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M3gatron

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In that vein, good for you that you figured out a civic can replace a Ferrari. But there may not be the same experience.
Yeah, the Civic is way more practical as a car. The experience doesn't need to be the same, what it has to do is just satisfy the same basic needs.
 
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I7guy

macrumors Nehalem
Nov 30, 2013
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Gotta be in it to win it
Well, a Ferrari is an EU product. iPhones are just another random luxurious phone brand that can be replaced by another luxurious brand or store.
Sure many products are replaceable with other functionally equivalent but not similar products(ie a Rolex gold watch performs the same function as a $10 timed), some however, are better than others in objective and subjective ways.
 

I7guy

macrumors Nehalem
Nov 30, 2013
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Gotta be in it to win it
Yeah, the Civic is way more practical as a car. The experience doesn't need to be the same, what it has to do is just satisfy the same basic needs.
I disagree. I believe to many the experience matters. To others the most basic of functionality is all that’s needed. The original point of all this “how many angels can fit on the head of a pin” tap-dancing is if one wants in on the apple ecosystem than an iPhone is centra and cannot be replaced by an android. Obviously one side doesn’t fit all as iOS has a global minority share of the cell phone market operating system but Samsung as a manufacturer leads the charge.
 

jlc1978

macrumors 603
Aug 14, 2009
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Charging for downloads will very likely be infinitely cheaper than paying 15% of revenue to apple. Microsoft takes 0% for non gaming applications on the Microsoft store. Pay per use is a more fare model.

While charging per download my be cheaper, the upfront costs of paying for it, or waiting to get paid until all d/l charges are paid will be a financial burden for small developers. A free app that relies on IAP or advertising may make a lot less money in such a model if it is d/l alot.

EU developers pay their taxes and VAT separately not including in their cut.

I never said Apple paid them from their cut, just they ensure compliance with local tax regimes in many jurisdictions. A small developer probably could not afford to track what was sold where, remit the proper amount of tax or VAT and sell to all the jurisdictions the App Store makes their app available. Paying someone would put a big dent in tehir profits; alternativel they'd have to limit where tehy sold an app to a sall enough audience to b able to stay compliant with tax laws.

And if apple want to hurt small developers and chase them away it’s their business choice, might incentivize good competition with alternatives stores such as Epic store and Steam to take apple market share

Th eproblem is most users have never heard of EPIC or Steam, which means teh potential audience will be much smaller as well as more games oriented.

GDPR Willa till apply. EU wants to implement apples AppStore data policy for the whole web. But more strict.

However, once Apple provides the data as required by the law they no longer are liable for what happens after that. A win for them. They could give it to a non-EU entity in which case the GDPR is no longer applicable.
 
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djphat2000

macrumors 65816
Jun 30, 2012
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EU will take a big economic hit not Apple? That's funny. EU's overall GDP is over 17 trillion/ year. Apple's business in Europe is just a drop in a bucket by comparison. Not to mention apple sells goods that are easily replaceable by goods from other companies. EU is not Botswana, Apple has no power to threaten EU in any way.
So why all the fuss about Apple being a duopoly/gatekeeper blah blah? Clearly they wouldn't hurt the EU to leave it. And, more importantly. They are easily replaceable by goods from other companies. Kind of defeats the whole purpose of what they are saying.
 
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Sophisticatednut

macrumors 68020
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While charging per download my be cheaper, the upfront costs of paying for it, or waiting to get paid until all d/l charges are paid will be a financial burden for small developers. A free app that relies on IAP or advertising may make a lot less money in such a model if it is d/l alot.
Depends, if it’s at cost it can be Pennie’s on the dollar, and will more likely pay for the past month as you do with utility bills. And if it’s many downloads it likely makes more money from IAP and advertisements.
I never said Apple paid them from their cut, just they ensure compliance with local tax regimes in many jurisdictions. A small developer probably could not afford to track what was sold where, remit the proper amount of tax or VAT and sell to all the jurisdictions the App Store makes their app available. Paying someone would put a big dent in tehir profits; alternativel they'd have to limit where tehy sold an app to a sall enough audience to b able to stay compliant with tax laws.
Eu local tax law apple doesn’t help local developers with anything. You can use one member state to declare all VAT. And bellow 10.000€ Per country it’s except anyway. Or just use any random EU payment service like stripe as an included service for free
Th eproblem is most users have never heard of EPIC or Steam, which means teh potential audience will be much smaller as well as more games oriented.
Nothing some commercials can’t fix.
However, once Apple provides the data as required by the law they no longer are liable for what happens after that. A win for them. They could give it to a non-EU entity in which case the GDPR is no longer applicable.
Every entity operating in EU must follow GDPR. Apple can’t just provide info on EU consumers to non EU entities. This would violate EU privacy laws and GDPR
 
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M3gatron

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So why all the fuss about Apple being a duopoly/gatekeeper blah blah? Clearly they wouldn't hurt the EU to leave it. And, more importantly. They are easily replaceable by goods from other companies. Kind of defeats the whole purpose of what they are saying.
Well then, Apple can just leave the EU market.
EU does what it sees fit it, imposes new regulation, it doesn't kick out companies.

