where I said that safari didn’t lag behind other browsers. I just said that Patreon ran fine on Safari and so that Safari had enough features / API to do the job for Patreon. I didn’t say anything about safari being a good platform for web apps in general and I don’t understand where you read that in my comment.
So let me repeat my opinion : yes Safari lacks a lot of features and APIs to be a good application platform. Yes, Apple is a shitty company especially when it comes to app policies. But, in the current state of affairs, Safari is enough for simple applications/websites such as Patreon.
I still remember when they refused to support forms constraints (there was the JS API, but not the UI designed to show users what they got wrong with their form, so you had to polyfill that specifically for Safari).
Forms are pretty darn important to 99.9% of web apps, this felt like active sabotage.
Is Chrome on Android complete in terms of modern APIs? If so, do people use it instead of apps on Android?
In this context, Chrome is just a browser, just like Safari is on iOS. The "problem" is less-technically-savvy folks (especially -- and ironically -- tech native youth) don't understand/care about the distinction between Apps vs a Website Bookmark/Shortcut.
That Patreon is even considering keeping the app is proof of this.
Depending on how overt Patreon's app is about ringing the alarm bells (imagine a "JUST MAKE A SHORTCUT and save 30% on everything!!!" popup) would just get them banned too, no doubt. Presumably criticizing Apple is a bannable offense.
No, that Patreon is "even considering" keeping the app is evidence that they get more valuable information about users and their habits from the app than they could from a website.
I doubt it. What evidence supports your claim? I took a look at the Patreon app permissions in Android, and it doesn't even ask for location which is probably the most valuable thing about users they could ask for.
The broad argument holds, regardless of what Patreon itself does right now.
Facts are simple here: Apps grant easier access your habits and identity as compared to a relatively-sandboxed browser.
That's not disagreeing with me, but instead adding yet another argument for users to avoid as many Apps as they can.
If the experience in an app is form, graphs, and payments... use the website. It apparently saves that company 30% and, to your point, keeps your computing habits yours.
I use Firefox on Android (which I can't on iOS) and I use it instead of apps wherever I can. Why should I install an app for every single thing?
That’s fine as an anecdata of n=1. But it doesn’t seem that apps are unpopular on Android, where as the GP seemed to suggest that Safari was the reason for app popularity. That just doesn’t seem to be true, given on Android we don’t see a large inversion.
They can take their time, although they seem to implement the worst parts of it. Remote attestation and manifest v3. Who else could ever live without these features?
because apple gimps their web browser capabilities & performance to incentivize developers to enter the walled garden
I use the web version on my phone instead of most apps, and they work fine.
That's because it's just like IE was back in the day. No web dev is going to build a web app that doesn't work on it, no matter what a turd it is.
Then we should all be thankfull for Safari restraining web "devs".
That bullshit to be honest. Not the lack of features in Safari, that's very real, but you don't need most of it. There is nothing that Patreon needs to do that could not be done by a 15 year old browser, let alone the newest version of Safari on iOS.
I can understand that developers would like to use certain feature, or that they'd make the job easier, but they are not required. Patreon isn't cutting edge web development, you could make it work on an IE8 if you cared enough. There it absolutely no features currently lacking in Safari that would prevent Patreon in moving to website only.
Exactly, it doesn't need native access to every bit of hardware to fulfill the needs of a simple app. If needed, Mobile Safari can do push notifications.[0]
0. https://developer.apple.com/documentation/usernotifications/...
If that were true, we'd see great amazing native-like web apps on Android where none of this perceived gimping is happening.
While true in most cases (for anyone who disagrees look at PWAs being restricted in EU), Patreon’s app sucks butt and is honestly a worst experience in most ways than their mobile website anyway.
Source?
Apple's mobile Safari has enough capabilities to serve a mobile-like simple app for managing a subscription service.
How many of the apps you're complaining about are paying 30% to Apple? Hotels and restaurants definitely aren't.
Also a lot of companies make apps so they can get more tracking info. That value doesn't come from the Apple Store.
It's things like games that really get an advantage from being native and in the store. And that's largely a red queen's race, they need to stay on top and they'll pay out the nose to be the easiest install. Paying lots of money in a zero-sum situation doesn't mean they're getting much value in a more zoomed-out sense.
If the CEOs could sign a petition that had a sure chance of antitrust action against Apple's fees, every single one of them would be itching to sign.
Maybe s/he doesn't want to waste their time doing that and instead the company is politely signaling to their users that they're being charged junk fees by continuing to use the iOS app. Which is quite fair and transparent behaviour. Why take on Apple when you can correctly inform your users and push them to give Apple the boot?
In the EU that's what they are doing. In the US, Apple will lock your account for snitching about the Apple tax to your users. See the Epic lawsuit.
Mob boss behavior.
The ability to get more tracking info comes from producing an app which in turn comes from the Apple Store. I’ve never found myself wanting to use a Patreon app instead of their website, just like I found the substack app a complete waste of space and immediately deleted it.
Not everything needs to be an app.
I strongly disagree with that. The store is not the reason apps are good for lots of things. You can assign a lot of value to phone and OS, but Apple does not try to take a cut based on making the phone and OS because it would be hard to defend. The store pales in comparison.
It's also an issue of onboarding and discoverability. Creators would see a marked reduction in subscriptions if Patreon was not allowed placement in the app store.
Why? What makes the app itself so attractive? Do Apple users not know what Safari is, or how to type in a link?
And it should be noted most Patreon users find their way there via YouTube, which itself automatically opens links to Safari, where Patreon can be subscribed to easily.
No, they actually don't know how to type in a link. Most people still don't know how URLs work. People still type in Facebook to the Google search box.
It's about friction. you could give users a PO box address and ask users to get out an envelope and write a check, and say if users really wanted to pay they'd do that. But we all know you're gonna lose out on a ton of money if you make it that hard for people to give you money. So it's about how much friction there is, and for some, an app is preferable to some website where I have to wade through a bunch of crap. Depending on what it is, if it bounces me to Safari, I might just get distracted and "just do it later" aka never.
AppStore is horrendously bad for discoverabilty. It's overrun with scammy ads, fake reviews and fake apps.
I honestly don't think this is true. I think people tend to discover a creator they like first, and then click through to their Patreon. I don't think the reverse happens very often; I don't think many people install the Patreon app so that they can look through lists of people they could give money to. And if they do, they're clearly aware enough of Patreon to be able to use the website instead.
Assuming the average user accesses Pateron by clicking a link, there's really no reason for a dedicated Patreon app to exist. Apple Pay works just fine on websites, without demanding the App Store fee.
When a mobile web page uses apple pay, does it also give 30% to apple?
If not, what’s the difference between it and an app?
Apple Pay and in-app purchase are different.
Apple Pay is a percentage paid by the bank, not the merchant.
In-app purchase is for an app being used to buy digital goods and services consumed in-app. The agreement for publishing apps says that you will give Apple a cut, and upfront purchase price and in-app purchases are how they collect it.
You can’t use in-app purchases to say order dinner to be delivered.
I think you're missing the point. You're focusing on the technical differences, but it's not outlandish to imagine Apple demanding a cut of all transactions on iOS over time.
It would start slowly, with a minor value-add (e.g., making it easier to put/use CC info in the secure enclave, or whatever incremental step they choose), and an announcement that in exchange for "easing payments and making them more secure", Apple will be charging X% of transactions with their system.
Apple Pay is a wallet that can be used in various places. For a store to accept Apple Pay, the merchant is given a virtual credit card to charge for payment. This costs the merchant the normal credit card processing fee, usually 2.9% + 30 cents.
On iOS, In-app-purchases (IAP) are used inside an app to purchase content. Because it's on Apple's device using Apple's SDK and APIs and hardware, Apple takes a 30% cut of the fee, so you charge $10, Apple takes $3 and gives you $7. Inside of the app, it uses Apple Pay, but because it's in the app, Apple takes 30%.
No, it does not. You can buy anything from anywhere on the web.
Actually Patreon has played it perfectly by offering an android app, ios app and a website, and increasing the prices on the ios app to cater for the fees. The next thing should be to provide a clear notice on the ios app that lower prices can be found on the other apps. Then they will be able to objectively tell how many people value the app store's value additions enough to pay extra
You can't put a notice saying your prices are increasing due to Apple, it's against the App Store TOS :)
Is it allowed to put a notice that Android and web users are given a 30% discount on the normal prices, which accidentally are only for iOS users.
Or just add a clickbait title: "See here to find out if you are eligible to discounted prices!" to a link to the web site.
Of course buyer has to be able to disable the 30% discount on the web site, to make it plausible that the normal prices are the ones on iOS. And all billing lines in the invoice always have to include a 30% discount line on Android and web purchases.
No. You are not allowed to provide customers any details about other payment options. Apple has provisions that basically say, "you must not encourage the user to use a different payment option." And Apple can interpret that quite broadly; telling users that another platform has a discount would be treated as a violation.
This would be a violation of Apple's policies.
I sort of understand why people have a hard time grasping this, and I don't think it's through any fault of their own. It's because it's such an obviously anti-consumer, anti-competitive policy that I think normal people assume "it cannot possibly be the policy that Apple has."
There's almost a defense in audacity: Patreon must be lying about its options because, come on, Apple wouldn't seriously ban links, right? No company would be that bold, right?
The policy is so blatant that people assume there must be something they're misunderstanding about it.
Afaik from other discussions of this Apple do not allow apps to inform users that they can pay cheaper outside the app
There is the simple solution taken by companies like Spotify and Netflix.
Have a free app for users, but only accept payments through your own website.
In which case, Apple doesn't get a dime.
Spotify had a nightmare of a time getting to that point.
Same with Floatplane, a streaming platform from LTT.
If you actually try to copy Spotify / Amazon you find out very quickly they have exclusive deals and their own account managers. You actually will not get approved for 5-6 months if you try to copy them, and even use their same exact UI and verbiage.
This is the part of the problem with Apple app store.
As far as I've seen, this isn't any sort of exclusive on Apple's App Store or Google's Play Store.
Free apps that allow users to access paid subscription content aren't required to accept payments for the subscription through the app.
https://www.quora.com/Is-it-possible-to-avoid-paying-a-30-co...
Here is just one example about how hard it is to get approved, and reflects my experience as well.
https://www.youtube.com/watch?v=WzQw3kEbEio
You can say it's easy, but if you try to make your app only take payments off platform you will fight with Apple for months.
Apple will gladly say they aren't preventing you from taking payment off platform and then make your life hell. They are big enough that this isn't some accident, this is 100% on purpose.
The whole LTT saga went on for nearly 2 years, you can watch all of it through their podcast: https://www.youtube.com/results?search_query=floatplane+appl... AND they had the benefit of having millions of viewer leading to them getting an active account manager... Imagine some random company.
This is actually only an option if you qualify under Apple's definition of "reader" apps - ones that are pure content-consumption, nothing interactive etc.
If you don't qualify as a "reader" app, what you're suggesting actually isn't allowed - you're _required_ to offer IAP if you provide access to the service in-app
3.1.3(b) - "may allow users to access content [...] provided those items are also available as in-app purchases within the app"
https://developer.apple.com/app-store/review/guidelines/#oth...
The app I work on is a content app, but they decided it did not qualify as a "reader" app because we had polls alongside the content, which were interactive and therefore excluded us from the definition.
