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bogwog 2 days ago

> ... the appeals court now suggests that Apple should still be able to charge a “reasonable fee” based on its “actual costs to ensure user security and privacy.”

> Speaking to reporters Thursday night, though, Epic founder and CEO Tim Sweeney said he believes those should be “super super minor fees,” on the order of “tens or hundreds of dollars” every time an iOS app update goes through Apple for review.

Wow, one step forward, and one step back. Good job, Epic.

The outcome is obviously going to be that Apple's store will have the most apps, with the most up to date versions, and with the most free apps/games. I'm sure Fortnite will do just fine though.

Unless I'm misunderstanding this, why would the court allow Apple to act as a gatekeeper for their competitors?

Ajedi32 2 days ago | parent | next [-]

> why would the court allow Apple to act as a gatekeeper for their competitors

Yeah, this is the fundamental problem, and not something this court ruling does anything to fix. Apple has full control over what software its competitors are allowed to sell. The court's solution? Tell Apple to be more fair when dictating rules to its competitors. Yeah... I'm sure that'll work great.

ericmay 2 days ago | parent [-]

Yep, on their platform. Just like Wal-Mart and Kroger have full control over what products their competitors are allowed to sell too (in-store versus name brands). Microsoft only makes and sells their games for example for the Windows platform and doesn't allow portability.

As a pattern there's nothing wrong with it.

The crux of the issue is that creation of a mobile operating system that people actually want, like in some other industries, as resulted in two dominant platforms that don't compete all that much with each other. That's a much more interesting and important "problem" to solve than Apple/Google create competing apps on their software distribution platforms.

Ajedi32 2 days ago | parent | next [-]

My phone that I purchased is not "their" platform. Better analogy would be if Wal-Mart sold me a fridge and then somehow managed to make it so I can only store groceries purchased from Wal-Mart in that fridge. Now if anyone wants to sell me groceries they need to sell them to me through Walmart, otherwise I can't refrigerate them.

samdoesnothing 2 days ago | parent [-]

As long as you understood the limitations of the fridge you purchased, i.e. you weren't defrauded, what's the problem? Do you really need a nanny state to prevent you from making bad purchases??

ivell 2 days ago | parent | next [-]

The problem currently is the duopoly. There are only 2 types of fridges we can buy. And both have the same conditions.

samdoesnothing 2 days ago | parent [-]

There are many other computing devices that can run operating systems other than Android and iOS, including devices that can run completely unlocked versions of Android. You're just lying.

ryandrake 2 days ago | parent [-]

We're not talking about computing devices in general, we're talking about phones.

samdoesnothing 2 days ago | parent [-]

So am I?

There's Linux phones and phones that run versions of Android that are completely decoupled from Google.

johnnyanmac 2 days ago | parent [-]

So your argument here is "Apple isn't a monopoly. The Fairphone is always ab option"?

I'll keep pounding it in people's heads that 30 years ago Microsoft was hit over a web browser. It's a shame these days people would instead revert that and say "just download Netscape". If that worked, sure. But we have decades of market lock in showing it doesn't

ericmay 2 days ago | parent | next [-]

The flaw in the Microsoft comparison is that the web browser was installed in, what, 95% of actual computing devices? Remember phones and all of this other cool technology we have didn't exist.

Today there are many phones to choose from. You can buy an iPhone, or a Pixel, or a Galaxy. You can even buy a more open-source style phone with open-source style stores just like any other generic product feature. There is a marketplace and there is competition, it's just that, unlike what so many people here seem to desire, locked-down stores are what the market prefers.

johnnyanmac 2 days ago | parent [-]

>Remember phones and all of this other cool technology we have didn't exist.

I don't think phones and PCs compete against each other, though. A phone can act like a general computer, but a PC can't act like a phone.

>Today there are many phones to choose from.

We had Linux, mac, BSD and a few other OS's back in the day as well. If we're saying Windows is 95% of PCs back then, I don't think it's controversial saying Apple and Android are 95% of phones. Especially in a day and age where phones are now needed to act as verification for work and school and chat communications are expected to be snappy (so it's not like I can just opt out and go back to dumb phones).

>locked-down stores are what the market prefers.

That's why anti-trust isn't left to "what the market prefers".

Yes, society will always waiver towards idyllic destruction if left ubchecked. People generally "like" monopolies. People yearn for that society on WALL-E where they do minimum work and get maximum dopamine. It's a quirk genes that benefitted us 1000 years ago that haven't adjusted to modern realities.

Governments and non-monopoly businesses alike hate it, though. Don't want to put all your eggs in one basket. Don't want to have a single businessman hold the country hostage later and shift to a plutocracy as they abuse your citizens who work.

