Apple Faces £1.5 Billion UK Lawsuit Over App Store 'Overcharging'

[webkit]

Again, where is my Nintendo store on my Xbox

Again, the issue is that Apple hasn't allowed any iOS app store alternatives (outside the EU) while there have been alternative places for buying Sony, Microsoft and Nintendo games.

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.

They didn't "create it" just for Apple. All gatekeepers have to follow DMA laws. In the critical mobile OS market, that includes Android and iOS and potentially others who choose to enter. Just because Apple may have been the worst "offender" regarding restricting app store competition/choice for developers and consumers doesn't mean laws were made for or only apply to them. Google/Android, for example, also had to make adjustments.

If Apple allowed alternative app store competition for iOS as they do for macOS, they wouldn't be facing these types of issues. Issues that took too long to start to be addressed.

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.

It can matter as far as overall selling costs as commissions paid can vary depending on where a game is sold.

 

[I7guy]

It looks like all they do at Apple these days is going to court. 🤣🤣🤣

All while pulling the gdp of a medium country. Go figure.

 

[Naraxus]

All gatekeepers have to follow DMA laws.

Daniel Ek would like a word with you......

 

[Big_D]

Where's the proof of "better deals"? Desktop and console software has always been more expensive than mobile. And I've never seen anyone provide evidence that Android generally provided lower prices on apps than iOS/iPadOS.

Google followed Apple's lead, so that is why there is no price differential.

Better deals? All it takes is a third party store on iOS offering a vig of 5% or 10% and that would be a better deal...

 

[mrochester]

Google followed Apple's lead, so that is why there is no price differential.

Better deals? All it takes is a third party store on iOS offering a vig of 5% or 10% and that would be a better deal...

If the customers aren’t at that store though…and would those percentages even be profitable?

 

[Big_D]

If the customers aren’t at that store though…and would those percentages even be profitable?

That is the question... Could Apple still make a decent profit at 10%? Very probably. Will users flock to another store, if it offers a smaller vig? Possibly, but many prefer the convenience of being ripped off over having to put in the effort to get a good deal. If the users come, would it be profitable? Probably; not as profitable as the current Apple App Store, because they wouldn't be fleecing their users, at least not as much as Apple, but it could probably still turn a decent profit.

But I suspect that not enough people would be interested enough to move to make it worthwhile, unless big name apps went over to the new store exclusively. That is unlikely to happen though, there would be too big a backlash against the apps in the current climate, because of the Apple monopoly on iOS/iPadOS (the same is true for Android and the Google Play Store).

 

[mrochester]

That is the question... Could Apple still make a decent profit at 10%? Very probably. Will users flock to another store, if it offers a smaller vig? Possibly, but many prefer the convenience of being ripped off over having to put in the effort to get a good deal. If the users come, would it be profitable? Probably; not as profitable as the current Apple App Store, because they wouldn't be fleecing their users, at least not as much as Apple, but it could probably still turn a decent profit.

But I suspect that not enough people would be interested enough to move to make it worthwhile, unless big name apps went over to the new store exclusively. That is unlikely to happen though, there would be too big a backlash against the apps in the current climate, because of the Apple monopoly on iOS/iPadOS (the same is true for Android and the Google Play Store).

Don’t forget it’s not the end user who is getting a discount by using an alternative store, it’s the app developer. End users will probably see no discount by using a 3rd party store, and more inconvenience.

The only way the end user would save money is if the app developers passes some or all of the savings onto the consumer. However, given that the plight of the app developer is that they don’t currently make enough money from the Apple App Store, don’t expect to see any apps discounted when in a 3rd party App Store. The developers want more of the money to themselves (because they are greedy, as is the current terminology used for this sort of thing).

 

[Onelifenofear]

Overcharged.... remember when applications used to cost £100-1000s and games £20-50

 

[AndiG]

Nice one. Apple needs to change its business model. Hell already freezed over since Apple is now partnering with Nvidia again - you could watch an Apple Vision in the latest Nvidia keynote.
But it is ridiculous, Apple blocked Nvidia for over a decade now, being frustrated over OpenCL, but Nvidia evolved and is now the main company when it comes to AI. Apple took a really long nap during this time, but now it is really time to wake up and realize that the world has changed.

 

[Michael Scrip]

Don’t forget it’s not the end user who is getting a discount by using an alternative store, it’s the app developer. End users will probably see no discount by using a 3rd party store, and more inconvenience.

The only way the end user would save money is if the app developers passes some or all of the savings onto the consumer. However, given that the plight of the app developer is that they don’t currently make enough money from the Apple App Store, don’t expect to see any apps discounted when in a 3rd party App Store. The developers want more of the money to themselves (because they are greedy, as is the current terminology used for this sort of thing).

Exactly.

The reason this is happening is because developers are unhappy with the 15% or 30% fee in the Apple App Store.

So let's say alternative app stores only charge a 10% fee. I can't imagine developers will put their apps in these alternative stores and then lower the price of their apps just so they can make the same money as they would in Apple's store.

Of course the developers will do what benefits them... not the consumer.

 

[Big_D]

Overcharged.... remember when applications used to cost £100-1000s and games £20-50

Having just paid out the support for our software for 2025, yes, I remember them, like it was yesterday... Oh, wait, it was yesterday! 🤣

 

[cocky jeremy]

Apparently not in the UK when your company name is Apple. Every other proprietary store? Oh, those are just fine.

