So, basically Microsoft and Meta are saying that it should be illegal for Apple to charge for the use of their technology platform (iOS) and only make money from iPhone hardware sales.
Good luck with that. Apple can charge whatever they want, if they want, no matter where the apps are distributed.
Also, a question to Microsoft: are you going to allow alternate marketplaces and/or payments on your very closed Xbox platform?
Will you stop collecting a cut also from physical disc sales?
If not, please just shut up. You want money. This isn’t about freedom. This is just about money.
(Yes, MS doesn’t make money from the Xbox hardware, but that's just a choice they have made.)
This sounds like an American view of law. I’m not sure if it’s the same at the EU level but here in the Netherlands “letter of the law” isn’t a thing like in the US. Of course the words still matter, but intent is very much taken into account. It’s one reason why our legal system isn’t so rife with litigious bullshit.That's not how law works. There's the letter of the law, which may or may not actually be in keeping with the intended spirit of the law, depending upon what it says.
The spirit or intent of the law does colour judge's interpretation of the law, but that can only be pushed so far (at least in theory - if you have an activist judge...).
A law that is vague is less that useful, because it's open to interpretation and reasonable arguments from parties as to why their particular interpretation complies with the law.
They are if they aren't subsidizing the cost of the system. That's the crux of the issue here:
Consoles sold below cost require subsidy
Consoles sold for profit do not require subsidy
Exactly. I don’t see Microsoft agreeing to allow GOG to sell games directly on an Xbox, and anyone who thinks Microsoft would sell them for $299/$499 if they could sell them for $1299/$1499 is either delusional or a liar.
I think it's also telling that it's only the big companies who are complaining. You don't exactly hear tech blogs post about what the common man on the street thinks, and maybe that's the whole point. That consumers don't exactly care about a 30% tax they will never see, and they don't really hate closed app ecosystems. But shining a light on this would violate the whole narrative that Apple is evil and needs to be as open as android, when in reality, consumers buy iOS devices knowing fully well what they were getting themselves into and consciously chose safety and security over the freedom to sideload apps (and malware).Facebook and Microsoft complaining? That's rich...
Good luck with that.I might see fewer Facebook-brokered ads?
Works for me.
Ah, so you side with the GOP & corporations like Apple and want to strip us of regulatory protections, got it. The current judiciary is infected by GOP hacks that Trump shoved in there that want to kill Chevron and strip away necessary protections and rights. We could kiss any hope of environmental protections goodbye, alongside constraints over corporate power, and taking down monopolies like Comcast and AT&T through Title II at the FCC, or any hope of the FTC toppling the monopolies of Google, Apple, Microsoft, and more. That's the kind of shithole you're arguing for when you say we should get rid of Chevron.Yes, actually. American law has been infamously vague and sloppy and I am firmly against a revolving door of policy whiplash just because Congress refuses to do their jobs as legislators and fail to assign work to the president as they are meant to. I am also against any president trying to run things via executive order in a legislative vacuum, and based on current trends it seems the judicial branch agrees.
The point is not lowering the prices of third-party services and content for consumers (not directly, at least); it is, quite clearly and openly, to protect competition in digital markets. The idea is that greater competition ultimately benefits everyone (consumers and the economy at large), and that competition is harmed if a company can stifle competition in one market (streaming services, app stores etc.) by virtue of having a large share of another market (smartphones, in this case). It restricts the power of platform owners, which happen to be entirely non-European, thus benefitting the companies that compete with them in digital services and content… which happen to be predominantly non-European. Seeing protectionism in this edges on conspiracy theory territory.Potentially protectionist, in the sense that as you note, with the exception of Spotify, there are no significant European players in any of these roles, so this could be a way to force openings to maybe allow some in the future.
I don’t think a hope that the existing non-Apple apps would get their prices to consumers lowered if their devs didn’t have to pay fees to Apple (or would behave any better with respect to privacy protections and ads if they don’t come from Apple’s App Store) is particularly realistic (and I hope the EU promulgators of the DMA have that same view of reality), so I’m not really sure what other motivation there is.
Trying to appeal to some abstract sense of justice in a commercial marketplace with no real expectation for some kind of benefit for someone (other than the existing app developers’ interest in greater profit or lesser constraints) seems quixotic (or maybe regulating for the sake of regulating).