That's why it's best to stop it much earlier and not when the company becomes a trillionaire. But now is the 2nd best time.

samdoesnothing 2 days ago | parent | prev [-]

Well they aren't a monopoly. They have what, ~50% market share?

MS had 97% market share and were abusing their market dominance to push others out. Apple isn't doing this, so there isn't a valid comparison here.

johnnyanmac 2 days ago | parent [-]

Duopoly isn't a much better comparison here. It's big enough that both apple and Google should be addressed.

samdoesnothing 2 days ago | parent [-]

Seems like there are a relatively large number of competitors to Apple and Google. Eg. Samsung, Motorola, Lenovo, OnePlus, LG, HTC etc. Not to mention Asian brands.

Duopoly might apply if those companies were using their combined dominance to collude and push other competitors out but that isn't really happening as evidenced by the amount of competitors that are in the market.

johnnyanmac 2 days ago | parent [-]

I don't think you're on the same frequency as the court proceedings here. Try to read those first to better understand the context here.

You're doing the equivalent of saying "but Dell and HP make PC's". When the case is about Internet explorer.

samdoesnothing 2 days ago | parent [-]

You brought up the MS antitrust suite and I'm providing context as to why it's not relevant.

array_key_first 2 days ago | parent | prev | next [-]

The problem is that it obviously sucks. If you say "no it doesn't" - you're lying, you know it sucks. Obviously me only being able to refrigerate Walmart goods sucks.

> Do you really need a nanny state

This is a false dichotomy. The reason you're doing this is because you know the current situation sucks major donkey dick and nobody, including you, likes it. So to defend it you have to appeal to something even more sucky. It's the death rattle of a poorly constructed argument.

You don't need a nanny state, quite the opposite! You need a freer market.

When Walmart sells the evil fridge, which I can only assume has been hexed by a swamp witch, what they are actually doing is subverting the free market. They're cheating.

Instead of competing by selling the best groceries or the best fridge, they're competing by artificially limiting their competition. They see the market, say "fuck that market, your market is only our stuff", and force your hand. They've created a soft monopoly.

The misconception about free markets is that, if you just let them be, then they're good. Ha. Every free market player is actively devising every single plan imaginable to make the market less free.

If Walmart could run behind you and lock the doors so that you have to buy their groceries, lest you starve to death, they would. Luckily, the "nanny state" stepped in, and we have a freer market because of it.

samdoesnothing 2 days ago | parent [-]

So the problem with your fridge example is that if the product was as bad as you say, nobody would buy it and thus there is no risk of a monopoly. If the product is so good that everyone wants it, there goes the rest of your pro-consumer argument.

This whole argument is a neat trick, as you smuggle bad outcomes into a situation where there aren't any by pretending that everyone wants to buy the horrible product.

If you want to make a case that monopolies that arise from consumers overwhelmingly choosing a preferential product are bad, go ahead, but don't construct an impossible scenario where everyone loses their minds and buys a product that provides purely negative value to them just cuz.

array_key_first a day ago | parent [-]

The key is you don't tell consumers.

A pre-requisite for a free market is consumer choice, which deception naturally undermines. And don't even say "well the EULA..." no, doesn't count.

samdoesnothing a day ago | parent [-]

Consumers leave bad reviews and people stop buying the product.

array_key_first 10 hours ago | parent [-]

I think everyone knows most reviews are bullshit.

Look, you're describing how it should work, and I agree. But how it actually works is far, far different.

No, first the product is introduced with no ads. You sign a EULA that might contain language around ads, but guess what - the EULA is 100 pages long and nobody is reading that shit because we have jobs and families.

The product gets glowing reviews, probably because it's cheap and subsidized by the mega-corp (aka sell product at a loss for market capture). Then, the product enshittifies from under your feet.

There's nothing you can do at that point, because you already bought it. Your "market", so to speak, is 1. You were deceived. You thought you were buying a fridge, but really you were just licensing access to a fridge.

But say you didn't buy it. Even then, you're fucked. There's no trustworthy online reviews, well, anywhere basically. And it's just not reasonable to expect consumers to do hours of research prior to buying anything. No, I should be able to go to the store and ascertain the quality and nature of the product. But I can't, so I get tricked and hoodwinked.

This is all very purposeful. Companies know if they're honest about their products that consumers might look at the competition. So everyone just scams and lies. Even multi-billion dollar multi-nationals are basically running scams at this point. And guess what? All their competition is doing it, too. Because if your competitor is scamming, you have no choice but to be a con artist yourself, lest you become irrelevant.

bogwog 2 days ago | parent | prev [-]

Serious question: how many black turtlenecks do you own?

samdoesnothing 2 days ago | parent [-]

Black turtlenecks? In this economy?

bigyabai 2 days ago | parent | prev [-]

> Just like Wal-Mart and Kroger

You've been repeating this flawed comparison for years. It's getting really stale.

