This is absolutely ridiculous and literally discriminatory. Why should it matter to Apple how much money the app makes?
It's the same with the DMA where revenue and stock market value is important criteria.
This is absolutely ridiculous and literally discriminatory. Why should it matter to Apple how much money the app makes?
Malicious compliance. Still don’t understand how they can charge this in the first place…Well, that’s an improvement. But the fact that they didn’t include this from the beginning shows that Apple is either stupefyingly myopic and disconnected from their developer base, or that they just try and see if they get a pass.
Imagine building an item, selling it wherever you want and expecting the components of that item to be given to you for free.Imagine that, paying Amazon to purchase a product sold at Walmart if the consumer owns a kindle.
Well yes as I do that all the time when I want to run older versions of an app, apps no longer on the store or test if an app is worth purchasing.Do you have anything to back up your claim about it being easy to pirate iOS apps? And anything about pirated software being installed en masse on iOS? Because that tanks the whole argument in the first place. “Apple makes it impossible to install whatever I want” and “there’s rampant piracy on the platform” seem to be in direct opposition of each other.
Well that’s the easy part then considering civil law doesn’t rely on court precedent but on codified law and statutes, and legal precedence is mostly limited to the CJEU rulings.Besides that, the legal license stuff might be true or not? I doubt anyone knows contract rules of “most jurisdictions”. So excuse me for not just taking your word for it. Even legal scholars seldomly know more than just a handful of jurisdiction rules.
The teleological interpretation of EU law, as applied to the sale of hardware inclusive of software, leads to the understanding that such a transaction is a transfer of ownership of both the hardware and the software.II. Background
- Directive 2009/24/EC:
- This directive addresses the legal protection of computer programs within the EU.
- It recognizes that software interacts with other components of a computer system and with users.
- The function of software necessitates interconnection and interaction with hardware
- Recent CJEU Rulings:
- The Court of Justice of the European Union (CJEU) has clarified the classification of software as goods:
- In UsedSoft GmbH v Oracle International Corp, the CJEU held that the supply of computer software by electronic means, along with the grant of a license, falls within the definition of “sale of goods” under the Commercial Agents Directive (86/653/EEC)
- The CJEU emphasized that software qualifies as goods irrespective of whether it is supplied on a tangible medium. Economically, the sale of computer software online is the functional equivalent of the supply of a material medium
III. Legal Argument
- Definition of Goods:
- CJEU Precedent and the Bundling of Rights: The CJEU’s decisions have consistently reinforced the notion that software, when sold in conjunction with hardware, is bundled as part of the goods. This bundling inherently includes the transfer of rights associated with the software, which are indivisible from the rights associated with the hardware.
- The term “goods” is understood to mean “products which can be valued in money and which are capable, as such, of forming the subject of commercial transactions” (Commission v Greece).
- Directive (EU) 2019/771 and the Sale of Composite Goods: The directive underscores the high level of consumer protection in transactions involving goods, which, by logical extension, includes software pre-installed on hardware. This directive, read in conjunction with the CJEU’s jurisprudence, supports the interpretation that the sale of composite goods entails a complete transfer of all associated rights. Software, whether tangible or electronically supplied, satisfies this definition. Its economic value and capacity for commercial exchange align with the concept of goods.
- Integral Component and Functional Equivalence:
- When software is bundled with tangible goods (e.g., smartphones, computers), it becomes an integral component of the overall product.
- Consumers reasonably expect that the included software is part of the package.
- Whether supplied on a tangible medium or via electronic download, software serves the same functional purpose. The mode of delivery does not alter its essential characteristics.
- Consumer Expectation and Contractual Reality: The consumer’s anticipation aligns with the contractual reality of acquiring a composite good. When procuring hardware that necessitates software for its functionality, the consumer legitimately expects that the software is part of the aggregate purchase, not a discrete entity subject to additional licensing.
- Invalidating Post-Purchase License Agreements:
- Pre-Purchase Consent and Post-Purchase License Agreements: Any license agreement not explicitly consented to prior to purchase is susceptible to challenge as an unfair contract term under the Consumer Rights Directive (2011/83/EU). This is particularly pertinent when such terms seek to impose restrictions that are incongruent with the consumer’s legitimate expectations of ownership and use.
- If a license agreement was not agreed upon before purchase completion (i.e., before ownership transfer), consumers can argue:
- The license agreement is not part of the original transaction.