Per their calculator, I am not sure that's accurate. I mean accepting the new developer agreement would cause there to be a fee. Even if they never use a their own processor or another store. I believe the developer agreement applies to all the apps. So even toying with the store would cause there to be increased costs. Let's say Microsoft wanted to open an alternate store for Gamepass. They would now be paying thousands if not millions for all their free apps. I would assume we would see a lot of merging of apps. Like getting rid of the separate Office apps (Word, Excel, Powerpoint). Eh. Its how apple is motivating large companies to not create competing stores. All their "free" apps would cost them money, even if they never put them in their alternate stores.That 50 euro fee only applies IF they opt to distribute the app on their own app store as well as Apple's under the new fee structure. They can and will stick with the existing Apple App store only structure that doesn't include any changes in fees.
They were determined to have a large enough part of the market that regulation is needed to ensure there is not monopolistic practices. Apple built a device that allows it to sell add-ons. The government set the rules of the marketplace they wanna sell that device and those add-ons in. Apple is not required to participate in the EU market.I still struggle with the bigger issue:
Why is a company that makes a device forced to ”open it up” to alternate paths of sales for stuff that runs on said device? Ignoring that it’s Apple, a company build a device that allows it to sell add-ons. Just because it’s popular, does that give governments the right to dictate how it sells these add-ons? There are alternative devices consumers can buy. The term “walled-garden” gets tossed around but isn‘t that what capitalism is all about? Isn’t this similar to being forced into a subscription to use certain software (i.e. Excel) ? That pisses me off more...
I still struggle with the bigger issue:
Why is a company that makes a device forced to ”open it up” to alternate paths of sales for stuff that runs on said device? Ignoring that it’s Apple, a company build a device that allows it to sell add-ons. Just because it’s popular, does that give governments the right to dictate how it sells these add-ons? There are alternative devices consumers can buy. The term “walled-garden” gets tossed around but isn‘t that what capitalism is all about? Isn’t this similar to being forced into a subscription to use certain software (i.e. Excel) ? That pisses me off more...
Don't threaten me with a good time. Competing app stores would love to have all of the App Store catalog on their stores. Even the free apps.What about forcing third party app stores to provide everything that is free on the App Store for free on their stores as well?
Ah, so you side with the GOP & corporations like Apple and want to strip us of regulatory protections, got it. The current judiciary is infected by GOP hacks that Trump shoved in there that want to kill Chevron and strip away necessary protections and rights. We could kiss any hope of environmental protections goodbye, alongside constraints over corporate power, and taking down monopolies like Comcast and AT&T through Title II at the FCC, or any hope of the FTC toppling the monopolies of Google, Apple, Microsoft, and more. That's the kind of shithole you're arguing for when you say we should get rid of Chevron.
Yeah, agreed. Google and Apple work together to keep their duopoly. Windows Phone could've been good, but Google refused to make apps for Windows Phone and kept stringing Microsoft along and moving the goalposts for things like YouTube. Google signed off on/made YouTube apps for the damned WiiU and PS Vita in the same period of time that the Windows Phone was active, but decided Windows Phone was a no-go even though it would have had more staying power than those two gaming machines, especially when it became obvious they would be deemed failures. Requiring Microsoft to code the whole app in HTML5 was bullshit from Google, and everyone knew it. The company used the must-have nature of its apps to press their thumbs into Microsoft's eyes and keep a competitor from coming in.Competition law factors in the control a company has over a market. Even if there are other players, a large business may have significant control.
Apple and Google both control the smartphone market, which is a billion (trillion?) dollar industry. You can't do anything on the iPhone unless Apple allows it, and though Android offers alternatives, it's still in a dominant position that can be leveraged to push ads, collect data, and filter content. For much of the world, there are no alternatives. The biggest competitor is HarmonyOS, at a measly 3%. Good luck finding one.
Yeah, agreed. Google and Apple work together to keep their duopoly. Windows Phone could've been good, but Google refused to make apps for Windows Phone and kept stringing Microsoft along and moving the goalposts for things like YouTube. Google signed off on/made YouTube apps for the damned WiiU and PS Vita in the same period of time that the Windows Phone was active, but decided Windows Phone was a no-go even though it would have had more staying power than those two gaming machines, especially when it became obvious they would be deemed failures. Requiring Microsoft to code the whole app in HTML5 was bullshit from Google, and everyone knew it. The company used the must-have nature of its apps to press their thumbs into Microsoft's eyes and keep a competitor from coming in.
