The existence of alternatives does not give companies the right to engage in “anticompetitive behavior”, “unfairly” restrict competition, etc.
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Apple Faces £1.5 Billion UK Lawsuit Over App Store 'Overcharging'
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The existence of alternatives does not give companies the right to engage in “anticompetitive behavior”, “unfairly” restrict competition, etc.
Maybe they can get a discount like when you’re a frequent flyer.
Although I’m sure Timmy has already looked into this 😂
Outside of the law the EU created just for Apple, it isn’t anticompetitive or illegal to have a closed platform you charge access to.
you need to pay the dev fee and buy the hardware from apple.
Why should apple get 30% of your in app stuff that is hosted on your hardware?
Why should apple get 30% of an netflix sub is apple hosting the content? is apple makeing the content? Wait apple has there own video content that is not having an 30% cut taken out of the sub cost.
food delivery apps don't have to give apple an 30% cut. And is apple paying the drivers? Running the restaurants? Hosting the app backends?
Well if you're paying 45-47% in taxes then the healthcare isn't really free is it? I'd rather keep my money and buy the health insurance I prefer, rather than what the government forces on me, but YMMV.
Do you know the devs pay Sony, Mirocosoft and Nintendo the same fee no matter where their game is sold, doesn't matter it is sold at Game Stop or on console store.
Devs pay the fees, consumers buy the hardware.
The 15%-30% pays to for all the infrastructure and other tools it takes to give devs ability create apps and sell apps.
Subs and pass through apps are a different animal.
Apparently not in the UK when your company name is Apple. Every other proprietary store? Oh, those are just fine.
Such absolute bollocks! as an app developer (now retired) I always thought 30% was a bargain for global app distribution and a global payment gateway.
Apple is heading to court in London on Monday to defend against a class-action lawsuit seeking £1.5 billion ($1.9 billion) in damages over alleged anti-competitive App Store practices in the UK.
Filed by King's College London academic Dr. Rachael Kent, the lawsuit claims Apple has violated UK and European competition laws by requiring iOS users to download apps exclusively through the App Store while charging developers a commission of up to 30% on purchases.
The legal action represents around 19.6 million UK iPhone and iPad users who may have been overcharged for apps and in-app purchases between October 2015 and November 2024. Under UK law, affected users are automatically included in the claim unless they opt out.
Kent argues that while the App Store was initially "a brilliant gateway" for services, it has become "the only gateway" for millions of consumers, with Apple acting as a monopolist by blocking access to alternative platforms that could offer better deals.
Apple has firmly rejected the allegations, calling the lawsuit "meritless," and says that its App Store commission rates are "very much in the mainstream" compared to other digital marketplaces. The company says that 85% of apps on the App Store are free, and many developers qualify for a reduced 15% commission rate.
The trial at the Competition Appeal Tribunal is expected to last seven weeks and is one of several legal challenges Apple faces globally regarding its App Store practices.
The company is also defending against a separate £785 million UK lawsuit related to developer fees and was recently fined €500 million ($538 million) by the European Commission for breaching digital competition rules relating to music streaming services.
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Article Link: Apple Faces £1.5 Billion UK Lawsuit Over App Store 'Overcharging'
Apple complies with China’s demands because China’s demands place no restrictions on what Apple does with the App Store. If people desire to buy iPhones and, with those phones, then purchase apps from the Apple App Store, China doesn’t care. That’s mainly because China doesn’t wholly depend on US companies for their tech infrastructure. The EU and UK literally have nowhere to turn, US companies MUST be a part of their tech future, but they want to make more money from the work that they haven’t been a part of.
The EU can’t even innovate their way into producing a smartphone with app store to compete because their regulations literally forbid a world class tech company from existing in the region.
That’s because you’ve been raised in a highly individualistic society.
In the UK we’re for the most part very proud of the NHS because even though it’s not perfect we like the idea that no one is left behind. Doesn’t matter how rich or poor you are, if something goes wrong you’re guaranteed to get the some of the best treatment available. We like to look out for each other.
The government doesn’t impose that on us by the way, if anything it’s the other way around - if a political party ran on a promise to abolish the NHS and adopt a US style model they’d be lucky to win a single seat. The NHS is very popular right across the political spectrum.
Upshot of having a nationalised healthcare system is that we pay less than half as much per head as the US for on average better outcomes (look it up). So sure of course it’s not free, but no one here will ever have to worry about refusal of treatment or bankruptcy when they fall ill.
Coming back on topic, this is why we like to see big multinational companies pay their fair share of tax on their profits made here - and there’s been an awful lot of tax dodging in recent years, particularly from big tech. Hence no one in the UK will bat an eyelid at a threat to fine Apple for uncompetitive behaviour.
It is, the EU and the UK are both in dire straits having made decisions that blew a hole in their budgets and they have nowhere in those regions to find any new revenues. They are grasping at straws that they hope will bring them fortunes, but the same region that’s unable to develop a phone, a phone’s OS, or any popular consumer level tech aren’t going to be able to develop a successful app store of any usefulness. It’s just not in their DNA.
I see the concept of capitalism slipping further and further in Europe as they turn to socialism to create new businesses (for free) on the back of American tech.
Or perhaps they’re sick and tired of having money sucked out of their economies by tax dodging big tech and they’re finally doing something about it 🙂
Depends where you stand I guess. However if big tech don’t want to play by the local rules in these regions perhaps they should cease treading there and stick to the places that let them do whatever they like.
Probably not. The alternative app stores can charge less. Of course, when you are freeloading…Well said! Thanks for the reply.
I just though of another scenario and outcome:
If Apple is forced to allow alternative app stores in more countries... Apple will decide to reduce their commission fees to compete.
Then maybe a developer won't need to put their apps in alternative app stores.
15% or 30% always seemed a little high...
So these governments are concerned that a company that sells life style discretionary products is charging too much
I agree. Pull out leave them with “android”.
That is completely untrue - prices for physical media are frequently cheaper that the digital stores, especially with retailers falling over each other to have the cheapest price. The difference is in the amount going to the developer, and the profits extending to businesses outside of the console manufacturers.
The point is that they’re never gonna pull out as they’d lose a huge chunk of their market and a tonne of share value. That huge chunk of market would quickly move on to something else (discretionary products) and likely never look back (phone tech plateaued years ago).
End of the day this all comes down to tax dodging and off shoring of profits. It’s sucking money out of these economies. Can’t go on forever, so either they pay more of their fair share or they leave.
They won’t leave.
Chances are they’ll grease the right palms and this’ll all get watered down.