Have to hold down US companies because their own are incompetent and can't compete.

 

[I7guy]

Exactly.

The reason this is happening is because developers are unhappy with the 15% or 30% fee in the Apple App Store.

So let's say alternative app stores only charge a 10% fee. I can't imagine developers will put their apps in these alternative stores and then lower the price of their apps just so they can make the same money as they would in Apple's store.

Of course the developers will do what benefits them... not the consumer.

I’m not happy with gas or food prices. I demand the govt split the power and oil companies. Oh wait….this only applies to apple.

 

[mrochester]

I’m not happy with gas or food prices. I demand the govt split the power and oil companies.

Ironically both are more essential than a smartphone and apps.

 

[surferfb]

Again, the issue is that Apple hasn't allowed any iOS app store alternatives (outside the EU) while there have been alternative places for buying Sony, Microsoft and Nintendo games.

For what it's worth, if you want a digital-only game (or DLC for physical games) on any of those consoles you have to go through the console-maker's store. In the PS5's case, they even make a "digital edition" that doesn't have a disk drive; anyone who buys that model has to use the console-maker's store exclusively. I made the choice to buy the digital edition, so I literally don't have an alternative place to buy my games.

 

[Mrkevinfinnerty]

52nd state?

We are the 51st until Canada agrees to join

 

[webkit]

I’m not happy with gas or food prices. I demand the govt split the power and oil companies. Oh wait….this only applies to apple.

This is not just about being "unhappy" with prices, it is about the lack of competition and alternatives (outside the EU) to market or buy apps/in-app products in a major segment of the mobile market due to Apple's restrictions on alternative iOS app stores. Alternatives that may provide lower costs and/or better terms, etc. No company dominates the gas or food markets the way Apple dominates the mobile OS/app store markets.

 

[webkit]

For what it's worth, if you want a digital-only game (or DLC for physical games) on any of those consoles you have to go through the console-maker's store. In the PS5's case, they even make a "digital edition" that doesn't have a disk drive; anyone who buys that model has to use the console-maker's store exclusively. I made the choice to buy the digital edition, so I literally don't have an alternative place to buy my games.

Consumers can buy digital games for PlayStation, Xbox and Nintendo devices in places other than the Sony, Microsoft or Nintendo stores.

 

[surferfb]

Consumers can buy digital games for PlayStation, Xbox and Nintendo devices in places other than the Sony, Microsoft or Nintendo stores.

Not sure what you're talking about. I literally cannot buy digital games for PlayStation anywhere other than the Playstation Store.

 

[I7guy]

This is not just about being "unhappy" with prices, it is about the lack of competition and alternatives (outside the EU) to market or buy apps/in-app products in a major segment of the mobile market due to Apple's restrictions on alternative iOS app stores.

There is a lack of competition in the power and gas markets also. Prior to the dma there wasn’t a law mandating app stores are public property.

Alternatives that may provide lower costs and/or better terms, etc.

There wasn’t any laws the forced an App Store to be public property. Especially for a lifestyle consumer discretionary product.

No company dominates the gas or food markets the way Apple dominates the mobile OS/app store markets.

Pretty much android dominates the phone market, and so I’ve been told countless times on MR. Samsung dominates the phone industry.

 

[Michael Scrip]

Consumers can buy digital games for PlayStation, Xbox and Nintendo devices in places other than the Sony, Microsoft or Nintendo stores.

But whether a game developer sells a game in 1 store or 10 stores... the game developer must pay a fee to the platform owner. Every time.

Where's the outrage about that?

Some people think it's greedy that Apple charges a fee... but they're strangely silent when Sony, Microsoft, and Nintendo also charge a fee.

 

[Imperial926]

52nd state?

Actually, together with France, we're lining up to take back our colony. You messed up your independence and now seem to need a few reminders on culture, honesty and much else besides. Best start drying the tea out in Boston.

 

[webkit]

Not sure what you're talking about. I literally cannot buy digital games for PlayStation anywhere other than the Playstation Store.

While availability can vary, Amazon, Best Buy, Target, Walmart, GameStop, and others offer digital games for various consoles including Sony.

 

[webkit]

There is a lack of competition in the power and gas markets also. Prior to the dma there wasn’t a law mandating app stores are public property.

Nothing like the situation with Apple. Apple has approximately 50% share of the mobile market in the UK and owns the ONLY store where apps for that significant portion of the market can be bought/sold. Hence the issue.

There wasn’t any laws the forced an App Store to be public property. Especially for a lifestyle consumer discretionary product.

Apple blocks alternative iOS app stores in a critical market. Again, Apple has approximately 50% share of the mobile OS market in the UK and owns the ONLY store where apps for that significant portion of the market can be bought/sold. Hence the issue.

Pretty much android dominates the phone market, and so I’ve been told countless times on MR. Samsung dominates the phone industry.

In the UK, iPhone/iOS has dominated as much or more than Android. The difference is that alternative Android app stores are allowed while Apple blocks alternative iOS app stores. Hence the issue.

 

[surferfb]

While availability can vary, Amazon, Best Buy, Target, Walmart, GameStop, and others offer digital games for various consoles including Sony.

That hasn’t ever been true for the PS5.