Apple & Google Pay is my guess. Which I don't use, just because it's rent seeking and leads to this.
I use the websites. Don't want to install bloody apps which request every permission available. My browser has most of those set to denied. Don't even ask for permission, outright deny.
Apple Pay and Google Pay work with an existing card for normal (non-IAP) purchases. I don’t like rent seeking either but in this case it’s the standard CC payment flow. Nothing additional, just better security.
What makes a normal CC better?
One doesn't need a phone or battery to use it, just a bank account and the plastic. Google and Apple now want to become Visa. Yes, their system is more secure.
You can use apple and google pay on normal websites that have it set up.
Based on the context given in the OP, this conclusion does not follow and is not fair.
1. Patreon is passing the 30% on to customers by default, or allowing creators to pay for it out of their existing income, so Patreon isn’t making any value judgement at all. They are leaving it up to creators and users.
2. Even if they weren’t doing (1), there are other factors in play that don’t make this a fair “experiment”. Most notably that established platforms like Amazon and Spotify _don’t_ find the value here, contradicting your assertion that most companies do.
Note: I didn't think Apple historically allowed (1), which also invalidates the “experiment”, but maybe terms have changed recently.
That’s incorrect. They are phasing out two of their three payment options (per creation and first of month) for all creators in order to have the right to operate an app on iOS. That’s a value judgment - Patreon would rather have an app than continue to make independent business judgments. They could have said “well, people can just use their browser on iOS” and it would have meant far fewer changes to their business. The browser only approach is clearly not preferred.
Clearly, having an app with easy payment infra is worth a lot, just as the person you’re replying to suggested.
The question is why the web never developed effective single sign on payment solutions.
Even if the web developed effective single sign-on payment solutions, it would make utterly no difference for iOS, since Safari would never support the same. You can easily bet your life, that Apple would reject this or only maliciously comply.
https://httptoolkit.com/blog/safari-is-killing-the-web/
In the OP Patreon leads with a pretty strong assertion that they would not be making these changes to their subscription model on merit alone. “Do this or you’ll lose X% of your users” is not Patreon making a value judgement on 30% margin, it’s post facto extortion.
Nothing is answering the question, “would Patreon itself take a 30% hit to margin just to operate natively iOS”? I am pretty dubious.
My point still stands that none of this is fair first principles representation of the value the platform provides. I’m sure the product conversation and user research inside Patreon HQ is much more along the lines of “fuck you Apple you’re making me choose my 10% iOS user base over the 7% of global users that happily use per-creation billing”. Not “oh Apple was right subscriptions are a more consistent payment model for users why didn't we realize that before thanks Apple here’s your 30% rev share for the idea let’s just pass that cost on to our iOS users they won’t mind”. LOL
Notifications. Performance. Responsiveness. Bandwidth. Offline access. And a lot of users simply find apps to be more convenient than browser bookmarks. I use the web interface for Patreon, but I can see why some users would want the app.
Why does Apple themselves have apps for things like maps, news, stocks, weather, video chats, etc? These all rely on web services and could theoretically be handled in the browser. I don't think any of these examples even provide users the ability to buy anything. Clearly Apple recognizes a value in some services being available through native mobile apps.
No thanks.
Isn't Patreon basically a web site where you can pay a subscription to ... something? Why would it need all that? Does the subscriber content get delivered through Patreon?
You and I may not want notifications, but a lot of people do.
Yes. Many of creators deliver media content through Patreon.
Announcements, updates, Q&As, early access to regular content, bonus behind-the-scenes content, and sometimes exclusive content. It all depends on the creator.
Ah so it's more like Steam than like just subscription management. Thanks.
Wondering about that, too - I always use the website on my ipad since a browser allows me to enlarge the font size when reading novels on Patreon (a feature that the app does not offer).
Not only can you increase the font size, but Safari has an immersive "reader mode" where you can change the font and color scheme, and even have Safari dictate the page to you. A massive percentage of organizations that develop native iOS apps do so because:
* Users have been indoctrinated by years of marketing (e.g. the "there's an app for that" ads).
* Safari hides the "add to home screen button" deep within the share menu, and home screen real estate is incredibly valuable. Native apps have the advantage of Smart Banners [1].
* For several years you couldn't use notifications from the web via Safari, and as much as I hate annoying notifications, it's undoubtably useful from a business perspective to be able to ping users and remind them to use your application. Even after allowing notifications in Safari, they made sure to introduce Live Activities which are exclusive to native apps.
[1] https://news.ycombinator.com/item?id=39181567
I use the web app if possible 100% of the time, but there are other generations that only (or mainly) use cellphone apps.
30% is deliriously high. Make it 10% and maybe then we can talk.
It's monopolistic extortion.
YES. So much this. Patreon doesn't even mention the web version in their blog post.
Stop making apps when a website will suffice.
more and more people use mobile phone than ever and less and less people do googling and use "Apps" than bookmarking link to a website
You may not like it but programmer reading news in HN is not common in global scale
plus mobile apps is just value added, same reason you have dekstop app vs webapp
There's an advantage to using in-app purchases when you doubt the developer, so either you think they're going to overcharge you or make it difficult to cancel. However this is not the case with Patreon
So I don't know what's the case here, but sounds like people who get confused by bubbles of different colors
I’m a creator and have many supporters on patreon.
I didn’t know there is an app and I don’t care.
Yep. If I were Patreon, I would ditch the iOS app. Apple doesn't deserve a 30% gotcha capitalism mafia extortion fee.
I assumed it was so they could skirt around the privacy built more consistently into web browsers. Or that they are still stuck in the "There's an app for that" era that I think we have collectively left behind.
It’s time for tech (not just Apple) to be broken up. If only we haven’t defanged the regulatory agencies …
Broken up in what way, and how would it help?
If it was an open platform, then Apple couldn't charge any more than Steam which is on an open platform, because nobody would pay that much unless forced to.
Wait, Steam charges more?
Never mind.
If you're suggesting that Steam doesn't have an effective monopoly on the PC market, I have bad news for you. One of the biggest differences between Steam and Apple is that Steam does a better job of hiding the effects from users who will lash out at creators who talk about problems on the platform.
An indie creator I follow recently implored fans to buy their next game on Steam and not other platforms... because in order to be profitable they absolutely needed to get their game to be ranked on Steam above a certain review threshold, and reviews of the game would only count towards their ranking if matched with specifically a Steam purchase. And once again, I get this weird feeling. I'm struck that at the point where a creator is begging users to reinforce the most dominant PC gaming platform because if those users buy the game somewhere else that has better creator terms and fees, the platform will (in effect) punish their store listing, something might be going wrong with the market.
Sometimes Apple advocates will point at similarly bad situations in other markets and say, "what, are you going to regulate that too?"
Don't threaten me with a good time.
I always buy on Gog first because they really care about the user. No DRM, the ability to download safe copies in case some lawsuit happens and things get pulled out (e.g. like half the music in GTA San Andreas!).
I understand you as a creator prefer steam but I wouldn't obey that, sorry. Also, reinforcing their market position is not in my best interest as a consumer.
I think you may have accidentally misread my post, or maybe I didn't word it carefully enough (in which case I apologize for the confusion). I don't prefer Steam. As a consumer, on principle in most cases I refuse to buy from it.
Steam effectively punishes creators for not steering users towards their monopoly, and they have a ton of tools for user lock-in: Steam Input, Steam Workshop, etc... They may not be as egregious as Apple, but they are often pretty egregious in their own right.
In a normal market, having a diverse set of users across multiple platforms would be a good thing as a creator, it would give you security and give each platform less power over you. Steam uses their review system to punish smaller creators who have a diverse userbase, and it uses their response to cement its market dominance even more and to give itself more power over those creators and their players. I would argue this is bad for the market.
My bigger point here is that Apple advocates will sometimes point to Steam and say "they charge high fees too, what's the problem?" There's are multiple reasons that Steam is able to charge higher fees than most of its PC competitors and remain the dominant platform for PC games, some of them due to the way that it methodically weaponizes incentives for both players and creators against alternatives. Comparing Apple to Steam does not make me like Apple more.
I see the parallels that you're drawing and I agree with you, but I still see major distinctions.
The biggest example I'd like to call out here is that I recently moved from Nintendo Switch to Steam Deck. I was astonished by how much the Steam Deck is just a Linux computer. And I was fully able to install Heroic Launcher, which is compatible with GOG, and install all my GOG games on my Steam Deck and have them work just fine. This is light years away from where Apple is. If Apple had anything remotely like this, I would be a customer quite quickly. But it's the lack of freedom and choice that I find so objectionable.
Main difference is steam is pretty clever about how they do this. They will pull out very fast if customers start to complain, maybe reworking it later on (paid mods -> steam workshop). Meanwhile, devs on the wrong end of the stick can get some of the worst customer service out there behind the curtain. The only way to get steam to respond is to be lucky enough to cause enough customer ire (e.g. Stein's Gate prequel not being approved for Steam. Despite having an ESRB rating... until customers complained).
That's how you get stuff like the Wolfire lawsuit but people chastising Wolfire instead of Valve.
Most other companies don't even pretend to care and just eat the PR hit. That cynicism will build up over the years, so there's much less sympathy for Apple.
Supporting your "I don't prefer Steam" point, I make a point of supporting Gog (and SetApp!), only to find out that many of the games sold there are crippleware. Deep in the fine print of the non-DRM'd version distributed as 44 floppy disks (OK, not quite, but it feels like Slackware from the 90s nonetheless) is that this non-DRM version cannot multiplayer, not even offline LAN in the household.
Even more surprising, Gog's DRM'd version multiplayer may require ... STEAM! ... to run.
This is galling.
(For the game that most annoyed me, Baldur's Gate 3, this may have changed once Larian introduced their own cloud sync. I haven't tried again, the first experience was that tedious.)
How can you call any of that "punishment" or anti-competitive?
Steam offers the far superior platform, in every possible aspect. Every thing you've said is them OFFERING (not FORCING) better solutions to things.
For example, in what universe do you think it's sane to think a store front should accept random reviews from random people? Having bought the game is the one of the best metrics to tell if a review is even approaching sincerity.
Not having random reviews in the steam reviews is a feature.
And in the context of Android or iOS, the PC gaming market is SUPER DUPER EXTRA diverse. I own games in like 5 different stores, but always prefer Steam or GOG where possible.
Offering better services and getting more user because of it is not malicious or anti-competitive or monopolistic. It's the best possible outcome (assuming you like capitalism).
A huge difference is Steam doesn't come pre-installed on your computers nor does it block you from installing other game managers.
Fair point.
I do think Steam is engaged in anti-competitive behavior, but that doesn't mean they're the full equivalent of the app store. And we can see on the PC market the large number of indie games that very literally would not exist if PCs were locked into only using Steam.
My point here is more that Steam is not really a good argument for justifying a pricing model. But it's a good clarification that in many ways Steam has "only" mostly locked down the PC gaming market, where Apple has gone further and locked down the actual software that can be loaded onto the phone.
Unrelated, I've noticed for a few years now, several of those HN similarity things claim we're proximate.
Perhaps they just think we both say Apple a lot.