The App Store is markedly unlike Wal-Mart or Kroger, in that a user cannot buy one thing from one store and another thing from the other. This would be like buying a Kroger-branded car and then being forbidden from entering the Wal-Mart parking lot. The problem with the App Store is not Apple's control over it and the Apple-branded experience - it is the exclusion of alternative and competing schemes that could naturally drive down their own prices.

If Wal-Mart or Kroger did this, they would be in the same hot water as Apple. Probably quite a bit worse, since people understand the commoditization of groceries better than software.

> That's a much more interesting and important "problem" to solve

No it's not. The industry has no interest in overturning it, if there was commercial demand for an innovative third platform then we'd see one. The crux of this issue is Apple becoming a services company and then denying competing services from competing on equal grounds. It cannot get any clearer than that.

ericmay 2 days ago | parent [-]

> You've been repeating this flawed comparison for years. It's getting really stale.

Well I've been repeating it because it's still true.

> The App Store is markedly unlike Wal-Mart or Kroger, in that a user cannot buy one thing from one store and another thing from the other.

You're just shifting around a definition of store to fit your argument. If you want to be consistent, it's more like you can't go in to Kroger and demand to buy products sold at Wal-Mart for Wal-Mart prices. You're in a different store.

> No it's not. The industry has no interest in overturning it, if there was commercial demand for an innovative third platform then we'd see one.

So the market is clearly saying "this works and we like it". It's just that the lawyers and accountants want to shift which giant corporation gets to keep more of whatever fee percentage.

> The crux of this issue is Apple becoming a services company and then denying competing services from competing on equal grounds. It cannot get any clearer than that.

Equality will never exist on these platforms, nor is equality necessarily something that's desired. Every company on earth that operates any sort of marketplace or store sets rules and boundaries that restrict competition. You're just mad about Apple/Google doing it because some algorithm decided it was an important issue for you. Do you know why that's true? Because you're sitting here arguing about Apple/Google doing it and not every other company doing it.

Even worse is that these changes that you champion have resulted in no price reductions, no "innovation", and have degraded features that I personally like and enjoy.

bigyabai 2 days ago | parent [-]

> it's more like you can't go in to Kroger and demand to buy products sold at Wal-Mart for Wal-Mart prices.

You don't have to. Kroger and Wal-Mart are completely commoditized options providing the same service. There is fundamentally no difference from buying at one store vs the other; you can do both. If someone goes into Kroger demanding to buy Wal-Mart products at Wal-Mart prices, they're in luck; Wal-Mart exists. There is no lock-in to either store or the options they provide. You're describing a boogeyman that doesn't exist because the greater grocery market is functional and competitive.

The same opportunity does not exist for customers of the App Store. Apps themselves are entirely commoditized; it's only the App Store that is a deliberate monopoly. That has been consistent since the launch of the iPhone and packaging of iOS applications as infinitely reproducible .IPA files.

> So the market is clearly saying "this works and we like it".

That's how most monopolies work, yes. Unfortunately, "the market" won't be asked to testify to whether or not they like or enjoy a monopoly, but whether it causes anti-competitive damages.

> You're just mad about Apple/Google doing it because some algorithm decided it was an important issue for you.

I cannot parse what you're even trying to accuse me of in this sentence. This is the Y Combinator forum. We discuss monopolies like AdSense and the App Store because they harm the economy, not because Instagram Reels showed me a Louis Rossman short.

Spivak 2 days ago | parent | prev [-]

Because Epic hitched their real desire, we want to do digital distribution independent of Apple, to wanting alternative App Stores and alternative payment methods. And Apple responded with a scheme that does the latter without the former.

Sure you can use your own payment processor, we're still charging 27% though. Sure you can have your own App Store, you still have to go through the same review process though. It seems some of the cracks in this malicious compliance are starting to show.

mike_d 2 days ago | parent [-]

There’s a Best Buy a few miles from my house. Why aren't I allowed to put my own products on their shelves, or set up a little folding table next to the phone accessories to sell my own cases?

It is not fair to me as a merchant that everyone who wants to buy a phone case goes to Best Buy. That's where all the foot traffic is. It's clearly anti-competitive that they expect me to pay for shelf space I benefit from.

And now they want to charge me to verify that the USB-C cables I'm selling actually work? How is that remotely reasonable? Just because most of my cables are faulty and customers will inevitably go complain to their customer service desk, why should I bear that cost?