- The software’s inclusion in the tangible good constitutes a sale of goods.
- The license agreement cannot retroactively alter ownership rights.
- Inextricable Linkage: The software pre-installed on devices such as smartphones or computers is not merely ancillary; it is inextricably linked to the hardware. This symbiotic relationship signifies that the software is as much a constituent of the product as any tangible component, thereby forming a single unified good.
- Principle of Exhaustion of Rights: The doctrine of exhaustion of rights, as elucidated in the UsedSoft ruling, unequivocally applies once the hardware, inclusive of the software, is sold. This exhaustion transcends the physical aspects of the goods and extends to the intellectual property rights vested in the software, effectively nullifying subsequent control by the copyright holder over its use or resale.
IV. Conclusion
In summary, EU law classifies software as goods, regardless of its mode of supply. The Cyber Resilience Act reinforces this classification by emphasizing cybersecurity obligations. When software is integral to tangible goods, consumers’ rights extend beyond mere licensing agreements.
The bundling of rights inherent in the sale of hardware that encompasses software creates a composite good where the software is an integral component. The legal principles of exhaustion of rights, consumer expectations, and the CJEU’s precedent in UsedSoft GmbH v Oracle International Corp form a robust foundation for asserting that such a sale constitutes a transfer of ownership of both the hardware and the software. Consequently, any post-purchase license agreement that seeks to undermine this transfer is legally tenuous and may be deemed invalid if not agreed upon before the completion of the sale. This interpretation aligns with the EU’s commitment to ensuring a single digital market that respects the rights of consumers and the integrity of transactions involving digital goods.
Yea imagine selling a product and the mafia comes for a shakedown. For all the services they provide for you that you also just happen to not use at all. Sounds absolutely fair.Imagine building an item, selling it wherever you want and expecting the components of that item to be given to you for free.
Your country chose to join. That’s democracy, if you don’t like it you can always vote to leave or influence your politicians. You always have a choice.
Initially I disagreed with you.. you'd own the hardware and not the software. But....... I feel like I own my MacBook more than I do my iPhone. If I wanted to stop using macOS now and keep using the computer I paid ££££ for, I could just never boot into it and I have the choice of Windows and Linux. Not so much the case with my iPhone...You're looking at this rather strangely – it's not their platform. If I pay £1500 for a phone (or a computer) it stands to rights that the device is now mine. Why should I have to pay directly, or indirectly, for the privilege of installing software on hardware I own. Thankfully the EU won't put up with this nonsense.
And the EU constitution never got passed by the way. And a constitution would have granted us more uniformal protections as it intended to create a consolidated constitution for the European Union(EU). It would have replaced the existing European Union treaties with a single text, given legal force to the Charter of Fundamental Rights, and expanded qualified majority voting into policy areas which had previously been decided by unanimity among member states.My country indeed chose to join. But back in 2005 we voted against the European constitution (which gives the EU rights to do idiotic legislation like this) (see: https://en.wikipedia.org/wiki/2005_Dutch_European_Constitution_referendum ) but in the end our government chose not to listen to the citzins and greenlit this constitution anyway.
Uh Hu, any actual proof of that? You have a parliamentary democracy. You have all the choices, just how the Uk left, You’re just in the vast minority.And basically any referendum we had in the past 20 years our dear "democatic" government chose to ignore entirely. And chosing to leave the EU, even if there was a referendum for it, would also be ignored by them. So really, I don't have any choice.
My country indeed chose to join. But back in 2005 we voted against the European constitution (which gives the EU rights to do idiotic legislation like this) (see: https://en.wikipedia.org/wiki/2005_Dutch_European_Constitution_referendum ) but in the end our government chose not to listen to the citzins and greenlit this constitution anyway.
And basically any referendum we had in the past 20 years our dear "democatic" government chose to ignore entirely. And chosing to leave the EU, even if there was a referendum for it, would also be ignored by them. So really, I don't have any choice.
Yes. And until iOS that was never a thing. Windows, MacOS, Linux, Unix, etc etc etc.Instead, developers are paying Apple to engage in commercial business on their platform.
Why would I imagine that? What does that have to do with this article?Imagine you’d have to pay Apple money to install an app on your Mac from some website.
Siri isn't that bad.