Huh, that's interesting. I've never really looked into them before, but could be. Might also be speaking style or which articles we comment on.. I don't really know what metrics they look for :shrug:
Not what I'm suggesting. In fact, you're making my case beautifully.
I'm agreeing that the PC being "open" isn't what makes the difference.
People are barking up the wrong tree. Your argument is much as the one I made elsewhere in this thread for why there's Amazon when there's Alibaba, and Amazon can charge not percentages more, but many times the price, for same products.
Tangentially, "imploring" people reminds me: I encourage Mac and iPhone toting friends to try SetApp. It's like Apple Arcade but for utilities. It's not from Apple, and people are confused it works for iOS. Once they try it, they set it and forget it. I don't know if it's working for the app owners there, but the value/reward seems much more balanced than the world where every widget wants $119.88 to 239.88 a year (12 x $19.99).
Less tangentially, there are ways to exploit users and ways to add value. The second is harder.
Apologies, I misunderstood what you were saying. Generally good reminder to me to regularly take a step back and try to figure out when I'm reading more into a comment than what was intended.
This is a good point, but I do think the "open" part is possibly a pre-condition to making a difference. But that's kind of squabbling over details, I completely agree that iOS being open to sideloading would not be enough to change the dynamics.
And we know this because... well, Android exists. Android is a really good example of how sideloading is great and something that I love, but also not sufficient on its own to curb anti-competitive behavior.
You're comparing apples to sofas, in my opinion.
The issue with monopolies isn't just their existence, it's their active efforts to keep their monopoly and the negative effects this has on the customer.
Apples monopoly hurts customer, reduces freedom and extracts rent from developers that HAVE NO OTHER CHOICE.
Steams (supposed) monopoly comes entirely from offering the better product to users and developers. Did you know you can generate Steam keys of your game FOR FREE, and sell them away from Steam, giving Steam 0% cut and 99% of the distribution costs?
Compared to Apple, the vast amount of options on PC to acquire software or games means Steam isn't even close to a monopoly. At the very least, they don't have the power to do monopolistic practices and they also just don't abuse them.
Steam is genuinely the closest thing to a perfect company (at least if you like capitalism).
Your "nobody" is doing all the work. Steam distributes to Windows, but you aren't required to use Steam to distribute to Windows, and then many people don't. Adobe isn't paying Valve to distribute their suite. Epic doesn't use it for Fortnite. Random enterprise software developers have nothing to do with it.
It's like pointing to the existence of people who willingly buy a BMW as a justification for forcing everyone to buy a BMW whether they want it or not.
products aren't markets. Steam is a market and many games only launch on Steam. That's a sign of a monopoly, be it deserved or not.
Still, I'd rather have some aspects investigated because monopolies are historally dangerous.
Steam is both a store and a promotional system, but the fee for the promotion is built into their cut for selling your product in their store.
If people are willingly paying this because the promotion is worth it, that's not necessarily a monopoly. And you can tell if they're willingly paying it because they have the option to distribute to the same customers by other viable means, without paying the fee but also without getting the promotion. And then as we can see, some people pay and other people don't.
You could make the different argument that they have a monopoly on games promotion by itself. I don't know if you'd win that one or not, but regardless it's distinct from what Apple is doing.
I don't want to too into the weeds of Steam here, so I'll keep this one really brief:
I don't think 'putting product on shelf' is 'promotion'. IF that's your only reason and begging the question leads to "becasuse we have 90% of the userbaase", that's a monopoly. Steam is lauded by their audience for only using their local history to recommend games (i.e. they have a realtively simple tagging system they rely on to serve games), so I wouldn't say this is anymore promotion that Google Search is promting "best game 2024" when I search "best game 2024" (in some utopia where the first 3 results were SEO slop).
I really hope people day understand the difference between "monopoly" and "monopolization", because this seems to always come up in this topic.
"Monopoly" is a very mechanical, neutral term, legally speaking.
So yes, you can in fact say Steam is a monopoly (in an objective, legal sense), but also argue it not being illegal because "seller has a superiod prouct/business". Monopoly is not a scary word by itself.
In terms of its 90% marketshare and indusry warping effects, it'd be very hard to argue that Steam isn't a monopoly. It'd be easier to argue Google/Apple in mobile aren't monopolies; At least they have each other to shield from their duopoly. Steam has no contender in the US.
"Monopolization" is a scary word.
One leads to the other, so I don't blame people for conflating one or another, but it's an important distinction if we're going to start trying to talk about what is/isn't a monopoly, or monopolizing behavior.
----
So, does steam engage in monopolization? Yes, but in much more subtle ways than what Apple/Google are doing. They are very smart about it because they care a lot about consumer feedback, and consumer feedback drives a lot of discussion on social media. But that's a discussion for another inevitable day.
People choosing the better product is not and has never been a monopoly. It requires active anti-competitive actions to maintain that monopoly that makes it a monopoly.
At least, that's the way I've seen people speak of monopolies exclusively.
Adobe isn't paying Apple either.
You buy Adobe from Adobe, "Get" Adobe from Apple, and log in with an email.
Also, a minority of consumers by headcount choose Apple. A majority of wallet share is spent by those who do choose it. That's behind most of the sour grapes.
Adobe absolutely supports in-app purchasing for Creative Cloud. So does Microsoft with O365.
These conversations often seem to miss that Apple’s requirement is that consumer purchasing be presented as the singular option in-app, not that you have to pay Apple a cut for purchases outside the App.
Even Amazon Video supports in-app purchasing of a Prime account restricted to Prime Video access. They just know next to nobody is going to use it vs an actual Prime account.
48% (uk) ain’t no minority. This is a duopoly
This is the sort of thing where Apple is playing politics, disallowing the same behavior for others while carving an exception for the ones with enough influence.
Ask yourself why Adobe can do this but not Patreon.
This argument makes no sense. People don't want to be paying 30% to Google Play either. Maybe this is why they complain about Apple more than Google, but the nature of the complaint is the same regardless of how the user base is distributed.
Yes, and no? It's funny because steam works the opposite way. They charge 30% but reduce the cut if the publishers makes over $X million a year (I think it's 25, but I can be wrong). Apple charges 15% if you're under 1m/year or 30% otherwise.
but yes, Steam was another early adopter of digital commerce and is leveraging its (slightly illogical, IMO) network effects.
Generally, the Apple Store would be a separate company from Apple phones. A user gets to choose which store they want to use on their phone. Along with other things like which map app is the default.
This way, the different stores could compete - by charging lower fees or offering more services. Like the android store does a bare-bones check of the app and so it only charges 10%. Apple checks every app throughly, so it charges 15%. Some open source store might have 0% fee, have no app checks, no payment processing, and it is 100% on the user not to download infested software.
What a cluster fuck that would become.
I can see it now: needing to have 15 different stores with subscriptions to get apps who all have different deals with different apps for exclusivity.
No thanks.
And yet that isn't the case on Android, macOS, Windows, etc.
This nightmare scenario only exists in your own mind and you're spooking yourself over it.
Windows store, steam, Xbox game pass, epic… That’s just off the top of my head, then you have the package mangers like WinGet and chocolatey.
Compare how many toxic practices there are in steam games with phone games and yeah, I massively prefer that over the app store monopoly.
App stores encourages shitty practices over healthy ecosystems, the model for computers has resulted in much better products with less consumer hostile practices.
Apple isn't an expert on games, they shouldn't decide what games to suggest and what games should be allowed on the phone, a dedicated game store would be a huge upgrade.
Edit: And no, phone games aren't consumer hostile because they are on phones, they are consumer hostile since the appstore encourages the games to be consumer hostile. You don't see many in-app purchases or ads in steam games since steam doesn't encourage those, while the appstore encourages it.
So you see phone games be shit because the appstore, do you really like phone games as they are or would you prefer them to be like steam? I don't think anyone prefers the phone game in-app purchase toxicity we have now.
Android store is the only one anyone gives a shit about, and even there, to suggest that android is anything but a monopolized store is you living in a land of rainbows and unicorns
We are already seeing it on PC where epic is buying titles. Microsoft it’s trying to make my exact nightmare scenario a reality each passing day.
Just cause you lack imagination of corporate bullshit harming consumers in an unending chain doesn’t mean everyone is unable to see it.
Remove app stores completely, kill the "app" concept, and force platform providers to offer to browsers the same capabilities as apps.
Browser capability has been stiffled by the drive from Apple and Google to favor apps (e.g. Safari is the IE of 2024). It's high time this trend is reversed.
I think an important aspect is that exclusivity deals should just be illegal in general. In that scenario, or with movie streaming right now, the different stores/platforms don't actually compete with each other. They are in a money throwing contest over who can get the most exclusive licences. Their actual product, streaming a video to your device, isn't relevant to competing at all.
This is also the sole reason why I will refuse to install the epic games launcher. They whine about steams dominant market share while they try to force people to use their platform. Instead of actually competing with Steam, because that would require epic to make a better product and that needs effort.
the stores are just that. These aren't PC launchers that monitor every game for achievements or act as communication hubs.
The store pops up (and not even the whole store, just some financial popup or webpage) when I need to pay and is otherwise just some icon in a drawer idling. I don't see managing subscriptions anymore annoying than managing 15 subscriptions from different websites. And if that's annoying there are apps and sites to manage that. Just like any other utility bill you have).
Alternatively: don't download any other stores. Again, these aren't games: how many times do you need to search something up and don't find at least 10 different apps that solves the problem?
Although I agree in principle, the counter-argument to this is that Apple would ultimately be blamed in the minds of consumers for not keeping those devices protected from bad software. They could say I told you so, but that doesn’t help them after the golden goose of the App Store has already been cooked.
To be brash, maybe consumers need to learn how to protect themselves or move to dumb hardware that is impractical to hack. I don't understand this trend of blaming corporations for not being the de facto gatekeeper of security. They should help minimize spam/malware, but if you're going out of your way to disable those securities (likened to turning off Windows Defender after 2 warnings), your insecurities are self-inflicted.
Many "opponents" aren't asking to change the default experience. They simply want the reigns to take those risks and tinker. Most people can barely even find the theme settings on Android; I won't believe a signifigant portion will get through idiot-proof safeguards just because "well they have a chance to now!"
As a technically minded person, I must say I don’t know how to protect myself from secretly malicious apps.
A weather app needs my location and network access. It doesn’t need to sell ongoing location tracking information associated with my device identifier and IP addresses to marketing companies.
I've been a software engineer for a while, but I don't solve this using a technical approach. I've avoided having apps abuse me by choosing apps written by folks that have no incentive to abuse me. This means going to open source and community-driven apps as much as possible. Of course there will always be proprietary apps and in those cases I need to look at the entity that wrote the app and how much I trust it in terms of their development practices and incentives.
I've used Android for more than 15 years and have never had an issue with malware or viruses or anything of the sort. 90% of this is refusing to install apps that I don't absolutely need. And the rest of it is probably using open source and community apps instead of corporate apps whenever possible.
Unfortunately, the approach of "de-commercializing your phone" is not something that Apple will ever support or allow because it doesn't make them any money. Luckily on Android, I have access to FDroid, which makes this entire approach possible.
fortunately, GDPR covers that already. Or CPPA if you reside in California.
But that's not quite what by Malicious. Malice implies intent for bad desires. A company selling your weather tracking data with dubious consent is simply greedy. It very likely wouldn't be in your top 10 list of perpetrators if your phone was hacked, wiped, or stolen.
