Epic says it's retaliation for public criticism; Apple says it can't trust Epic's promises.
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Having been in the industry for several decades at this point Apple is the one in control here.The more Apple acts bratty and stamps their feet, the more regulations the EU will heap on top of them to get the desired outcome. If I was Apple, I'd want to cease as little control over my policies and actions to another party, but they're actively asking for it.
Everyone I've heard call Epic a dumpster fire is usually in the middle of blindly defending a monopoly, whether that's Apple or Steam. The actual arguments for them being a bad company are pretty thin and basically just boil down to "they used abusive monetization strategies", something Apple of course would know nothing about.We're probably gonna find it, but once again having Epic as the standard bearer for this stuff only helps Apple because Epic is a dumpster fire.
Ars' comments section about most topics: relatively interesting nuanced discussions.
Ars' comments sections about anything to do with iOS: rabid blind downvotes for anyone who criticizes Apple.
Most developers now pay 15%,
Flat out no. The SDK is a necessary part of the phone that customers*already* paid for and Apple profited off of. Without an SDK, Apple would not be able to develop applications for the phone, and a phone that cannot run applications is useless.In addition, the fee is for a lot more than hosting an app download. The entire SDK, which is constantly advanced, is what enables developers to build apps at all on the platform.a
It's how Apple has chosen to build a system where they can double dip, and charge both consumers and developers for the same thing, hence why they not only make a massive profit on hardware sales but also make an annual profit in the realm of 10 BILLION dollars per year. PROFIT. Not revenue on app store fees, that's pure profit after all their app store costs and platform development costs are accounted for.It’s how Apple has chosen to commercialize all of that work. Especially because most apps either are free or generate relatively low revenue.
Lol I was well aware that post would get downvoted. Look around the comment section and notice that any post remotely critical of Apple is also blindly downvoted to oblivion, it really doesn't matter whether your post is a whiny post saying nothing, or a substantive reasonable post pointing out how Apple's behaviour is anti-competitive and abusive, same result either way on Ars, downvotes for criticizing Tim Apple's benevolent genius.I just downvoted this post.
Why? Because there's no more useless, pointless, and utterly worthless "contribution" to frontpage comment threads than whiny bitching about downvotes and/or the tenor of the conversation not going exactly how you'd like.
You want to know how to avoid getting downvoted? Don't post stupid shit like this.
If we assume for a moment that that's true, it's a powerful argument for the "walled garden" being a good thing. Depending on how many "hundreds" of thousands, we're talking about an "attack rate" of at least 600 apps a day that are sufficiently malicious as to earn a developer ban. For comparison, that's like 60x the number of legitimate Vision Pro apps released per day over the last month.Apple quite literally terminates hundreds of thousands of developer accounts every year. Usually for attempted fraud or malware.
This is technically not true. The App Store only limited access to apps that utilize a certain set of iOS APIs. There has always, from day one, been the ability to make and distribute apps outside of the App Store that utilize another set of APIs - PWAs specifically. You used to be able to load Spotify on your phone while bypassing the App Store. Google Voice used to ONLY be available via that mechanism.But in your example, Costco customers are free to buy products from any store, any time they wish. iOS users are unable to access any of the app market outside of iOS. This being the case, does the mobile app market actually include iOS users, as one market? I really don't think it does.
So you're saying that if I create a new hardware Music Player and support 3rd party apps then I can't
a) have my own app and
b) make the third parties pay platform fees
because I'm a dominant understaking from the moment I have a single user.
And you don't think that's in the slightest bit silly?
I think you overestimate how much EU caselaw there is to support the EU's position here. You didn't cite caselaw so far, only the competition commissions own legal reasoning.
The problem with PWAs is just that Apple crippled PWAs on iOS for literally the past decade by not allowing any other browser to implement them and always lagging several years behind implementing necessary features. Does an app use notifications? Wasn't even possible to consider developing it as a PWA until March last year because Apple hadn't implemented a notification API.The problem is that nobody has bothered to try and create marketplaces that can monetize those apps, mainly because there's no value add in there apart from consolidation of a payment system, and Spotify has been very clear they don't want that to be consolidated - they want to own it.