I don’t believe that you believe that this is genuinely an option.NOBODY is forcing you to pick either Google or Apple. On Android you can chose to use the open soruce android using the Android Open Source Project (AOSP) see: https://source.android.com/ and if you don't want android at all you can always make or use a Linux phone.
Sure you can't use the awesome platforms Apple and Google spent BILLIONS to develop. But that is up to you.
I think it's really strange that the EU can basically say: "Thank you, Apple / Google for developing iOS / Androd. BTW. we own your system now. And if you don't listen to us, we'll fine you."
And, even in the areas where it kinda clear, they can apparently go back and say, “No, though the text hasn’t changed we meant this. And, where we provided actual values for determining gatekeeper status? Those numbers were just for decoration, not for actually letting anyone know what a gatekeeper is. BTW, we can’t wait for you to release the Apple Vision Pro in the region because since you will command 100% of the Apple Vision Pro marketshare with the first one sold, that’s going to be a gatekeeper, too.”That’s part of the issue, the law is apparently not that clear since no one can pinpoint what compliance looks like.
In that analogy, Apple literally sourced the ingredients, hired the chefs, built the storefront, hired the customer service folks, designed the logistics and shipped and stocked the shop with cakes. And, the EU had full knowledge of everything they were doing every step of the way and signed off on it.
And then they sold the cake to the customer.In that analogy, Apple literally sourced the ingredients, hired the chefs, built the storefront, hired the customer service folks, designed the logistics and shipped and stocked the shop with cakes. And, the EU had full knowledge of everything they were doing every step of the way and signed off on it.
They are not saying that. But the exact same thing happened with railroads, oil companies, telecoms, etc.
They built critical infrastructure. Capitalism is not self regulating when the product is critical and has a monopoly. This is the purpose of government.
And that almost always ends up being worse for the consumer. And that's also not entirely true here in the Netherlands. For exmaple the government owns the company that services the railroads (ProRail) and they own 100% shares of the biggest transport company (NS), but there are other companies that are privately owned who operate on those railroads.
Also the government doesn't own Oil companies here or telecom. We do have water management which is on it's own a government like solution. (and even democratic with elections and all)
But they also overregulate things, which in the end stifles innovation. And costs millions upon millions of tax-payers money. For example the national police has been updating (or failing to-) their systems since the late 90s up until today.
If we would have government controlled operating systems since the beginning we would by now still be using Windows 3.11. And I'm not even exaggerating that.
And honestly every time the government does stuff like this is always because of "competition", "reduced cost" or "user choice". But EVERY time there is less (or no) competition afterward, prices go only up and alarmingly fast and the users don't have additional choice.
How is it smart or reasonable? What apple is doing is basically telling developers "Well if you want the EU rules to apply in your particular case, you'll have to pay us .50€, otherwise go F yourself."Smart and reasonable solutions here.
Here's the thing I'd like someone to help answer (or point out my ignorance): Android already allows for 3rd Party (or Alt) stores, 3rd party payments, 3rd party in App payments, allows of the open use of the NFC chip, provides for direct side-loading (albeit with scare warning messages) -- Bottom line: Devs just flat out have more options for listing and selling their (free, freemium, or paid) apps and for keeping more of the revenue from those digital sales on Android. Moreover, freedom to to just use the handset hardware. And, far less arbitrary denials, not to mention options when denied.My guess is this is Apple trying to get ahead of this problem before the EU steps in and decides the CTF is a load of crap and forces Apple to remove it. But will these changes be enough to placate the EU?
All ask my previous post in a different way here: Apple would get crushed (and not by any legal, judicial, or governmental entity) if they decided, for example, that with the introduction of "Apple Silicon" they were going to migrate to only allowing software sales only though the Mac App store. Practically, no developer already uses the Mac App store. Apple Silicon would not drive software sales. Developers just won't put up with that kind of draconian control.Apple will notarize iOS apps like how Apple notarizes macOS apps. But Apple doesn't get a CTF from Mac app developers for apps people obtain from outside of the Mac App Store, but Apple wants a CTF for iOS apps on alternative stores/websites. That's the point.
OOPS, excellent point, change all of that to “fake cakes” that they rent to companies that sell cakes (as display units). The EU currently supports and upholds the practice of devices being licensed, not sold. Likely, so that companies will continue to sell products in the region. They’ll have to re-evaluate that at some point.And then they sold the cake to the customer.
Apple insisting the cake isn’t sold but rented