I don’t know look at all those people turning off sound check (volume leveling between songs) on their iPhones based on complete fabrications and misunderstanding of what it is and how it works. It’s buried deep, but people still do it.
Not only security. Keep in mind that most of these gatekeepers come from a country where they prefer violence to sex.
Most people can't use systems well enough to take charge of their protection. Ideally they wouldn't need to use systems beyond their competence any more than I should have to synthesise my own ibuprofen from scratch (I wouldn't know where to begin), but software ate the world so they can't opt-out either.
Old survey now, but I doubt the results would be significantly different today: https://www.weforum.org/agenda/2017/02/a-quarter-of-adults-c...
Governments, the alternative place to seek security, can't do it. The attacks are global in origin, cross border government cooperation isn't at that level, while all Apple local corporations worldwide are all aligned with the one in California.
This trend was preceded with "install antivirus", which had some overlap with "don't connect to the internet" back when that was practically possible.
Those warnings are themselves seen as Apple trying to prevent people switching to other stores.
What counts as "significant"?
For example, 1% of a nation having their bank accounts drained would be a huge issue — I think that's about 15 times what ransomware currently costs per year.
I've yet to encounter a system so well designed that it's at the 99% level of "idiot-proot", the closest they get is by being the exact opposite: too hard to use so the idiots hurt themselves some other way first.
Apple doesnt need to be broken up, they just need to be forced to open their devices. No proprietary apis that only they have access to, when you open the phone for the first time you should be able to pick what store to use and they have to allow alternative browsers
I agree that consumer ownership rights to their computers are the more pressing issue, but Apple should probably also be broken up. The problem is how to do that without destroying the value they bring to consumers, i.e. where do you draw the lines internally?
I don't think it's possible to break them up without immense value destruction.
Breaking up standard oil famously created a lot more value.
Apparently that's still controversial (I learned just now while trying to learn more about the breakup). However, it was easy to see cut lines in Standard Oil.
Breaking up (and privatising) the UK national rail network didn't work so well; a few years after it happened, the party who did it lost power, and had apparently forgotten they had even done this to the trains as they were running ads saying "you paid the taxes so where are the trains".
Apple's iPhone can clearly be split into "hardware" and "software" because Android QED; but that's not sufficient because the Play Store gets much the same criticism.
Likewise the App Store can obviously be split off, the technical issues are demonstrated by what already exists. But, the Samsung store isn't stopping the criticism of the Play Store, so alt stores are also not enough here for iOS either.
I was expecting anti-trust issues before it reached "just" one trillion dollars of market cap, let alone three, so who knows.
There is such a thing as a natural monopoly. Usually these are more efficient when run by the government because they inherently cannot benefit from the advantages of market competition.
I think payment collection needs to be. Any sufficiently large payment infra becomes a vehicle for religious evangelism, and at that point it needs to be removed from private hands.
Nah, just Apple. Whenever any other tech company tries bullshit like this, alternatives pop up and people switch to them. When Apple tries it people make excuses for them.
If only we haven’t defanged the regulatory agencies …
FTC is more active than it's ever been under Liza Khan, particularly in this sphere
I think you mean we should de-FAANG the regulatory agencies.
There is a video link on the page from the original post where the Patreon CEO explains and reiterates the issues.
Notably, at one point, he says that Apple Platform brings in the most money to Patreon.
So there, looks like Apple brings in the money for Patreon. Apple seems to want a cut of that.
Apple users bring in the money for Patreon.
I own an iPhone. I am not Apple, and Apple does not own me. Why should Apple be able to charge money for "access" to me, as if I were a prostitute and Apple my pimp? I'm simply using a computer, which I paid for.
So I'll start by saying that companies like Apple need to be regulated, as they're misusing their market power to the detriment of everyone but them.
However, your argument isn't what you think it is. It's extremely common for companies to sell/gatekeep (Or "pimp" as you put it) access to "their" user base. Think credit cards (Amex can charge merchants more as because their users tend to spend more) or even club memberships like Costco (They're certainly not letting telcos sign up users for free.)
This is a very strange analogy.
I didn't buy my credit card. I don't own it. The credit card is just a little piece of plastic, totally useless without the line of credit, i.e, the service provided by the credit card company, in stark contrast with my computers, which can be used quite extensively without the App Store.
The credit card company is not gatekeeping "access" to me. I can pay for things with cash, a debit card, a check, etc. If I choose to pay with a credit card, it's because I wish to take advantage of the specific features of the credit card, the primary one of which is the ability to pay for the product later rather than at the moment of purchase.
You can be both an Amex and a Visa card Customer.
You can also be an iPhone and Android Customer at the same time as well. As well as a web user.
Amex charges higher fees, and offer specific services to their customer base.
Yes, which supports my point.
Who does this? Barely anyone. Most people can't afford to buy two smartphones, and even if you could afford two, why in the world would you use two of them simultaneously? That sounds extremely inconvenient, for no apparent benefit. Practically speaking, a smartphone is an exclusive relationship; you pick one at a time.
Yours is such a bizarre hypothetical.
In any case, the crucial difference is that a smartphone is a product of independent value that you can buy, whereas a credit card is not. The piece of plastic is just a container for your credit card number, a means of accessing the service, a line of credit.
This is missing the broader point, which is that companies absolutely do gatekeep access to "their" customers all the time in several industries in and outside of tech. Customer acquisition costs a lot of money, and one of the ways businesses recoup their costs or boost profits is by monetizing them by selling access.
The problem with Apple doing it is that they're abusing their market power.
You're still in need of examples, because I've already explained how credit card companies don't gatekeep access to me.
iPhones also cost a lot of money. Apple sold almost $40 billion worth of iPhones just last quarter. I'm quite certain that Apple is recouping its costs via hardware sales.
There are plenty of examples out there, but keeping it to the ones I've already pointed out:
Costco makes the vast majority of its profit from membership sales, and not from the items they're selling. They absolutely gatekeep access to "their" customers, and regularly play hardball with their suppliers to keep prices low, even major ones like CocaCola. Suppliers that don't meet their terms don't make it to their warehouses. Same as Apple.
The difference is their market power.
You don't seem to understand what gatekeeping means.
In the context of iPhone, it means that the owner of an iPhone is not able to install software on their own iPhone without Apple's permission. It's a restriction on the owner's freedom.
Neither credit cards nor Costco memberships are analogous, because in the first place, there's no ownership involved, as I already explained. With a Costco membership, you certainly don't own part of Costco. You're simply buying temporary access to the store. In the second place, there's no restriction of customer freedom. A Costco member is free to walk across the street and buy Coca-Cola at any other store. Coke is Coke: it's the exact same formula in every can or bottle. It may be more expensive elsewhere, of course, and that's the point of the Costco membership. But there is absolutely nothing in the world restricting Coke and customers of Coke from coming together.
I have no objection to Apple having an App Store and setting terms for its App Store. It does this on the Mac too. My objection is that unlike on the Mac, the iOS App Store is the sole source of software, and iPhone owners are not free to shop elsewhere, again unlike Mac owners. The iPhone gatekeeps its owners in a way that the Mac does not.
It's not really about market power, because iPhone owners have never been free to install software from outside the App Store, not even way back in 2008 when iPhone sales were vastly smaller. And that's always been wrong.
If you want another example of customer gatekeeping, I'll give you one: John Deere tractors using DRM to prevent tractor owners or third-parties from repairing the tractor. That's wrong too.
You don't seem to understand that gatekeeping doesn't mean your myopic understanding of it.
In the examples given the businesses restrict access to (i.e. "Gatekeep") "their" customers to those that want access to them. In the Costco example, if Coke wants to sell to their customers, they'll have to come to terms with Costco before doing so. No agreement with Costco means no access to Costco customers, which is a lot of customers. That's all it takes to meet the definition gatekeeping, because that's what it is.
If you want a 1:1 example, then just look at gaming consoles, their whole business model depends on the same one giving Apple antitrust issues. Same gatekeeper restrictions.
Which then leads to market power. It's not that the business model is, or even should be, illegal per se, but abusing their market position to amass undue control over the market they operate in. That's when antitrust laws come into effect, and why we're seeing Apple in the crosshairs of the DOJ and not Nintendo.
It has everything to do with market power.
Specifically, it means no access to Costco customers inside Costco. But again, Costco customers are not forced to shop in Costco. They can shop anywhere they please, including but not limited to Costco.
That's the essential difference. iPhone customers are forced to shop for apps inside the App Store. They have no access to alternative stores, unlike Costco customers. Costco cannot prevent their customers from shopping for the same goods in other stores.
Agreed.
I think it should be. In my opinion, it's one and the same with the right to repair. Once I pay for my computer and walk out the door, it ought to be mine to do with as I please.
I don't want to get into a debate about what "is" legal or illegal in the United States. As I see it, the law is whatever a majority of the Supreme Court decides it is on any given day, precedents and principles be damned. And antitrust enforcement has been practically nonexistent since Microsoft got a slap on the wrist a couple decades ago. I don't expect Apple to have much trouble here in the near future. Of course Europe is another matter.
Agree on every point. But I think I will stop here. As this isn't the first time OP has been at this. It is also clear he doesn't understand difference between market access, market power and exclusivity. He is also rude and not the first time either.
I think it's even more base than that. Valve does it and users are happy (I have hot takes on this, but that's a later, inevitable discussion for another post). Because they continually re-invest in Steam to add more features, niceties, and convenience. Customers feel respected. Costco does it because ultimately customers who buy in bulk get deals that pays the membership back, as well as a very cheap food court.
What's the last "rewarding feature" Apple's really done to the app store that made customers feel respected? Not something like the Play Pass where "you spend 500 dollars and we'll give you a 5 dollar coupon!".
I'm genuinely asking as an android user and I can't even think of an answer on the Play Store. I had to look it up and family sharing seems to be the most recent option from 2021/2022-ish.
I dont think, the customer, or in your example "you" does not even come into the equation.
It is straightly Apple and Patreon. And in terns of Apple, they do think Patreon is accessing their customer base ( You ) and hence they want a cut of it.
This comment makes no sense to me and contradicts itself. First sentence:
Second sentence:
Of course I come into the equation. Apple does not and cannot subscribe me to a Patreon without my initiative and consent.
You are acting as if someone is forcing you to do it.
To word it better, You the customer does not come between Apple and Patreon.
I had the same feeling but I couldn't put it to words that well. But you hit the nail on the head. Thanks for this!
really solid point. they shouldn't be able to.
I'm not surprised.
The dirty little secret people won't talk about is that monetizing anything is so much easier on iOS because Apple users have, in some combination, more disposable income to offer, and are more willing to spend money.
This has been the elephant in the room for my entire career, almost 11 years working in apps. Monetizing on Apple is easier. Getting Apple users to put down money for good software is easier, and Apple users will pay more for the software they want.
There's a lot of reasons for this, many of them socioeconomic in nature that mark out the differences between your average iPhone user and your average Android user, and I don't want to get into that quagmire and be called elitist: all I'm saying is, when Patreon says the vast majority of patrons are buying from iOS powered devices, between iOS being easier to monetize and the general populace being on their phones far more than their computers; yeah that makes complete fucking sense to me. I believe him.