Consumers deserve the right to choose accessories from multiple independent merchants inside Best Buy. Suggesting otherwise is anti-consumer, anti-choice, and proof that you hate open and accessible ecosystems.

anonymous908213 2 days ago | parent | next [-]

For this analogy to be comparable, you would first have to consider that Best Buy, together with Walmart, owns 99.9999% of all store real estate in the world. You would also have to consider that the "shelf space" in this case is free and comes at zero cost to Best Buy; in fact, giving you virtual shelf space increases the amount of traffic that comes into their stores, resulting in a benefit to themselves.

Your analogy as presented was so lacking in merit you might as well have been talking about cats and leprechauns for how completely nonsensical it was to bring it up in the context of Apple.

mike_d 2 days ago | parent [-]

Simon and GGP combined do own an overwhelming percentage of all retail square footage in the US, but lets at least consider the rest of the argument here.

Apple's "shelf space" is not free. There are constant R&D expenses involved in introducing new sensors and screens that make the underlying apps better. They take on the support load of on-boarding users, managing the relationship, and dealing with any problems. Advertising, carrier validation, third party hardware ecosystem, etc.

Epic wants to sidestep all of the costs of building a platform, and offload support costs onto Apple.

anonymous908213 a day ago | parent [-]

> Simon and GGP combined do own an overwhelming percentage of all retail square footage in the US

This is factually incorrect, and not only incorrect, but so wildly far from being correct that one wonders if this statement was made in bad faith. They only have around 300 million sqft out of an estimated 12 billion sqft, around 2.5%. That is not an overwhelming percentage, nor is it "99.9999% of all retail square footage in the world", which was not a hyperbolic statement. Competitors in retail can obtain their own shelf space. You cannot obtain your own shelf space for mobile software. The network effects of hardware+OS centralization are too strong, so there are and never will be any viable competitors to iOS and Android.

> Apple's "shelf space" is not free. There are constant R&D expenses involved in introducing new sensors and screens that make the underlying apps better.

The R&D expenses do not change regardless of whether there are 1 million or 10 million apps available for iOS. Allowing people to distribute their own software comes at no cost to Apple.

> They take on the support load of on-boarding users, managing the relationship, and dealing with any problems.

Apple absolutely does not do any of this as it pertains to individual apps.

> Epic wants to sidestep all of the costs of building a platform, and offload support costs onto Apple

Nobody is asking for Apple's support; really, what the world needs is less of Apple's involvement in the hardware the people own, not more. Epic is clearly willing to spend money on building platforms, since it has a documented $600 million in losses in its effort to build a competitor to Steam. This, however, is not a case where it is possible to build a platform.

stale2002 2 days ago | parent | prev | next [-]

> It is not fair to me as a merchant

You absolutely can sell your product as a merchant! Best buy doesnt force you to pay them a fee, if you are selling electronics. You are perfectly within your right to ship the electronics to the merchant yourself and best buy doesnt take a dime!

The same is not true for Apple. For Apple, a customer can want to make a direct agreement with an app store developer, without the involvement of Apple in any way, on the phone that they completely own, and Apple wasn't allowing this to happen.

It would be like if it was illegal to setup competing stores that are located next to best buy that dont involve best buy in any way. That would be absurd.

HDThoreaun 2 days ago | parent | prev [-]

Best buy owns their store. I own my phone. You can open a store next door to best buy, thats what epic wants to be allowed to do on ios.

knollimar 2 days ago | parent [-]

Apple pays 100% of the tax on the service road to the stores and pays for the parking lot, though. They deserve some fee and that's what the courts said, right?

johnnyanmac 2 days ago | parent | next [-]

You call it a tax, most others would call it the cost of doing business.

But yes, that's built into the product's price. Devs are paying for a license to work with IOS and need to own hardware only Apple sells to work on IOS. So I think those costs are covered.

We'll see what the "reasonable" price is. If nothing else, we know 27% was too much even for appeals.

knollimar 2 days ago | parent [-]

Payment processing is worth 3. I assume the other stuff is somewhere within an order of magnitude of that, so maybe like 9-12% total is fair?

stale2002 2 days ago | parent | prev [-]

> They deserve some fee

Not if the only way to get to the store was through that road. In that case, there are public access laws and it is literally illegal for people who "own" a road to charge people money, if there is an easement.

Thats probably a simplification, but they are called "easement by necessity." rights. So even in your example of the roadway, thats also wrong. They get zero dollars.

knollimar 2 days ago | parent [-]

Isn't that only to get somewhere else?

My point is in the real world sharing an area with it would mean the other store also contributes tax wise. It's not equivalent to bring up real life if the real life paying part isn't also adhered to; the lack of symmetry is notable. I don't think they deserve to set their price, though (30% is way too high).