The web has not made the centralized app store model clear at all. Windows and Macs both typically have multiple app stores, be it their default ones, Steam, company provided corporate ones, package managers like brew, Winget, chocolatey, etc.The web has made it very clear that there are precisely two stable models here - either one centralized store like the App Store, Play (given that even in the presence of the ability for other app stores to exist, that market has consolidated to one store - remember, Epic ran their own Android store which failed with them running back to Play), Playstation, Xbox, etc. or infinite stores - one per developer, or even one per app. Epics real objection isn't that can't sell Fortnite - it's a free app after all. Their objection is that they want maximum revenue take from V-Bucks, the Fortnite in-game currency (which, is should be noted, gives them a monopoly over in-game purchases since I cannot set up my own Fortnite skin store). There's no real middle ground. You have some with physical goods like Amazon 3rd party sales/distribution, Etsy, AliExpress, etc. but for digital goods, you effectively get infinite stores. The very few exceptions like Steam will ultimately fall to the same arguments the EU is making here because digital consolidation is inevitable because there's too little value-add that a digital marketplace can offer other than being the most convenient place to buy, which instantly turns them into a monopoly. The EU simply doesn't understand why digital markets and physical ones function differently.
I’m making a prediction that will please no one but still satisfy the requirements:Why do people keep debating whether Apple should be forced to allow third party app stores? That's not even a discussion anymore in the EU. The DMA mandates it. Done. Those that keep arguing it are the dog that caught the car already.
The open issue at hand is whether gatekeepers are allowed to independently determine who can run a third party app store. We don't know. The DMA doesn't address it in any substantive way other than some technical and security requirements the gatekeeper can require from the third party. The DMA also doesn't prevent the gatekeeper from having commercials behind it, as they absolutely are allowed to profit from their platform.
This particular issue is whether a previous bad actor has an absolute right to become a third party app store or whether the gatekeeper can decline based on that history. We're probably gonna find it, but once again having Epic as the standard bearer for this stuff only helps Apple because Epic is a dumpster fire.
You don’t actually believe that the epic games store is really pro consumer, so you?Im trying to think if an equivalent in another ecosystem
"This legitimate competitor hurt our corporate feelings so their program installers won't work on windows anymore"
Yeah its messed up. Get them EU
My post doesn’t question whether Apple has demonstrated to a court that it’s legal to extract that rent: rent extraction it still remains.The Epic vs Apple lawsuit ended with a clear confirmation that Apple can charge a commission. They just can’t force a payment processor.
Yes, Epic are about the only ones that allow third party IAP that they don't take a cut from.Serious question: Does the Epic store allow third-party games to bypass payment to Epic? Can a developer, such as Apple or Microsoft, publish games on the Epic Game store for "Free" but where you have to pay directly to Apple or Microsoft thereby bypassing paying Epic a royalty? For me, the answer to that question will help me decide which side of this debacle I am on.
Not sure if it has been brought up in the EU, but the US Judge in the Apple/Epic case rejected the exact same argument Epic tried to make over what the relevant market should be, pointing out like you did that if you define the Apps on the App Store (or on iOS) as there own market you are pretty much turning everyone into monopolists - Epic have 100% share of the EGS market, 100% share of Fortnite IAP, Sony own 100% of the PSN market, Microsoft 100% of Xbox etc...thats a very interesting position, has that been challenged in any EU courts? I imagine it eventually will be, as that sets a weird president where you could argue something like costco is its own market with 100% market share (I really doubt it would happen) vs a player in the club shopping market.
Like a foreign entity list?Im trying to think if an equivalent in another ecosystem
Or on a personal level:"This legitimate competitor hurt our corporate feelings so their program installers won't work on windows anymore"
Yeah its messed up. Get them EU
X comes to mind.True, but it's very unlikely that other such companies have also intentionally violated their contracts in a very public and provocative manner, hence, Epic being uniquely "untrustworthy" in Apple's eyes.
And the truly selfish people keep demanding changes such that software that runs on my device now isn't available in the App Store so I am forced to go give my PII and financial details to yet another entity because (they keep screaming), "muh freedumbs." Fuck them, I bought it, as you say, for these reasons and I don't want those protections diluted because of a bunch of corporate greedy and personally selfish twats. Go buy a fucking Android phone.I really, really do not want my iPhone behaving anything like an Android phone when it comes to installing apps that circumvent the protections that are in place.