I'm not sure it's a quagmire: iOS devices are more expensive compared with the competition. I don't think this is up for debate.
Given that, a null hypothesis might be that since their owners are happy to pay more for their device that they have more disposible income?
I don't think it's up for debate either, but it doesn't change that a lot of people I've interacted with, online, at work and even at conferences don't like talking about the... differences in monetizing on the two major phone platforms.
Hmmm - it's been well known and talked about when I've worked for large B2C apps! In London.
That fact is neither dirty nor secret. I know you were using a figure of speech, but still. Everyone knows it.
That's also pretty obvious, and likely because Apple users, whether mobile or computer, tend to spend more per capita on hardware than Windows or Linux users, simply because Apple hardware is more expensive.
It was already true on desktop, before laptop, and before mobile, on Apple devices.
I think another big reason why Apple users are more willing to spend money is because they haven't normalized providing 'free' services the way Google has. But, I think Apple's gradually starting to encroach into pushing it too far though.
American-manufactured automobiles bring in the majority of money to drive-thru restaurants too. Should they get a cut of drive-thru restaurants' revenue?
I think the example is a strawman
if American manufactured automobiles were bringing in substantially more money to drive-throughs than Japanese ones - and if American made automobiles had a way to influence where you drive ... I think they would also get a cut from the drive throughs
If they were as smart as Apple, they'd probably try!
If you can afford an iphone, you can afford sending money to a number of random strangers without seeing a blip in your monthly budget. That is pretty much the reality.
"a cut of that" is doing a heck of a lot of work here to handwave the amount they're asking for.
A "cut" in this case means such a high percentage of the transaction that if Patreon didn't pass the extra cost on to consumers/creators, they would make negative dollars on each iOS subscription. That really genuinely does not strike you as odd at all?
It doesn't strike you as weird or maybe like a possibly negative market effect that Patreon as a platform should be more profitable for Apple than it is for Patreon? I think most people would say that's a signal that something might be going wrong.
I'll bite, kind of. People get emotional about particular companies so let's abstract them away: is it possible for a second-tier distributor to bring more value to a first-tier distributor than the first-tier brings to suppliers?
Looking at it that way, sure. It seems obvious. If a local distributor picks up a local product, and then a national distributor buys from the local distributor, it's pretty obvious that the national distributor brings more value.
Looping back to the specifics, if Apple was the primary means that people discover Patreon and the creators on it, sure, it would make sense. But for Patreon specifically that's not the case (I think). The economics would suggest that Patreon should do away with their iOS app, focus iOS users on the web, and everyone would be ahead.
Apple doesn’t let web apps do everything that native apps can do. Their App Store is the only way people get apps on their device and if a search for ‘patreon’ in the App Store returns nothing, that’s a lot of confused or angry people that are going to wonder what their monthly bill is for. Maybe some very low double digit percentage of these people will try to load a pwa from patreon.com
In particular Patreon can host things like podcasts so has a media player. The app isn’t just about configuring billing
So Patreon will need to become a reader app like Spotify/Kindle then that can do all this offline but you cannot subscribe or pay in the app.
The problem is that Patreon wouldn't even be able to tell people they can donate to their creators elsewhere due to Apple's assinine anti-steering provisions
This is honestly the main problem I have with that. You can argue that in-app purchase brings convenience etc. etc. and Apple deserves a cut and so on. But this enforced secrecy makes users unaware of the cost - they can't actually decide if the cut is worth the convenience or not. Apple relies on people not knowing the cost of the fees and that feels very dodgy.
That's really a solved problem. As an example, Google manages to have a web version of Youtube that works on iOS mobile Safari adequately. (It's not perfect but it works.)
There doesn't seem to be anything snowflake special the Patreon iOS app needs to do that a web app cannot handle.
Does it support playing media even when it’s backgrounded? Stuff like Picture in Picture?
Youtube is unusable on any platform without ad blocking, so who cares :)
I just searched the App Store for Patreon:
The top hit was an ad for Ashley Madison. Seriously.
The second hit was the Patreon app.
The third hit was ChatGPT for some reason.
But if the Patreon app was not in the App Store, no doubt there would be a bunch of scammers trying to pose as the official Patreon app.
Isn’t the whole point of the 30% apple tax to make sure their App Store isn’t full of garbage?
Not only but also; as with a real tax from a government, all the money goes into a big pot, gets mixed around, and then the expenses come out unevenly from that pot.
I'm not at all aware of where the boundary is between "that's fine" and "that's abuse of market dominance to fund uneconomical expansion".
Does anywhere have a specific "national defence" tax and another "police fund" tax etc. for each expense, rather than "income tax" and "sales tax" for each source?
IMHO profits should be ringfenced by activity and taxed accordingly - otherwise you end up with funds from one activity being used to subsidize another without taxation, creating an unfair environment for competition. Youtube being the perfect modern example.
Yep, interesting how that massive cut of revenue doesn’t do a thing to actually help consumers, who as a consequence are shunted with the bill anyway.
What? I have many many many monthly bills that are not iPhone apps. My gas bill may or may not have an iOS app, but I'm sure as hell not confused and angry if it doesn't.
Your gas bill is probably charged and billed directly by the gas supplier.
People get confused very easily when small digital subscriptions are charged through third parties on behalf of sellers whose name is often different from the app or service.
I'm not sure a shop app fixes that though. Better communication and better choice of names seems far more important.
I’m not sure who is regularly hitting the App Store to search for apps. I did back when the 3GS was out(, and maybe through the 5, but I assumed it was mostly boomers and the silent generation doing that.
Are you implying a significant portion of the population who stop paying things like their water bill when they find no hits within the iOS App Store?
That isn't obvious at all. In both cases the distributor's margin will reflect how much competition they have. If there is only one distributor, their margin will be large. If there are a thousand, competition will force their margins down. Whether they're local or national.
Moreover, in this context Patreon is the national distributor who needs to distribute content to everyone whether they have iOS, Android, web or something else, and each of the platforms is a local subcontractor for a subset of the customers. Which leads to exactly the problem. The notion that Google and Apple are in competition with one another in this context is false, because to distribute to Android customers you need Google and to distribute to iOS customers you need Apple. You can't switch from one to the other because Google can't distribute to iOS customers. They're each a different market serving different customers, and then they collect a monopoly rent.
What the usual trope that analogizes this to Walmart or Target is missing is that "Walmart customers" are also customers of Target or Amazon, but the large majority of iOS customers are not also customers of Google Play or any other app store.
It is still competition even in this context, it just happens on a slightly slower cadence. The Apple customers, by and large, are paying good money to avoid Google's app store because they believe Apple is a better steward on net.
Every time I buy a phone I have to ask if Apple's bad software decisions outweigh the costs of signing up with Google. So far the answer has been one sided in Apple's favour. Consideration of things like this with Patreon come up at phone purchase time.
You are wildly overthinking it. The average apple customer spends money on the apple app store because there is no alternative. Simple as.
You're looking at a different market. The customer in this context is Patreon and the product is app distribution. Patreon needs a way to distribute their app to all of their customers. Many of their customers have iOS, so Patreon needs app distribution to customers with iOS, and there is only one supplier of that.
In the sense that [bigger company] can make more money and reach more people than [smaller company], yes. But if all they are doing is sitting there and using that bigger presence, you can see how that roads ends in antitrust.
two big issues.
1. No one wins. Users lose the convinience of an app, Apple loses money from a potential large customer, Patreon loses views from being visible on the app store. It's just bad buzz all around for no good reason.
2. The underselling point that Apple has actively sabatoged web apps and PWA's which is part of why the DMA is coming down hard on them. We're well past a monopolistic power using its power to stifle competition.
Let's not pretend this trillion dollar company that already forces devs to use IOS hardware to develop (and took down their server OS's to boot), and charges a yearly membership to dev is scaping for cash here.
I don't follow this at all. If a big record label strikes an international distribution deal with a small label, the big label brings more value to the artist than the small label does. Is that necessarily antitrust?
I think you replied to the wrong post? I certainly didn't assert that out of pretense or otherwise. Though it's hard for me to fault "forcing" devs to own the hardware they are developing for. Phone software and iOS software have enough quality issues without letting developers ship stuff that has never been tested on real HW.
it ultimately comes down to what they are doing with that money in my eyes. Are they actually distributing as a presence inernationally, helping you gather talent, helping you to navigate the industry outside your area, introducing contacts and deals to you, and overall being pivotal to your small label? Sure, they get a bigger cut. They are actively growing you as a company.
Or are they saying "yeah I'll put you on our Spotify", pay you 10% of ad revenue, claiming exclusivity on your portfolio, and calling it a day? No, there's no value there that couldn't be done yourself. But you're paying for the "platform" they have. That is very much using their presence to exploit you. The key isn't necessarily "are they a monopoly" here, it's "are they abusing their position as a monopoly".
It's a tech specific sitution, but the main point wasn't the target platform, but development platforms. I can setup a Linux server rack with android emulators and use my Windows device to develop and deploy to said rack. I am forced to use mac as a development platform and they disconinued Mac's server OS. So I can't even scale up a test suite for IOS, I need to buy multiple iPhones or beefy desktop Macs to run a few emulators each.
great use of my subscription fee to maintain crappy emulators. They don't even have platform excuses like Android does.
Again, what am I really paying for here?
Does Honda bring more value to customers than your local dealership? The world may never know.
Does Warner Brothers being more value to customers than AMC?
Fair is what two consenting adults agree to in the market place.
I will. If most apple users refuse to go outside the app store for their content, Than clearly they care more about the ease of access than the content itself.
I agree that the high proportion t of take between the two firms says a lot about the state of the market. It also says a lot about the users, and what they care about.
I think people are shocked by these outcomes because they aren't used to thinking about transaction costs as meaningful. Transfer, trust, and triangulation are critical parts of an exchange, and their costs can be even greater than the good itself.
This has been known to not be true since capitalism was first conceived. I am the biggest free market capitalism proponent and what apple has on their app store is not free market capitalism, its pure rent seeking.
Apple users should be able to decide what software and stores run on the device that they own.
They do decide, right when they buy their phone.
And since we live in a democracy with laws where Apple's current arrangement can be voted to be made illegal, we can also decide to force Apple to open their device ecosystem (which may already be illegal).
Yeah we could. But just because we do, doesn’t mean it’s the right thing or the smart thing to do. Once upon a time alcohol was voted illegal and even now marijuana is federally illegal.
I personally think it’s a shame when the government takes something interesting and working and makes it illegal. Patreon could easily not be an app on iOS, but they really want that money, so now the government has to make laws on apple. Doesn’t make sense to me
Do you also think monopolies should be allowed to operate uninterrupted, then?
No I don't, but I get the feeling that you missed an assumption in the middle which is that Apple/iOS is a monopoly.
It's clear to me Patreon is not forced into having an iOS app. They do so because they think they can make more money. But they could be web only.
All of these entities already have a presence on Android + desktop/web and can operate just fine on those. They just want to make more money from the iOS audience.
do we really call "give us your subscription money or get banned" an "interesting and working" system? That's pretty much peak antitrust fuel there. This is quite literally what Epic spent years in court fighing over.
This is literally so many businesses. Are you kidding me? Get a membership at a gym. Then stop paying the subscription. And see if they kick you out or not. Or stop paying your netflix bill. See if netflix bans you. Btw, stop paying your patreon, see if you still get the videos. Every subscription business is literally give us your subscription or get banned.
