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ArkVark | 5 years ago

I think the inevitable move here is for the EU to enact a maximum % commission for platforms above $1b revenue, at something like 20%. Maybe for sales from that region or for developers in that region.

Unfortunately the EU is going the opposite way - increasing VAT and digital taxes, which are passed straight onto developers.

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izacus|5 years ago

Except this fight is not about percentages themselves. It's not about whether it's 30%, 20%, 5% or 1%. It's about the fact that there's no free market and that Apple dictates content, prices and censors at their own whim and there cannot be free market competition to them on one of the most popular computing platforms.

Capping the commission does nothing to solve this - opening up a competition when someone else can provide better terms, vetting or different type of content (now deemed unacceptable to Apple political outlook or prudish stance) is the solution.

It also makes Apple actually work harder and start thinking about what ACTUALLY means to build a secure, user respecting OS instead of copping out by randomly rejecting app updates.

pjmlp|5 years ago

Looking forward to Epic Store on the Playstation 5.

aravindet|5 years ago

I don't know about inevitable, but price regulation would not be the best outcome here.

My hope for this is to see regulation that recognizes that hardware, operating systems, application distribution and payment processing are four separate markets and must be unbundled.

That does not mean breaking Apple and Google up or preventing them from providing all these things within an integrated user experience; it should however prohibit:

- using technical or legal methods to prevent consumers from installing any operating system or app store on their hardware, and independent developers from creating such operating systems or app stores.

- using technical or legal methods to prevent developers from using a payment processor of their choice while using Apple's or Google's application distribution service.

I think the judgements against Microsoft in the browser wars might serve as precedent.

The tricky part is recognizing that in two-sided markets, the threshold of market share at which a company achieves a harmful, competition-stifling amount of market power is much lower than in traditional one-sided markets.

jonatanheyman|5 years ago

No. The solution is to allow third party app stores, and then Apple can keep charging whatever commission they want.

The high commission percentage is not the only issue with Apple's monopoly. It's also that they are gate keepers of apps they don't approve of, they can decide to throw out apps to destroy competition, etc.

tekkk|5 years ago

To be fair most digital content is still purchased out of app stores so I dont think the developers are the losers there.

Losers are the governments if they cant pay for their healthcare or care for their elderly because all the big internet co's dont pay any taxes for their profits in their countries. A digital tax would at least put pressure on them to take a smaller slice of the pie. Granted, it might be not the optimal solution for the problem.

ArkVark|5 years ago

Europe generates a lot of content, but owns none of the platforms. Lower commissions on those stores would translate directly to higher profits and investment by those content creators, which would be taxed directly and indirectly.