And the truly selfish people keep demanding changes such that software that runs on my device now isn't available in the App Store so I am forced to go give my PII and financial details to yet another entity because (they keep screaming), "muh freedumbs." Fuck them, I bought it, as you say, for these reasons and I don't want those protections diluted because of a bunch of corporate greedy and personally selfish twats. Go buy a fucking Android phone.
Your argument fails because I am the user and I bought this product of free will knowing about the product and accepting Apple's decisions and want it the way I bought it. There are other options for you personally, go buy one if you want it, and stop criticising the decisions Apple makes for its products that I buy and like.I think the personally selfish people are those who put their needs above those of society as a whole, right?
I think it is bad for society that Apple acts as judge jury and executioner for what apps run on Apple's products. This commingles Apple's personal capitalistic and psychopathic (all large corporations are psychopathic) interests with those of its users.
The DMA is meant to stop that happening, at least a little bit. Even if you're the biggest fan of Apple products, you shouldn't be a fan of psychopaths worth $3T.
The DMA removes Apple as the judge and jury, but leaves them as the executioner. Any third party can open an app store now and they can approve any app they want. Apple retains the ability to ban bad actors, and there is absolutely no way you can argue there shouldn't be a way to remove bad actors from the ecosystem.I think it is bad for society that Apple acts as judge jury and executioner for what apps run on Apple's products.
Your argument fails because I am the user and I bought this product of free will knowing about the product and accepting Apple's decisions and want it the way I bought it. There are other options for you personally, go buy one if you want it, and stop criticising the decisions Apple makes for its products that I buy and like.
If you don't like corporate greed advocate for a different system, I'll stand there with you (I hate this one), but this is the system we have and Apple is being made to change by greedy (Tim Sweeney) and selfish people for reasons such as "muh freedoms" and "capitalistic practices". Your arguments are baseless, despite claiming Apple is making too much money - tell me where in life it says that is bad for a capitalistic company? Too successful is NOT a psychopathic trait, but it does say something about the maturity of people claiming it.
I have only moved to iOS this year pretty much found the constant ads/forced updates on a device I have to keep stock for work tokens too annoying. as for apps, I have not bought one since the days the rezound was on the market. wait I take that back I did buy an app to help catalog DVDs about a year back, but the license transferred between platforms. If I go way back on android I did buy a few things from the amazon app store in the droid X days. there just does not seem to be much I need anymore thats not on the devices by default, or free for download (A few things like crunchyroll are outside subs)Practical basis, how many times have you brought a handset and switched from iOS to Android (or vice versa) due to the price for an app or availability being better on Google Play/Amazon store/etc (or the App Store)? Say $3 instead of $5.
Not every year, but heading into Christmas, Costco often has $100 of Apple gift cards for $85. When I see them, I get them.You can also buy gift cards for the Apple Store, often with a rebate. If I managed to find a £100 gift card for £85 and then bought some software for £100, the developer would get £70 and Apple £15.
Capitalism is not based around the idea that it's good for one person to control all of society's money.Your arguments are baseless, despite claiming Apple is making too much money - tell me where in life it says that is bad for a capitalistic company?
They're arguing that you do not need to lock down the OS for every single user to do that. You can offer the users the option of signing up for your Device Management service during setup, or give them the option of signing up for a competitor Device Management system, (or not use one), and then let that system lock down the device and dictate what can be done on it, just like already happens with corporate Mobile Device Management systems on every other OS (including MacOS).Apple retains the ability to ban bad actors, and there is absolutely no way you can argue there shouldn't be a way to remove bad actors from the ecosystem.
I don’t recall the DMA making that kind of ruling.They're arguing that you do not need to lock down the OS for every single user to do that. You can offer the users the option of signing up for your Device Management service during setup, or give them the option of signing up for a competitor Device Management system, (or not use one), and then let that system lock down the device and dictate what can be done on it, just like already happens with corporate Mobile Device Management systems on every other OS (including MacOS).
I think this is an under recognized difference between the US and EU regulatory views on anti-trust and market domination. They both utilize different definitions.Yes.
Lots of people I think are misunderstanding what the goal of EU regulation is. The goal of EU regulation is to try to either keep or force a free market. They are not trying to stop anti-consumer behavior, they're trying to create a free market so that the market itself stops anti-consumer behavior. To that end the Costco example doesn't work because Costco is competing in a relatively free market for retailers. They don't have a dominant (enough) position to abuse even with memberships as an attempt to lock in customers.