I don't care what Epic is fighting in court over. Why is that mega corp the good mega corp? Mcdonalds spent years in court fighting the responsibility to pay for some woman's burns.
In theory, you could. In reality, however, you're not going to. Maybe the EU will, but it won't happen in the US.
You know that's not what the OP meant.
"Apple users should be able to decide what software and stores run on the device that they own."
It should be able to be decided while owning it, not before. The point is that a phone that doesn't give the user the same level of control over the software that the manufacturer has simply should not exist. It should not be left to market forces.
Yeah I know that’s not what OP meant. The problem is OP is not fully thinking things through with principles.
All these “problems” with walled gardens are well known and consenting adults keep opting into it time and again.
I think it’s arrogant to look at a system you aren’t even participating in (can we assume op doesn’t have an iPhone) and say “no those people are doing it wrong”
I don't like this "you consent to the walled garden" approach for a very simple reason: you can do both. Jailbreaking has existed for over a decade but no one was complaining about the walled garden collapsing.
Opening up IOS doesn't mean you need to open up too. The garden isn't going anywher. Take it from an android user that has had choice and google play is still the dominant platform. It's just nice that when/if I need to I can download open source stuff, or games in foreign languages, or just sideload some random apps I tinker with without paying $100 for something I don't plan on releasing to the app store anyway.
These are all very niche uses and I don't understand how my existence inconvinences the garden.
I do it with Russia and North Korea, so call me whatever you want. I'm not just going to dimiss it as "well its their culture" if their culture breaks fundamental principles I was raised on.
Are you really equating the human rights atrocities of those nations with Apple business practices?
Here's the difference - Putin kills people who disagree with him. If you want to leave Russia, people with guns stop you (see East Berlin).
And you want to equate that with simply making a choice to not buy an iPhone and buy another phone instead?
I agree, under the assumption that users jailbreak their devices. In my mind Apple has zero obligation to enable it maximum leeway to obstruct it. The people don't want they locked down single function phone, they shouldn't buy one.
if that didn't void warranty, I'd accept it as a reasonable workaround. But on top of that I'm pretty sure Apple acively fights with jailbreaking and jailbreakers in particular.
They might soon, given DMA. In my mind, Microsoft got dinged for antitrust decades ago and Apple has gone so beyond that line that I'm surprised Europe had to step in before the US. Even Mac OS isn't locked down this hard (helps that it started fundamentally as a BSD fork) so it just tells me this is exploiting its monopoly.
opposite argument works as well. An open world does not stop you from staying in the walled garden. If you really don't want to use anything other than the App store, that's fine. You just miss out on a few apps like you have for 16 years with Android stuff that Apple banned.
Does Apple's refusal to allow apps to tell users about lower prices elsewhere make this claim more likely to be true or less likely to be true? If this is a free choice that consumers are making, why does Apple need to hide it from them?
I'm reminded of the same arguments that Facebook made about privacy before Apple (very much to their credit) made opt-outs a requirement for apps. And it turned out that lots of users did care about privacy when they were able to make an informed choice about it. Facebook's arguments ended up being mostly crap. Users, when educated and when given valid options, stopped making the choice that Facebook wanted them to make.
But now Apple has flipped over to Facebook's line of reasoning and is arguing the opposite.
I think your argument would have more weight if Apple didn't consistently demonstrate aggression and fear over their users being informed about the effects of app store fees. In this case, the vast majority of Patreon subscriptions for most users are going to become 30% more expensive. Apple appears to have an incredibly high vested interest in it not being explained to them why that happened.
That doesn't sound to me like Apple itself is confident that users value their app store enough to pay that fee willingly.
In many markets, Apple does let a dev link users to external payments options.
But the dev agreed to basically pay Apple an origination fee to publish an iOS app in their store. They require a dev to track purchases made on that external system and pay a (slightly reduced) fee. You agreed to be audited to make sure you are making the proper payments. You may have to pay Apple a cut in more scenarios since the payment system is no longer cleanly isolated.
In-app purchasing is not an expensive credit card processor. It is Apple’s simplest method of collecting their contractually obligated royalties.
So this link is not cheaper if you are following your contract. It is cheaper to buy on your site when those users aren’t coming from the app.
Note that it can still be worth a dev using an external payments options system for other reasons - it is just that a lot of them are dark patterns. Things like variable rates for different people for dating services, no-consent charging for gambling apps, gathering additional tracking information so you have additional ways to monetize the user, making unsubscribing from a service more difficult than Apple makes it, etc.
This is its own can of worms, but doesn't really change much about what I said above.
That might be exactly your point though? That Apple has multiple tools to leverage to make sure that it's impossible to compete with their payment processor if you're building an app? Sometimes I misjudge the intent of a comment.
Apple's restrictions on origination in places like the EU reinforce that Apple does not see these price increases as a tradeoff for quality that customers are willingly going along with, and does believe that if customers were able to be informed about alternative payment methods that already exist that are cheaper, they would take them. In instances where it can't hide alternatives from users, it imposes fees at the point where users are informed about those alternatives: fees that make it impossible for alternatives to be cheaper than Apple's own inflated cost.
Apple's origination fees are a lot less about compensation and a lot more about making sure that on iOS, a less expensive payment option will never be offered. This is not the action of a company that believe that it is adding value to the purchasing experience, it is the action of a company that believes that its purchasing systems would not be chosen by many customers if they were fairly stacked up against existing alternatives.
This is kind of the crux of the matter to me. Apple, in this instance, is basically a credit card with a 30% transaction fee, and it's using its dominance in the mobile phone market to force everyone who uses their phone (via their app store policies) to use their credit cards instead of ones with 3% transaction fees, which is pretty classic behavior outlawed by antitrust legislation.
You can't really argue that it's a fair choice when Apple does everything in their power to make going outside their walls a worse experience.
Case in point, they hobble WebKit, but also forbid any alternative to WebKit. Are users choosing WebKit? Nope.
they are both rent seeking middle-men who abuse network effect, its just one has more power than another.
This gets brought up a lot in conversations about Apple.
In one sense, I agree with it. Patreon is a rent-seeking middleman who abuses network effects. 100%.
But the creators on Patreon who's income are going to be most affected by this don't care about which side of the debate is more likeable to you, and I'm kind of sick of pretending that policies that affect a huge swath of people (often people with limited options, virtually no power, and few backup resources) can be treated like popularity contests.
The video essayists, programmers, artists, authors, and indies doing weird, wonderful work supported through Patreon get their revenue squeezed even tighter, being forced to either bleed revenue or subscribers due to new fees, being forced to abandon revenue models and subscription models that Apple doesn't like.. and, I mean, honestly, "I hate both companies" just is not a valid or acceptable response to that situation.
The solution to rent-seeking middlemen is not to make more of them.
I am wondering why Apple and Patreon even a thing in this market. Most of the content is distributed through Youtube, so Google can just step in, create patreon interface and cut both of them, get some extra revenue, and be a good guy.
Youtube already has this through channel membership subscriptions [1]. Billing is through web only.
[1] https://www.youtube.com/intl/en_uk/join/
Because not everything is distributed on YouTube. I support writers and artists on patreon. That's the bulk of what I support. Even if we say Google, youtube creators already complain about youtube and how it squeezes them so is it really better? Youtube even has a patreon like thing, but creators prefer to diversify the platforms they are on. Especially if, as is common, what they are selling on patreon are things that aren't allowed on youtube.
:shrug: It would be nice to have alternatives, like you say, it's not like Patreon is particularly good at this. I understand that payment processing is kind of hellish to deal with, but that wouldn't be a barrier to a company the size of Apple/Google.
Internet payments/subscription platforms are in desperate need of more competition, even partial competition.
I thought for a while that Youtube was experimenting with paid subscribers? But it's possible that I misunderstood or that Google just got bored and abandoned it.
I am curious, do you think there is an ethical way to be a middleman like this? Would making some one-time fee of maybe $1000 be more or less limiting to potential content creators on Patreon? Would a subscription to keep the Patreon page up be better?
Ultimately, Patreon isn't fundamentally doing something that even a non-tech user can't whip up for their own website. May need to resort to a payment processor (another middleman) to get donations going, but it's possible. I can take my ball home.
Current factors on IOS make it impossible to do the same on IOS, even post DMA they want to rent-seek outside of the App Store. I think that's what makes IOS worse in my eyes.
I think ethics is not applicable here. Corps are for profit enterprises, and seek every chance to bring gain to shareholders.
Regulators goal is to support competitive market and healthy business environment, they totally can go after monopolists who abuse network effect and/or put limit on rent amount (say 5-15% from transaction) to support value creators.
Sure, but the act of charging money for a service isn't inherently unethical. I just want to know where and what lines you draw.
They could, but I'm not optimistic. I think many regulators are out of touch and don't realize how much upkeep digital commerce is saying. They see 30%, assossiate it to the days of brick and mortar which charged much more than that and say "well that's reasonable, Apple needs the money". All while ignoring the different landscape of how much people need to survive these days and how utterly hand over fist the middleman make.
There's just not a lot of empathy these days, and if all these Apple/Google lawsuits as is hasn't changed much, we need that empathy to make change.
Kind of like how realtors make more money on a house transaction than the closing attorneys who draw up all the paperwork and execute it legally.
Or, I would argue, like if a realtor made more money off of the sale than the person selling the house made.
that is easily true. You buy a house for $500k. A year later, you decide to move. The house's value remains at $500k. Realtor commissions of 6% cost you $30k. You lost $30k on the total transaction, the realtor made $30k (not including the original buy).
Only on HN would I see someone argue that depreciating or stagnant assets are the same thing as a 30% transaction fee. This community is smart enough to be able to tell the difference between a tax on revenue and a tax on profit.
Apple is imposing a tax on revenue that is higher than the revenue that Patreon pulls in from each transaction fee.
There is no equivalent situation in a realtor market. In no world would a realtor sell your house for $500k and then tell you that they deserve a higher cut of the revenue than you do.
Surely the realtor shouldn't work for $0 just because your investment didn't pan out, though?
I don't know if that is a good comparison. Our realtor has spent a lot of hours over the past few years showing us homes and writing up more than a few losing bids. It's not constant attention, but so far it's all unpaid.
One is necessary to have a legal transaction, while the other is rent-seeking. People buy cars all the time without agents. We have excellent websites to educate us about car features and locate cars for sale. Realtors keep their racket going by working with each other to get houses sold, while ignoring FSBO homes. In fact, buyer's agents have a conflict of interest in that they get paid more if you pay more for the house. How people accept this befuddles me.
I’ve never had a realtor suggest an offer price or apply the slightest bit of pressure to offer more. Maybe you should find a new realtor.
I don't like this action form Apple, but I don't agree with your assessment of market economics here.
The problem with "fairness" is that there is no objective measure of it. Everybody evaluates fairness according to how it aligns with their own personal interests.
This is one of the key problems a free market economy solves. Price discovery is the intersection of what somebody's willing to sell something for, and what somebody else is willing to pay for it. Both of these parties will have a completely different idea of what's fair. That's why fairness is not a valid price discovery mechanism, and I don't think any free market economist has ever advocated for it.