Google and Apple like the current phone market the way it is. They play off each other. Android is "open" with all the warnings for sideloading and all the Google tracking, and Apple is a walled garden where they have a stranglehold on everything. If you say you're fed up with one, then the fans of that one will tell you to swap to the other. The search engine deal that Google and Apple have with each other for iOS is another good piece of proof that they're a duopoly that's thick as thieves. I'd love to see the EU's competition authority and the U.S.'s FTC throw the book at them. But that can't happen if some people who are cheering for the killing of Chevron get their way.
i have yet to go looking for something that I can’t find in the App Store.In that case you would be affected by having less apps to choose from.
If you were a lifelong Democrat, you'd remember how back during the Net Neutrality debates, telecom think tanks would talk about how regulation wasn't the way, but rather legislation. Legislation that the telecoms could then fuck over by making it toothless via the Congresscritters they bribe.Trap card denied. I am a lifelong Democrat and have never voted for any Republican for any public office. Therefore you can stop right there with the knee-jerk dismissive histrionic and stupid assumptions that bring a bad name to all liberals.
Legislators and legislation cannot move at the speed and rate at which technology and situations evolve. This is true around the world. This is why we have regulatory agencies that can move faster than lawmaking bodies, and lawmaking bodies confer authority and power to those regulatory agencies to act on their behest.Are you saying that the nation is incapable of finding ANY leaders in a group of nearly 400 million people who are capable of writing clearer, updated laws?
I think the console business model is inherently anti-competitive, though from a practical perspective the anti-competitiveness here is not as important to deal with as in the general computing market.So, Nintendo is the sole outlier. If they're still implementing the game tax, they're a separate case.
Is the model anti-competitive in the case of consoles? We all agree the price of consoles must go up without this system. It's also accepted the number of consoles sold would go down without it, and so would the number of games. The difference in business models is partly what determines if a practice is anti-competitive. Without the current system, it's very likely there would be no Xbox or Playstation.
I wouldn't say it's badly written (outside of the arbitrary thresholds to determine who is a gatekeeper), it just wasn't designed to do what the likes of Spotify, Epic, Meta and Microsoft want which was give them free access to a major platform.THIS 100%. I’ve always maintained that the DMA is so poorly written that the EU will be forced to try and get a ton of amendments through to fix it because it just does not address anything in a successful manner. I think the biggest failure is its lack of anything addressing IP fees, which is what Apple categorizes all but the 3% payment processing part of their fees as. Nothing in the DMA restricts Apple from charging IP fees, and the I think the EU will have a hard time passing anything that restricts a company’s ability to charge for access to its intellectual property, especially as that could cause all sorts of geopolitical issues.
Though even if you had multiple stores on an iphone you still wouldn't get any price competition between them and that is because all major digital stores work on the agency model where the devs\publisher sets the price and the store takes a set cut - for example on PC the RRP price of a game on Steam, GOG, Epic, Microsoft Store (well that sometimes uses the higher console price) or publisher store is generally the same price. (Same thing with ebooks, music, movies).It really isn't, though. When you could buy all games on disc, stores would have sales independently from each other. There was some level of competition at the retail level, and in fact still is for games that are released on physical media, even if Microsoft gets a cut either way.
So with this basic reasoning for why regulation of gatekeepers is good and appropriate in general, should this also apply to consoles?
Even at the height of Windows dominance of computing, with Microsoft's most monopolistic practices, they never tried to impose the sort of control over Windows software developers that Apple imposes on iOS developers.
Part of me wonders just how hard the EU will actually fight against a lot of Apple’s restrictions since the DMA makes allowances for privacy and security and any they risk a lot of negative publicity if the changes they force lead to negative consequences. I mean the EU never hesitates to mouth off against big tech and yet they’ve been curiously quiet since Apple announced its changes. Not to mention these changes are supposedly the result of work done with regulators.I wouldn't say it's badly written (outside of the arbitrary thresholds to determine who is a gatekeeper), it just wasn't designed to do what the likes of Spotify, Epic, Meta and Microsoft want which was give them free access to a major platform.
It's also Epics fault that Apple have only deducted 3% for payment processing as they have spent the last few years loudly claiming that is all it costs, when a 5% deduction would have been a fairer amount as that is around what paypal and other payment processors charge. Though given Apple's scale there is a good chance it does only cost them 3% to process payments, and the EU don't really care if competitors cannot match that as the goal is to open the platform up for competition, but that doesn't mean prices will drop, and there is no chance the EU will tell Apple to charge more for payment processing unless they are shown to be charging below their costs which would be predatory pricing.