Apple on the other hand sits as a monopolist over iOS and its app store. That means it has a dominant position that can be abused. That's why they're in trouble - they're acting like a monopolist over both their customers and their competitors and so the EU is going to try to step in and force that market to be a free one on the economic theory that free market competition is better for consumers.
It's a different model than, say, the US follows. It's founded on the absolute belief that free markets are best for everyone involved and then enacts harsh regulation (possibly even draconian in some cases) to force markets to be free. An interesting experiment. It's no wonder that corporations hate it - being a dominant player is far more profitable than competing in an actual free market.
Ironically if Apple had followed Steve Jobs original path and had no app store and only distributed their own apps onto their phones they wouldn't have this problem. Since they wouldn't be running an app store their device wouldn't have other businesses dependent on it and they wouldn't have the leverage to be anti-competitive. They also probably wouldn't have 30% of the mobile market in the EU though, so there's that.
You fail at reading comprehension.Lol I was well aware that post would get downvoted. Look around the comment section and notice that any post remotely critical of Apple is also blindly downvoted to oblivion, it really doesn't matter whether your post is a whiny post saying nothing, or a substantive reasonable post pointing out how Apple's behaviour is anti-competitive and abusive, same result either way on Ars, downvotes for criticizing Tim Apple's benevolent genius.
THANK YOU. How it isn't painfully obvious to everyone that any corporation becoming too large is inherently bad for society is baffling to me. All corporations over a certain size should be held to an extremely high standard, for the good of society. Psychopaths only respond to threats of harm to themselves.The US uses a model based HEAVILY on the idea that higher prices are the best indicator of consumer harm. If you can show that your consideration reduced prices, then it is difficult to show harm
The EU uses a model that presumes market power and consideration is bad, regardless of the effects on consumer prices. That the lack of effective competition is the measure, regardless of other concerns. Being big and powerful is, all by itself, enough to bring scrutiny and possible action from regulators.
Personally, as an American, I prefer the EU system. You can't know the effects that more competition might have had on prices, and prices are not the only metric that matters. If you prevent or break up monopolies/monopsonies by default, then measuring the harms caused by monopolies/monopsonies becomes moot.
Update based on what? I'm not sure how Apple deciding not to fight that battle (or Tim Sweeney's unnecessarily hostile response to Apple's conceding, which stops just short of "and we're going to violate their rules again if we can") changes anything anybody's said in this thread.SO...
How many of you are going to update your beliefs?
https://x.com/TimSweeneyEpic/status/1766158416093798866
https://www.epicgames.com/site/en-US/news/apple-terminated-epic-s-developer-account
Update based on what? I'm not sure how Apple deciding not to fight that battle (or Tim Sweeney's unnecessarily hostile response to Apple's conceding, which stops just short of "and we're going to violate their rules again if we can") changes anything anybody's said in this thread.
My beliefs and feelings towards both parties remain comfortably intact.How many of you are going to update your beliefs?
My beliefs and feelings towards both parties remain comfortably intact.
If Sweeney wants to collect his marbles, I’m sure Cook will hold the door. Might even hail him a self-driving taxi.
What is a proportionate response in your estimation.
My own rules of business engagement dictate that you only get to maliciously break a contract with me once. After which I will steadfastly exercise my Right of Association. By my rules, Apple’s actions are proportionate. But ultimately it’s for the courts, not you or me, to decide.
Reviving a flawed argument from the other thread. So, I’ll repeat my counterclaim.
It is reasonable, and actionable, for an electric company to disconnect anyone who violates their terms of service. Don’t believe me? Bypass your power meter. Fuck around and find out.
Apples concession here doesn’t change my belief that Apple was within its rights not to do business with Epic. They’ve elected to reconsider, but have not been ordered to do so.
- Apple can prevent whoever it wants from building an app store, if they've violated a contract with Apple in the past as decided in a different jurisdiction from the EU
Same as above, until a court determines otherwise.
- The DMA does not give regulators any jurisdiction over the sorts of people Apple bans
You’re rehashing the same point. See above.
- "Epic's membership in Apple Developers program is outside the scope of the DMA."
They should be careful what they wish for, lest the Eye of Sauron be cast upon them. See also, you reap what you sow.
- "Why again should poor little Epic Games get protection from the EU?"