And of course a company that sells gadgets and common goods leaving the market won't affect EU economically especially since most of the presence Apple has in the EU is only directed at selling stuff.
 
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jlc1978

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Depends, if it’s at cost it can be Pennie’s on the dollar, and will more likely pay for the past month as you do with utility bills. And if it’s many downloads it likely makes more money from IAP and advertisements.

However, it still puts the risk on the developer for expenses prior to actually earning money; and every update would cost money. And that's just one thing Apple could charge for, they could charge for signing apps, etc.

The question for smaller developers is can they afford the risk of upfront costs for an app that may not recoup the investment or get heavily pirated?

I have seen articles that state Android apps are free on while are paid on iOS simply becasue priacy on Android means no money, so free with ads/IAP is the only way to make money.

Eu local tax law apple doesn’t help local developers with anything. You can use one member state to declare all VAT. And bellow 10.000€ Per country it’s except anyway. Or just use any random EU payment service like stripe as an included service for free
A developer who uses Stripe likely will have to raise prices if the have a $1.00 app as Stripe charegs a fixed fee (.30cents) plus 2.9% for each transaction. That already puts them at a disadvantage to Apple's flat 30% even before and alternative App Store cut or costs of self hosting; forcing them to either make less per sale or raise prices. Given users expect cheap apps that could be roblemattic, especially for games.

That's fine, as long as the developer wants to be EU only. In addition, Stripe apparently requires the developer to register and file/pay taxes, they just provide a report, for an additional .5% Conceivably a developer that wants to sell in the US would have to register in 50+ locations and file and pay each month; with a different form and reporting requirements. They could ignore it but could eventually wind up getting fined. If they register, failure to submit a report, even when no taxes due, can result in a fine.

The question for a small shop is is it worth the trouble to save a few percentage points?

I'm not saying this will be bad for users or developers, just there are a lot of uncertainty on how it may play out and impact smaller devs that lack the funds to pay upfront, do a lot of book keeping to keep in tax compliance, deal with multiple stores, etc. I suspect many will stick with the App Store simply because of its large customer base and lower upfront costs. The big players may go it alone since they have the $$$ to do it.

Nothing some commercials can’t fix.

Where? TV? How do you cost effectively reach users? In app ads might work, but how effective are they? Will users of Candy Crush open an add for an alternate apps store? Even care about it?

Every entity operating in EU must follow GDPR. Apple can’t just provide info on EU consumers to non EU entities. This would violate EU privacy laws and GDPR

However, sideloading could make it a lot easier for a company that has no EU presence get EU users who d/l the app from a non-EU server and hoover up their data without violating the GDPR since they are not operating in the EU. The EU may object but if they have no presence in the EU there is no one to go after; and Apple is complying with EU law by allowing the app to collect data without interference.
 
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Razorpit

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Yeah, I mean EU is a democracy, it doesn't care about "restricting access and controlling content" online, like China, Russia, North Korea for example.
His argument doesn't make sense.
They got you hook, line, and sinker. No government cares what you’re saying or doing until you start threatening their power structure. Just some have a tighter definition of “threaten“ than others.
 

M3gatron

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They got you hook, line, and sinker. No government cares what you’re saying or doing until you start threatening their power structure. Just some have a tighter definition of “threaten“ than others.
Oh the old conspiracy theory enthusiasts that know everything including all the deepest secrets in this world.
 

Sophisticatednut

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However, it still puts the risk on the developer for expenses prior to actually earning money; and every update would cost money. And that's just one thing Apple could charge for, they could charge for signing apps, etc.
The 99$\year Includes the signing of the app. You pay your electricity bill after it’s used. Same can be for developers.
The question for smaller developers is can they afford the risk of upfront costs for an app that may not recoup the investment or get heavily pirated?
They can make that choice or use apples IAP system for peace of mind.
A developer who uses Stripe likely will have to raise prices if the have a $1.00 app as Stripe charegs a fixed fee (.30cents) plus 2.9% for each transaction. That already puts them at a disadvantage to Apple's flat 30% even before and alternative App Store cut or costs of self hosting; forcing them to either make less per sale or raise prices. Given users expect cheap apps that could be roblemattic, especially for games.
Stripe is just an example. Developers can use apples IAP solution for <2$ purchases and provide their own as an alternative next to it for 2>$
That's fine, as long as the developer wants to be EU only. In addition, Stripe apparently requires the developer to register and file/pay taxes, they just provide a report, for an additional .5% Conceivably a developer that wants to sell in the US would have to register in 50+ locations and file and pay each month; with a different form and reporting requirements. They could ignore it but could eventually wind up getting fined. If they register, failure to submit a report, even when no taxes due, can result in a fine.
Registering taxes is done in your home nation as any normal company. There’s no fine for you to get. You can earn 10.000€ in every eu nation before you need to collect local VAT. Eu is nowhere close as complicated as the USA when it comes to tax law
The question for a small shop is is it worth the trouble to save a few percentage points?
Up to them to decide.
I'm not saying this will be bad for users or developers, just there are a lot of uncertainty on how it may play out and impact smaller devs that lack the funds to pay upfront, do a lot of book keeping to keep in tax compliance, deal with multiple stores, etc. I suspect many will stick with the App Store simply because of its large customer base and lower upfront costs. The big players may go it alone since they have the $$$ to do it.
That’s the wonder of choice and competition. They can choose whatever fits them best. And consumers can chose what they like most.
Where? TV? How do you cost effectively reach users? In app ads might work, but how effective are they? Will users of Candy Crush open an add for an alternate apps store? Even care about it?
Steam is Nr:1 on PC and Mac. Epic will do a lot of commercial to attract iOS users obviously etc. it’s up to them what they do.
However, sideloading could make it a lot easier for a company that has no EU presence get EU users who d/l the app from a non-EU server and hoover up their data without violating the GDPR since they are not operating in the EU. The EU may object but if they have no presence in the EU there is no one to go after; and Apple is complying with EU law by allowing the app to collect data without interference.
Luckily it’s not that simple. A company with EU customers must by law follow EU law.