The thing the EU are most likely to object to are the restrictions Apple are putting on who can operate third-party stores.
I basically agree with this stance, which is why I said in my first paragraph "I think the console business model is inherently anti-competitive, though from a practical perspective the anti-competitiveness here is not as important to deal with as in the general computing market."You make very good points. But you also make a point that explains why the answer is "no":
As you note, the level of control over Android, iOS and consoles does not exist on PCs. The console and PC gaming markets currently share roughly equal percentages of the overall gaming market. A developer who doesn't want to pay the gaming tax can release for Linux, macOS, and/or Windows, and reach the same customers. So, while it's philosophically correct to open up consoles to competing stores, the lack of market control is what allows consoles to remain closed.
I don't think third party stores are available yet. To be clear I'm not saying this will happen, just that theoretically there are ways third party stores could affect people who choose not to use them.i have yet to go looking for something that I can’t find in the App Store.
Apple controls the iOS market. In the EU, Samsung alone outsells Apple, and when the other Android vendors are considered, It's tough to argue Apple controls the whole smartphone market.Competition law factors in the control a company has over a market. Even if there are other players, a large business may have significant control.
Apple and Google both control the smartphone market, which is a billion (trillion?) dollar industry. You can't do anything on the iPhone unless Apple allows it, and though Android offers alternatives, it's still in a dominant position that can be leveraged to push ads, collect data, and filter content. For much of the world, there are no alternatives. The biggest competitor is HarmonyOS, at a measly 3%. Good luck finding one.
Apple controls the iOS market. In the EU, Samsung alone outsells Apple, and when the other Android vendors are considered, It's tough to argue Apple controls the whole smartphone market.
Apple and Google both control the smartphone market
Apple controls the whole smartphone market
As written, the OP implied Apple and Google did so jointly. As the first sentence of my post states, Apple controls the iOS market, not the Android market.How, exactly, does:
Become:
I'm not, that's why we have regulators to write exactly what you are asking for. Asking a collection of ~550 elected people to be experts on everything (even if you multiply that by 10 to include their staff) is not reasonable. Especially so when you consider that someone may hold an elected position for as little as 2 years (assuming they don't leave early). There is no reason to think an elected official should be expert enough to decide what requirements there should be for automotive lighting (49 CFR 571.108) (even if I disagree with the current regulations, I don't think it is elected officials who should change it).Are you saying that the nation is incapable of finding ANY leaders in a group of nearly 400 million people who are capable of writing clearer, updated laws?
And yet we've spent the last 250 years interpreting and arguing what they "meant" sometimes with 180 degree change in interpretation from a prior decision. So no the handful of guys didn't make a new government with no room for interpretation.Only the laziest and most intellectually dishonest type would go to such lengths to ignore the core of my argument the way you did. Again, as I have argued from the START of this comments section, WRITE CLEAR LAWS. If a handful of guys 250 years ago could peel a whole territory off a monarchy, found a nation, and write an entirely new system of government, perhaps you can get to work and help create some document that pragmatically handles a goddamned App Store and clarifies what an agency’s scope is.
Dont fall for it. Apple and Android are pretty much the same, as far as privacy goes -- Android is more secure than people think (and can be made totally locked down with variants) and iOS is less secure than people think (one single OS to attack, no transparency, not open source). But by default, they're really not different. Apple just markets more, but in typical Apple fashion, they give no details...Meta wants an alternative App Store so they can once again collect more information.
I do not believe that the App Store is a monopoly. Apple's offering is a top-to-bottom solution. If I wanted a free-for-all privacy nightmare, I'd use android.
the real crux of the problem is defining the market. Apple does not have a monopoly on smartphones. Developers can reach the same amount of customers with Android.
I won't be buying an app on my phone unless it comes from the App Store.
So you also remember that the net neutrality being overturned willy-nilly just because the FCC changed hands under Trump, right?If you were a lifelong Democrat, you'd remember how back during the Net Neutrality debates, telecom think tanks would talk about how regulation wasn't the way, but rather legislation. Legislation that the telecoms could then fuck over by making it toothless via the Congresscritters they bribe.
"This isn't a problem that regulation can solve, this is a problem that Congress needs to solve!" has been a key GOP and corporate asshat talking point for ages. And one that you willfully parrot, alongside your opinion that killing Chevron would be a good idea.
