Apple on Tuesday found itself the target of a 785-million-pound ($1 billion) class action lawsuit brought by more than 1,500 apps developers in the UK over its App Store fees.
That’s still only 0.034% of its market cap, it would simply be a slap on the wrist even if they lose.
it’s x percent but you’re using our product and infrastructure and we have to invest people and resources to verifying apps getting published.
If Apple wanted, they could allow developers to supply their own infrastructure. It would cost a lot less than 30% of the developer’s gross revenue. Apple could also charge, say, ten thousand dollars per hour for the time the review team spends checking the app. That would also work out to astronomically less than 30% of the developer’s gross revenue.
The App Store is a great service and Apple is entitled to collect a fee. But the amount they’re charging is excessive. In a fair market with proper competition they could never get away with charging that much.
But you know it’s just not Apple right? This is standard rates at this point. No one was arguing against your point - but there is an industry high rate at play here.
Just because it’s the industry standard rate doesn’t mean it’s acceptable. It used to cost $0.25 to send an SMS and $1.25 to send an international SMS. Mobile data on international roaming used to cost $10 per megabyte.
Those were standard prices. That didn’t make them “fair”. Eventually various forces came into effect in and the prices dropped down to where they are now, which is often pretty close to free.
With the monopoly control Apple has over the App Store, it isn’t possible for the natural market to push prices down to where they should be, which means the only way to get there is through lawsuits, regulation, fines, etc etc. This isn’t the first lawsuit, and it won’t be the last. Apple might win this battle but they’re not going to win the war.
If Apple wanted, they could allow developers to supply their own infrastructure. It would cost a lot less than 30% of the developer’s gross revenue. Apple could also charge, say, ten thousand dollars per hour for the time the review team spends checking the app. That would also work out to astronomically less than 30% of the developer’s gross revenue.
The App Store is a great service and Apple is entitled to collect a fee. But the amount they’re charging is excessive. In a fair market with proper competition they could never get away with charging that much.
But you know it’s just not Apple right? This is standard rates at this point. No one was arguing against your point - but there is an industry high rate at play here.
Except Apple have no other way to distribute on iOS bar their store.
That’s doesn’t make it right. It’s excessive across the board should should be reduced.
Just because it’s the industry standard rate doesn’t mean it’s acceptable. It used to cost $0.25 to send an SMS and $1.25 to send an international SMS. Mobile data on international roaming used to cost $10 per megabyte.
Those were standard prices. That didn’t make them “fair”. Eventually various forces came into effect in and the prices dropped down to where they are now, which is often pretty close to free.
With the monopoly control Apple has over the App Store, it isn’t possible for the natural market to push prices down to where they should be, which means the only way to get there is through lawsuits, regulation, fines, etc etc. This isn’t the first lawsuit, and it won’t be the last. Apple might win this battle but they’re not going to win the war.
Ok? Agree? Not arguing against any of that.