Would this view conclude that there should never be regulation of any sort? Or is there possibly a level of “fairness” that’s evident to the average person?
Regulation is itself neither objective nor fair. Additionally, regulation is not immune from market pressures as the legal environments and incentives they create are also subject to competition. No nation-state has a monopoly on hospitable business environments.
Fairness at its most objective is merely a process. It's not and should not be proselytized as a guarantee of equal outcomes irrespective of circumstances.
The "average person" does not exist and thus doesn't have an opinion representative of an arbitrary individual or group of individuals. A rational flesh-and-blood person can only speak for himself.
so basically, you don't care about moral fairness and are fine letting monopolies rule markets and societies. The extreme side of "equal opportunity".
I won't make a moral argument here, but merely a logistical one: country governments have a lot of incentive to not let this happen. For the sake of technological progress, for the sake of ensuring the non-upper class economy (aka, taxable income that won't play Matrix with them in terms of evasion) is healthy enough, and for the sake of minimizing risks of a hostile takeover (be it from the monopoly or foreign powers).
So a truly "free market" only works in a vacuum with benevolant dictators and a united world government. That may take a while.
hence why we have multiple fields dedicated to approximating such a person. Because averages are still valuable for many things. From government policy, to targeted marketing, to identifying societal biases.
I don't think the parent comment's main point was about using fairness to judge anything - the two main good I questions I got from it are (a) does Apple provide more utility in hosting the apps than the entire Patreon service? and (b) if not, doesn't the fact that it costs more show that something, somewhere is very wrong with the economic model?
I'm a mild advocate of the Apple ecosystem in that I really like the fact it all works together pretty flawlessly for me, with many security headaches taken off my plate. (I'm always reminded of this when every ten years or so I think about trying to save money with a Windows laptop and come running back). But I think the parent comment's suggestion that this isn't about fairness as such, but whether that kind of arrangement is egregiously wrong hits home, and it does make me feel that this is the kind of weird economics that can only come from an unhealthy duopoly of iOS and Android.
What to do about it? I'm not sure the parent or I have any particularly good answers...
This is extremely well phrased.
I will say, I do have opinions about what to do ;) But parent comment is right that I'm not trying to advocate for those opinions above, someone might completely disagree with me about how to respond to the situation, and that's fine.
I'm more just pointing to the situation and saying, "this seems really weird, right? This is not the outcome that any of us would expect or want. Maybe you disagree with me about how to solve this, but this does seem like something we should try to solve."
With respect, this sounds a little bit like you're agreeing with me?
Another way of phrasing "fairness is not a valid price discovery mechanism" might be to say that fairness as a concept "doesn't exist" in the market, only competition: ie, what people are willing to pay to acquire a service from the available options they have before them, ideally within an environment where low barrier-of-entry to the market allows prices to fall if a service can be legitimately offered cheaper elsewhere, and where regulation sets the (occasional) market cap on how exploitative businesses are able to be. Fairness as a concept is not applicable to market prices: they don't get set because they are "fair", they get set because businesses calculate the maximum amount that people are willing to pay for products before going to a competitor (assuming there is a competitor to go to).
BUT, if people on HN insist on bringing fairness into discussions about anti-competitive behavior (which very often happens in discussions about the app-store), I think that Apple's fees in this case, and the impacts they will have on small-market creators, are unlikely to line up with most people's personal evaluation of "fair".
A sibling comment phrased this in a really good way, I think this is a situation where regardless of how you feel about fairness, you can look at the market outcome and think, "wait a second, something is not right here."
This is one of the key problems a competitive free market economy solves. The distinction is particularly relevant in this case.
For people who would never give Patreon money by going to Patreon’s website? Sure, why not? That sounds like a niche market that Patreon would be completely unable to participate in without Apple’s help.
Sounds like a fun experiment. I'd be interested in Apple allowing Patreon to test that theory by disabling purchases within the app. Is this really about access to a niche user group of users who would never sign up elsewhere?
Apple seems to be very invested in forcing Patreon to either not be in the app store at all (and given the limitations of web apps, this is a significant penalty), or offer exclusively Apple payments in the app. Then Apple goes a step further with rules blocking Patreon showing links to other purchase methods in the app. These are not the actions of a company that believes that its users can be trusted not to make a purchase elsewhere.
If these users would never give Patreon money by going to Patreon's website, Apple wouldn't be scared of a link to the website payment options inside of the app. But they are scared of that, because they know that many of their users would choose to pay less online if they were informed about the choice or if Patreon decided not to offer payment options in the app.
I think the fact that Apple is (according to Patreon) not offering a choice of whether or not to accept payments in the app pokes a lot of holes in the idea that iOS users would never use a website to subscribe.
Well yeah, the charitable interpretation is that of course Apple thinks their users will have a worse experience on average with subscriptions outside Apple’s ecosystem than inside of it. And it’s hard to disagree!
So... they would give Patreon money by going to their website?
Is this a niche market that would never have been available to Patreon that Apple is helping Patreon access, or is this Apple needing to en-mass protect its users from themselves as a result of them being too.. I don't know, weak willed(?) not to pay for Patreon using another method?
It's not both.
Well, for a popular and somewhat mainstream service like Patreon, it likely would be both.
Patreon likely gets some users who first discover Patreon via the iOS app and who would never go to the Patreon website but who would be comfortable making an iOS in-app purchase.
And Patreon also likely gets some users who first discover Patreon via the iOS app and would be comfortable going to the Patreon website to subscribe if the iOS app didn't have in-app purchases.
I was referring to that first group, which I suspect is a small portion of Patreon's total userbase, but I suspect it's a niche that Patreon is very interested in (both because Patreon can't engage them through any other channel, and because they probably have above-average discretionary spending).
The whole "protecting users from themselves" thing is just a very tired argument. You might as well say that an operating system implementing memory protection is "protecting users from themselves." Or a software vendor offering security updates is "protecting users from themselves."
Does it? It seems like they are enforcing their developer agreement as written, and likely have been advised they need to enforce it uniformly due to regulatory scrutiny. I believe Google hit this in India where it was ruled they could not start collecting their royalty after several years of non-enforcement across certain categories as it amounted to a bait-and-switch.
I'm not certain what the category difference is between Patreon subscriptions and Youtube/Amazon/Spotify subscriptions, all of which don't allow payment through the app.
This is actually something I would really genuinely love Apple to clarify because Patreon's statements on it are surprising; why is Patreon not allowed to stop offering payment options at all in the app. Are they lying about that? Why wouldn't they be allowed to turn it off when other companies clearly are?
That being said: if their policy as written has these terms in it, then that doesn't make me feel better about Apple. I would still question why Apple is so scared of consumers being notified about payment options across the board.
An abusive policy designed to give customers less information about their purchases is still abusive even if it's applied uniformly. It still speaks a lot to Apple's priorities and about whether they are genuine when they say that they believe customers prefer their pricing schemes. You don't have to hide things from customers that they prefer.
Not all parties to a transaction provide value to everyone in a transaction. A union, lawyer, real estate agent, etc is optimizing value for one party but not both. As long as one side of a transaction has a monopoly you can end up with “middlemen” favoring the side that picks them, thus why Ticketmaster still exists.
Patroon is chosen by content creators not customers as such its goal is creating value for content creators not customers. As a customer it’s providing negative value with their policies to immediately cancel service the instant someone unsubscribes rather than letting the month play out etc. Thus why their website can be so unbelievably terrible for customers and yet they stay in business. So for customers Apple/Google/whatever may provide literally infinite more value not because it’s significant but because they are on their side.
Does Apple's change do anything at all to help alleviate any of the concerns you have?
You have fewer subscriptions options for creators (1st-of-month billing and per-release billing is going away, despite the fact that creators regularly use them to simplify the experience for subscribers). You're going to pay more (I promise you, creators on Patreon are not rich enough to swallow a 30% transaction fee on iOS subscriptions). You're going to use the same app that you were using before. And this will change nothing about when Patreon cuts off service when you unsubscribe (incidentally, I'm pretty sure this is a creator decision and creators can choose to extend benefits to the end of the month).
What is Apple doing that is making any of this better for you?
Maybe you sort-of marginally have an easier time unsubscribing? But it's not hard to unsubscribe from a Patreon tier, and it's difficult to argue that Apple is providing infinite value by organizing your subscriptions into a list.
What are you actually paying this fee to Apple for? They're "on your side" except in the sense where them being on your side creates any tangible or significant change in your experience using Patreon. Seriously, what about the iOS experience using Patreon is better (or even different) than the experience elsewhere?
Not infinite value, just any value versus 0 value. IE: infinitely times 0 is less than 0.0000001%. So the same relationship is true if you’re using Firefox to access Patron.
Apple charging fees is definitely a reason to drop Apple, but you personally can’t force creators to drop Patron which is why they can be so toxic.
I'm not a fan of Patreon by any means, but it seems pretty silly to me to argue that Patreon offers literally zero value to consumers. Patreon's interface is still better than using Paypal to subscribe to a creator. Patreon still offers me as a user a modicum of privacy, I don't have to give my billing address to every creator that I support.
You don't have to like the platform, but zero value? Do you really believe that?
I also want to push back on this a little bit. I know creators on Patreon, and most of them don't like the platform. You know why they use Patreon? Because it's the only place anybody goes to subscribe to content. If you set up a Ko-Fi account as a creator, you will receive a fraction of the subscriber-base that you'll receive on Patreon.
I'm not saying this to say that Patreon is somehow justified in its abusive behavior, but it's kinda silly to argue that the only reason Patreon is popular is because creators prefer it. Subscriber preferences play a huge role in this, and the fact is that most subscribers refuse to use alternatives.
If creators felt confident that they could move to platforms like Ko-Fi, Gumroad, Subscribestar, Librepay, etc without permanently losing all of their subscribers, they would. They'd leave in a heartbeat. Fewer fees, better websites, less VC-weirdness: creators don't really like Patreon. And many of would be able to move if it was worth their while; Patreon doesn't (as far as I know) have any restrictions on joining parallel donation platforms. But every time I've seen a creator do that, the majority of their revenue continues to come through Patreon. Subscribers refuse to leave the platform even when other options are being advertised to them.
There is a little bit of a chicken-and-egg problem in that some creators end up only using Patreon because it's the only platform that brings in enough revenue to make it worth their while, which in turn means it's the only place to subscribe to them -- and yes, that can help reinforce network effects as well. But the biggest thing keeping creators on Patreon is consumers themselves.
If you want creators to leave Patreon, you do actually have at least a small amount of agency over that: find the creators you follow that are on multiple subscription platforms, and subscribe to them on those alternative platforms. By and large, most consumers are not willing to do that.
Value is the net worth of something. I judge it as negative because IMO if it didn’t exist we’d be better off which isn’t to say it has zero positives just that the negatives outweigh the positives.
Your free to disagree, but I think it’s a reasonable argument.
Sure, I suppose.
I do want to re-state that if the majority of Patreon users (not creators but users, subscribers) agreed with you, Patreon already wouldn't exist. There is no conspiracy among creators to keep the platform afloat, they are constantly criticizing it. There are alternatives. Many of the alternatives have their own problems; the actual competitive coverage in this space is very low. But the biggest problem that all of them have is that they have a fraction of the userbase that Patreon has.