I recommend you read GDPR laws. You will automatically violate them if you try to do do as you described. Eu have data and legal agreements with USA etc making them follow EU law by mandate. Hence why Facebook threatened to leave after a US/ EU data agreement was made illegal by the EU Supreme Court

And here you have GDPR law. Many websites block EU users because they don’t comply with GDPR
 

M3gatron

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Hey whatever old ad hominem floats your boat, go for it. Doesn't change reality.
Right back at you.
You haven't stated any reality actually, unlike me. The simple fact is EU is a democracy and it doesn't care about "restricting access and controlling content".
 

jlc1978

macrumors 603
Aug 14, 2009
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The 99$\year Includes the signing of the app. You pay your electricity bill after it’s used. Same can be for developers.

Until or if Apple decides to change the way it charges based on new regulations. Nothing says Apple can't deaggregate it's fees.

They can make that choice or use apples IAP system for peace of mind.

True.

Stripe is just an example. Developers can use apples IAP solution for <2$ purchases and provide their own as an alternative next to it for 2>$

Registering taxes is done in your home nation as any normal company. There’s no fine for you to get. You can earn 10.000€ in every eu nation before you need to collect local VAT. Eu is nowhere close as complicated as the USA when it comes to tax law

Up to them to decide.

Thta's fine if you only want to sell in the EU. If you sell in others then you are subject to their tax regime.

That’s the wonder of choice and competition. They can choose whatever fits them best. And consumers can chose what they like most.

Steam is Nr:1 on PC and Mac. Epic will do a lot of commercial to attract iOS users obviously etc. it’s up to them what they do.

It will be intersting to see what they do and what impact they may have.
Luckily it’s not that simple. A company with EU customers must by law follow EU law.

I recommend you read GDPR laws. You will automatically violate them if you try to do do as you described.

Actually, no. The GDPR does not apply to non-EU companies that have no presence in the EU and do not offer goods and services there. Your example was for an Irish sub of a US company, Facebook. That's different than a company that has no nexus in the EU but simply has an EU national d/l a program from a non-EU location. Merely having a user from EU does not automatically require a company to follow EU law; any more than a EU company must abide by foreign nation laws because they have users there.

Eu have data and legal agreements with USA etc making them follow EU law by mandate. Hence why Facebook threatened to leave after a US/ EU data agreement was made illegal by the EU Supreme Court

Facebook had operations in the EU, which clearly makes teh GDPR applicable. However, even the EU admits the GDPR's extraterritorially has not been tested. (See para 2)

The key part is the GDPR states that the law applies to organizations outside the EU if they:

  1. offer goods or services to people in the EU or
  2. monitor the online behavior of people in the EU
If a company dos not "offer goods or services to people in the EU" than any data it collects from a transaction is not subject to the GDPR. An EU resident obtains a program from a US company that does not market to the EU would not be protected by the GDPR; or protected when they are not in the EU from monitoring.

Selling on the App Store in the EU clearly invokes case 1 since you are marketting there; selling on a 3rd party store may not.

It's not a simple case of the GDPR is always applicable; if it were I would be protected even though much of my time is outside the EU.

My point is simple: The new EU law proposal has ramifications beyond just making it asier for developers to sell products at perhaps a lower cost. It will introduce complexities that can increase tehir costs or subject them to legal actions that the current model doesn't.

And here you have GDPR law. Many websites block EU users because they don’t comply with GDPR

True, becasue they want to avoid any possible connection. However, it would still be possible, with a VPN, for an EU resident to access them, and teh company would not be covered by the GDPR because they are clearly not marketting to them and have no way of knowing the location is within the EU. D/L a program not available in the EU by using a VPN would, IMHO, shield a company from the GDPR; as would blocking access to servers if they see you're connecting from an EU IP address.

Again, it's a complex issue that really hasn't been clearly decided. Would a US court enforce an EU court order relative to the GDPR? Who knows, and it would no doubt hinge on the specifics, just as an EU court may not enforce a US decision to provide data simply due to existing EU/US agreements and mandates.
 
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