Apple vs. the "Free Market"
Apple's 30% App Store fee impacts creators' revenues, distorts markets, and limits competition. Its DMCA interpretation enforces restrictive device rules, raising concerns about consumer rights and smaller businesses' viability.
Read original articleApple's dominance in the digital economy raises concerns about its impact on creators and competition. The company imposes a 30% fee on transactions through its App Store, significantly affecting platforms like Patreon, where creators lose a substantial portion of their revenue. This practice, termed "enshittification," involves initially attracting users with quality products, then locking them into a system that restricts their choices and increases costs. Apple's control extends to enforcing strict rules on app content, which can lead to market distortions, as seen with Tumblr's censorship of adult content to comply with Apple's standards. Furthermore, Apple's interpretation of the Digital Millennium Copyright Act (DMCA) allows it to create legal barriers that restrict users' rights to modify their devices, effectively establishing a form of "private law." This regulatory power enables Apple to dictate market dynamics, favoring its own services while disadvantaging competitors. The company's practices illustrate a broader trend where corporations, rather than governments, shape the rules of the market, often at the expense of smaller businesses and consumer choice.
- Apple charges a 30% fee on App Store transactions, impacting creators' revenues.
- The company's practices create market distortions and limit competition.
- Apple's interpretation of DMCA allows it to enforce restrictive rules on device usage.
- Corporations like Apple increasingly dictate market regulations, sidelining government oversight.
- The trend raises concerns about consumer rights and the viability of smaller businesses.
Related
European Union regulators accuse Apple of breaching the bloc's tech rules
EU accuses Apple of Digital Markets Act violations for restricting App Store alternatives and charging high developer fees. New probe initiated on contractual terms. Apple defends changes, faces potential fines up to 10%.
EU Accuses Apple App Store Steering Rules of Violating DMA, Opens Investigation
The European Commission accuses Apple of Digital Markets Act violations related to App Store policies, anti-steering rules, and excessive fees. Apple claims compliance with the law. Investigation ongoing, potential fines pending.
Apple adds nearly endless 20 percent fee for developers in latest EU update
Apple updated its App Store rules in the EU, allowing external payment links but imposing a new fee structure, prompting criticism from developers and an ongoing EU investigation into compliance.
Patreon Should Consider Calling Apple on Its Threats
Patreon is pressured by Apple to comply with its in-app purchase system, offering creators two pricing options. A proposed third option could allow external subscription management, potentially generating positive publicity for Patreon.
Apple's Just Fines
Apple's Services revenue is growing but faces legal scrutiny over anti-competitive practices, particularly transaction fees. Companies like Patreon and Spotify oppose these fees, raising concerns about competition and innovation.
Disclaimer:
I've never used Temu or the Amazon app, but I'm assuming they don't apply a 30% surcharge on physical goods on iOS.
Does Apple have access to Patreon creators' gross revenue? I thought they only charged commissions on payments through IAP, which I assumed is only a minority of their overall gross.
> Every artist, performer and creator on Patreon is about to get screwed out of 30% of their gross revenue, which will be diverted to Apple.
This is inaccurate, as not all Patreon subscribers use iOS devices to support creators.
> The fact that it's a felony to get your Iphone apps from anyone except Apple means that whatever policies Apple makes for the app store have the force of law.
The EC and US DOJ would like a word, please.
> Apple claims this is merely a matter of "editorial standards," no different from a bookstore deciding not to shelve pornography. The difference is that in this case, Apple can block you from patronizing another bookstore, by forcing you to forfeit the $1,000 you spent on your device and potentially many thousands more in media and data and other switching costs.
The question at the heart of this issue is simple; do we own our devices, or not?
When I pay $1,400 for a computer, do I own it? If yes, then why does Apple get to decide what I get to watch or not?
And why does Apple prevent me from deciding what speech I get to engage with my device or not?
The app store is, at its heart, an enabler of totalitarianism. The first link of the chain is forged from the freedom to own your computer for marginal profits, but the rest are forged from your human rights.
Do you want Hong Kong to be a democracy? Too bad. Apple removed the application protestors were using to protect themselves from a totalitarian police state, https://www.nytimes.com/2019/10/09/technology/apple-hong-kon...
https://www.npr.org/2019/10/10/768841864/after-china-objects...
Oh are you gay or queer? Too bad. Apple removes apps made for and by LGBTQ+ people in 78% of countries. Everything from niche forums to dating apps. https://www.fightforthefuture.org/news/2021-06-14-apple-is-e...
Do we own our devices, or do we not?
Stopped reading after the first sentence as this just isn't true. First of all this only affects users who subscribe via the iOS/iPadOS app. Secondly Patreon creators have the option to have the prices for those Apps adjusted so that they receive the same amount of money and Apples fees are just added on top of it.
With blank statements like this that just aren't true and seem to only exist to enrage the reader I don't think the rest of the text will be any better and from just skimming it very quickly it just launches into a rant about Apples business practices without much structure and without any context to the claim in the beginning.
The high customer satisfaction is the lock-in. High customer satisfaction can easily explain the success. The idea that lock-in breeds high customer satisfaction needs to be proven to me.
Considering Microsoft’s dominance was cheered on by the Microsoft ecosystem and derided in customer satisfaction is noteworthy to me.
Apple has high customer satisfaction and a vocal group that consider the happy customers lemmings. These vocalists believe if Apple got out of the way they could show the happy customers what good really is.
All these companies moaning about Apple yet aren’t doing the one thing they have the power to do which is just leave.
If they refuse to leave, then they’re admitting that Apple’s platform is providing value to them and they should pay what Apple wants. I support creators on Patreon, what exactly is wrong with just doing everything via their website? The mobile web is a thing, what more do they need for their glorified payments processing platform?
Related
European Union regulators accuse Apple of breaching the bloc's tech rules
EU accuses Apple of Digital Markets Act violations for restricting App Store alternatives and charging high developer fees. New probe initiated on contractual terms. Apple defends changes, faces potential fines up to 10%.
EU Accuses Apple App Store Steering Rules of Violating DMA, Opens Investigation
The European Commission accuses Apple of Digital Markets Act violations related to App Store policies, anti-steering rules, and excessive fees. Apple claims compliance with the law. Investigation ongoing, potential fines pending.
Apple adds nearly endless 20 percent fee for developers in latest EU update
Apple updated its App Store rules in the EU, allowing external payment links but imposing a new fee structure, prompting criticism from developers and an ongoing EU investigation into compliance.
Patreon Should Consider Calling Apple on Its Threats
Patreon is pressured by Apple to comply with its in-app purchase system, offering creators two pricing options. A proposed third option could allow external subscription management, potentially generating positive publicity for Patreon.
Apple's Just Fines
Apple's Services revenue is growing but faces legal scrutiny over anti-competitive practices, particularly transaction fees. Companies like Patreon and Spotify oppose these fees, raising concerns about competition and innovation.