Legislators and legislation cannot move at the speed and rate at which technology and situations evolve. This is true around the world. This is why we have regulatory agencies that can move faster than lawmaking bodies, and lawmaking bodies confer authority and power to those regulatory agencies to act on their behest.
You also seem to be a bit ignorant about how regulations work. Sometimes regulators write the regulations to the best of their ability and then the affected industries get out their pencils (and lawyers) and look for ways to meet the letter even if not the intent of the regulation (assuming they don't just fight it in court instead). Then ideally the regulations are revised to close the loop holes. That's how it should work. And to head off the predicted, "they should get it right the first time, then" argument I'll just counter with if that's true then programmers shouldn't need debuggers and writers shouldn't need editors. Regulators are still human and make mistakes and miss things, meanwhile businesses can get surprisingly creative to save a few dollars.
I take issue with this unbalanced stance. Because this results in tactics like monopolization, achieved through aggressiveness such as bullying and crushing the smaller ones underneath them. First they strangle the 3rd party developers of any real finance, no matter how amazing their app is or how well it sells, then they buyout that developer and it's assets if it does amazingly well to further bolster their overlord position. Any that do not sell up that are proving to be popular, are then crushed underfoot instead by copying their idea with an alternative but slightly different program from the big guys at the top, who then abuse their power over the ecosystem to push the small guy who was unwilling to sell into obscurity in the store whilst slapping their own competing product into the limelight with aggressive advertising and large banners.No, if you want things to happen a certain way, you write CLEAR, SPECIFIC laws. You don't sanction someone because you wrote sloppy legislation. Also, let's not pretend that the core technology fee concept is something new. Dev tools used to cost a fortune. Furthermore, the commission charged by Apple makes sure that things like free apps can be hosted, delivered, and handled for nothing. If you want to pull that money from the pipeline, then perhaps Apple should just stop allowing free apps altogether. Those resources don't appear out of thin air.
The size of Apple's bank account is not relevant. They are allowed to be as greedy as they want, because they are a for-profit corporation and the market (and consumers like you) decided to buy their products and Android phones instead of options from MS, Blackberry or anything running Symbian for years. You are not entitled to a single thing from them for free, or for a penny less than they ask of you, because you are perfectly capable of buying from another vendor, and your life is in no way in jeopardy or fundamentally impaired simply because you may have to live without an Apple-branded phone.
If you were a lifelong Democrat, you'd remember how back during the Net Neutrality debates, telecom think tanks would talk about how regulation wasn't the way, but rather legislation. Legislation that the telecoms could then fuck over by making it toothless via the Congresscritters they bribe.
"This isn't a problem that regulation can solve, this is a problem that Congress needs to solve!" has been a key GOP and corporate asshat talking point for ages. And one that you willfully parrot, alongside your opinion that killing Chevron would be a good idea.
Legislators and legislation cannot move at the speed and rate at which technology and situations evolve. This is true around the world. This is why we have regulatory agencies that can move faster than lawmaking bodies, and lawmaking bodies confer authority and power to those regulatory agencies to act on their behest.
The reason antitrust in the U.S. is fucked is for two reasons: Reagan and Bork fucked us over by enshrining the bullshit Consumer Harm Standard as practice within the antitrust regulatory framework through the years. And corporate lobbyist scumbags keep scuttling that much-needed antitrust legislation.So you also remember that the net neutrality being overturned willy-nilly just because the FCC changed hands under Trump, right?
FCC has the authority to regulate, but how often must back-and-forth like that happen for people to get that codifying it somewhere is a good idea?
I am not American so maybe I’m wrong interpreting it, but a quick skim of Wikipedia says a lot of states agree and have written their own laws.
As for antitrust: if you want something different that the current laws say and precedents give you and go on to sue and/or fine anyways, you are going to lose in court, as the FTC is learning in the hard way.
You do not run to referee to bicker what rules you want to get changed. Similarly, you don’t run to the court to beg the question that who should lose with the currently laws not working in your favor; you run to congress/the EC or whatever for new laws.
As I said, I take issue with how the DMA propose to regulate and the arbitrarily chosen limits and categories, but EU is totally correct on creating a new law instead of using old ones with poor fit.
Edit: mixed up FCC and FTC in the first half.
I think it's also telling that it's only the big companies who are complaining. You don't exactly hear tech blogs post about what the common man on the street thinks, and maybe that's the whole point.