I'm not accusing anyone of anything, as far as I know you already use alternate services and you already support creators directly through other means. This is not an accusation against you, it is a general encouragement to everyone who dislikes Patreon, to please very literally put their money where their mouth is and go subscribe to creators on other platforms.
is this recent? I definitely remember my service playing out the month when I cancel subs. Because for most subscriptions period I cancel the moment I subscribe.
I think the caveat here is that you are charged on the first, no matter when you sub. Be it on the 2nd or the 28th. But generally I can still access that month's rewards, so it's still not as bad as it could be.
One important feature is that in the Apple store the consumer is sure that the unsubscribe button works immediately. Not weird tricks to keep you subscribed forever.
This should be a federal law, and if such button does not exist than a email or letter should be a legally mandated fallback.
Taking money after cancellation should be treated as thert
Not to be political, but what a timely comment: https://abc3340.com/news/nation-world/new-biden-administrati...
I'm in Argentina, I think I subscribed to some app from Spain. I'm not sure if a federal law is enough.
I hate when companies try to draw out or sidestep attempts to unsubscribe, it's a huge issue with subscription services. I'm really encouraged about recent pushes to ban this kind of behavior.
That being said, I've just checked and Patreon does not appear to block or sidestep attempts to unsubscribe from a creator. It's two clicks, you hit "cancel membership" and then the confirm button.
I'm open to claims that Apple's system might still be marginally more convenient (you do have to go to the actual creator page in order to unsubscribe, which is a little inconvenient, I guess).
But is it so much more convenient that most users would literally pay 30% extra on every one of their subscriptions in order to use it? And even if it is, isn't that something that users should be able to choose as an educated decision instead of it being Apple policy for Patreon to not be allowed to tell users in the app that other payment methods exist?
This of course makes sense, because Patreon's incentives are the same as Apple's here: they don't want to trick you into paying more for one subscription, because they want you to be confident to subscribe to other creators on their site.
Unfortunately this is in the nature of suppliers and retailers.
Supermarkets make more profit on a litre of milk than farmers. Way way way more. Because they know farmers in practice have to sell _all_ their milk, not just some of it.
And what Apple really has, and knows it, is the only supermarket on the main road out of iBorough. And there are no corner shops.
Often milk is a 'loss leader' for supermarkets. They put it as far away from the entrance as possible so you have to walk through the whole store.
Is this really true? Maybe it just makes sense to put high demand refrigerated products in the refrigerated room near the loading dock where the refrigerated trailer is unloaded?
Yeah, I hear people repeat that a lot, but it doesn't entirely align with my experience. A lot of the grocery stores I shop at (mostly Kroger and other national chains,) have a cooler right up front with the most popular dairy/refrigerated items for the people that are just there to pick those up.
All the Krogers I've been to have had the dairy opposite the entrance.
Milk is not a loss leader: they aren’t losing money on it to get you to spend elsewhere.
It’s profitable for supermarkets.
(They definitely do manipulate milk prices to get consumers to shop with them rather than competitors, and sometimes they artificially lower the prices. But they don’t ever do this at their own expense. They do it by forcing farmers to supply below the true cost of production. Because dairy farmers can’t just sell some of their milk. Essentially as soon as a dairy farmer can’t get a buyer for the totality of their product they are out of business. It’s remarkably precarious. So most are pressured into selling below cost for long periods of time.)
Supermarkets might be using it to get customers deeper into the store but milk is also heavy, awkward, refrigerated, and shorter shelf life, which means they are always going to put it closest to the back of the store.
Let's take this to an extreme. Imagine an app that does little except thread together the basic UI components provided by iOS. In other words, something that most people here could write in an afternoon. Now imagine it ends up on the Apple marketplace. Given how much work goes into building iOS, the UX, and the app store, by your argument Apple should get 99.9% of the fees. The person who created the app just spent a few hours and Apple spent bazillions of hours (amortized over many apps).
But the app ecosystem is also a selling point for users to actually buy an iPhone, on which they already make a huge margin compared to the rest of the industry.
No, by my argument, even if someone believes that Apple is somehow morally entitled to a specific level of compensation for running the app store, it is absurd to argue that the amount of work they're putting into making specifically the Patreon app available is higher than the amount of work that was put into building Patreon.
If you want to argue that they're not morally entitled to a certain percentage of revenue, great! Then let's talk unemotionally about antitrust, customer steering, and effective market competition without falling into the trap of worrying about whether or not Apple is getting "bullied" by that discussion.
The trap that people fall into so often when talking about Apple is trying to set this up like there's a hero and a villain, like people looking at the market are somehow trying to bully Apple out of something it justly deserves. But come on; when you see market effects like this it becomes so much more obvious that if there is any bully here, it's Apple.
"You can't reasonably expect Apple to-" Nah, this market outcome is bad. This is not the outcome that most of us want from an app store market. We should do things to make that market more competitive and to curb anti-competitive app-store policies.
I wonder how much of the software you're proposing Apple get paid 99.9% for is open source? (Including the xkcd-famous "one guy in Nebraska" who's been doing his thing for over 20 years)?
How much do all the contributors of these projects get paid?
https://opensource.apple.com/projects/
And all the stuff not listed there too, like OpenSSH, curl, all those little things that pretty much _every_ OS uses?
And the predecessors? BSD, Mach, FreeBSD...
This isn't a Creators/Patreon/Apple phenomenon, this is a consumers/distributors/(publishers|labels)/creators phenomenon.
See page 12:
https://articles.unesco.org/creativity/sites/default/files/m...
"Apple isn't being doing anything bad, they're just like the music industry" is a heck of an argument to make. Do you think the average person would argue that the music industry isn't exploitative?
I didn't make that argument.
Fair enough, we might be aggressively agreeing with each other. Apologies if I misunderstood you.
I agree that Apple should be pressured to allow alternative modes of payment and/or lower fees in more cases. The duopoly problem you talk about is a real and serious issue.
But on this point:
This is a huge misunderstanding about what these fees are actually for. I remember a time when major operating system updates cost a fair bit of money. The kind of free significant feature updates we see for phones these days were almost completely unheard of both in the PC and the phone market.
Apple now provides fairly significant feature updates for phones/tablets, going back many years. The App Store business model is what incentivizes this development. Doesn't matter if you don't buy a new phone.. they still make a fair bit of money on you when you use the App Store.
The App Store fees are not to cover hosting/review. It's a way to get a continuous revenue stream from the users of their hardware/software. There is only one realistic alternative to this business model: to use more advertising to extract value out of your users.. which is the path Microsoft and Google seems to be heading in. Neither is ideal. But IMO it's good that there are at least two options with different approaches to this, so we have a bit of choice.
A third alternative would be going back to paying for major OS updates. But I don't think that business model is viable anymore. People expect free updates.
I don't know why you are getting downvoted except that your opinion is unpopular in this thread. It's a legit counterargument though. However, speaking for myself as an N of 1, the reason I buy an iPhone is because of the assurance that it will receive updates -- especially security updates -- for several years. Android doesn't seem to hold that promise.
My last Android phone was an HTC that came out with this promise of delivering Android updates within 15 days -- a promise they did not keep. https://www.engadget.com/2016-08-25-htc-one-a9-android-updat...
Currently the majority of Apple's Safari revenue comes from Google search deals.
Do you believe that if Apple got rid of those deals, it would be justified in applying similar restrictions in Safari to support development of the browser? What incentivizes them to build a functioning browser? Is it feasible to have an Open web while incentivizing the massive amount of work required to build browsers and web APIs?
And if so, what is different about native APIs?
Only people who have zero understanding of the value of distribution in business would write this. Apple provides tremendous value to app developers.
If we were having this conversation in the late 1800s I'm pretty sure that you would be arguing to me right now that the trans-continental railroad provides "tremendous value" to shippers.
It's become an increasingly common argument in discussions about Apple to phrase their value as one of "distribution", or sometimes less subtly as "access." But no one would ever credibly argue that the actual physical distribution costs, hosting, and bandwidth of the Patreon app is more valuable than the entire platform itself. That would be absurd. Instead, what people actually argue is that access to Apple users is the value that Apple quote-unquote "creates"[0].
I think a lot of people look at this and see it for what it is: rent seeking. But it's a marvel of the modern tech landscape that we've trained so many people to not only accept that they are the product for the platforms they use, but taught them to be proud of being a product. We've gotten people to come around to the idea that companies have done such a good job turning them into a product that the companies now somehow deserve some kind of special reward for doing so.
Excessive use of customers as bargaining chips inevitably creates bad incentives for companies, which become increasingly defensive of their "assets" and increasingly more and more hostile to consumer choice and freedom to move from ecosystem to ecosystem. These negative effects play out again and again in multiple industries both inside and outside of tech, to the detriment of both consumers and the overall markets. But when tech companies come up (whether we're talking about Apple, or Steam, or Nintendo, or whatever) -- for some weird reason people suddenly become very defensive about the rights of companies to treat them like cattle.
TLDR, no, access to iPhone users is not Apple providing value to app developers. It's just rent seeking.
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[0]: As if iPhone users would somehow stop using smartphones now if the iPhone went away.
John D. Rockefeller argued against Standard Oil being broke up on the grounds that it only was so big because it is just that efficient and innovative.
It also kept the price of kerosene low for the consumer.
If it was broke up it would also hurt the economy overall. They also argued it wasn't really a monopoly and they have other competition lol.
Tech companies are such a brilliant monopoly they get the consumer to mindlessly puppet Rockefeller's exact points for them.
I would probably sooner point out that by far the most money Apple makes off of their platform (and you don’t even have to look this up or have inside knowledge to know it is true) is from a TON of addicts gambling on gacha boxes in pointless video games. They are incentivized by predatory behavior.
Edit: seriously, even the casinos and bars will eventually tell you you’re done.
It wasn't surprising, but having hard facts always helps. Apple v. Epic revealed Apple makes 70% of app store revenue from mobile games, which is generated by less than 10% of app store users:
https://www.cnbc.com/2021/09/10/apple-vs-epic-70percent-of-a...
The market exists through legal means, which also include mechanisms for fair competition.
More for creating the OS, releasing updates for free to all users, and licensing new and existing developer APIs for free to all iOS developers in perpetuity.
In lieu of their app store fee you get Unreal Engine-style licensing anyways where a percentage of your revenue becomes subject to royalties.
As a small b2c low cost subscription app provider I was initially taken back by the fees of the app/play stores.
However, after looking at the competitive international payment processing and tax management solutions available, the fees started to make a lot more sense. Just the fact that there's no transaction fee on top of the percentage they take makes charging a low monthly fee much more competitive. Once you add in not having to think at all about how much tax to charge in each local, how to report on it, etc, the cost side became much more reasonable.
And the reduced friction and trust concerns for users when they know it's apple managing their financial data instead of a small business is pretty significant as well as others have pointed out.
Would I like to be charged less for all these benefits? OF COURSE. Is the service they provide to smaller businesses with under $1mil in annual revenue a decent ROI? I think it probably is.
The first part is undoubtedly true, but competition doesn't exist here either. That Apple is getting away with their anti-competitive practices is a full-blown scandal.
I agree with you that the reality of markets is quite different to the "common sense" model. Unfortunately I rarely find either in the press or just talking to people myself, that anyone gets beyond this kind of price=cost(1+a little incentive) thinking.