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Rogifan

macrumors Penryn
Nov 14, 2011
24,252
31,336
Ah yes, we can’t know everything that’s for sure!

What do we know in this case?

1. They installed Netflix from the App Store
2. They were not a Netflix customer
3. They want to sign up for Netflix

Not seeing any way to do this, they might open a browser and go to Netflix.com. Or they might swipe over to Instagram. Or they might…well you get the idea.

Under the new model, they will see a link that takes them to the Netflix sign up page in Safari. They are much more likely to sign up for Netflix.

For this REFERRAL to Netflix, they would owe Apple the App Store commission. But only if they actually sign up.

Sounds like a win.
But most likely it wasn’t an Apple referral that made them download the app in the first place. They heard about a show from friends or on social media. It certainly wasn’t Apple promotion. Why would Apple be promoting Netflix content when they have their own streaming service?

The fact that someone has to sign up for a Netflix subscription before the app becomes functional has nothing to do with Apple.
 

gatorvet96

macrumors regular
Apr 21, 2016
228
643
What compensation does Apple get for macOS apps? Microsoft for Windows apps?
Because that was the old system they decided on when they created MacOS and Windows. Software at the time was not digitally downloaded and always purchased from brick and mortar stores. iOS, Playstation, Android, Amazon devices, Kindle all came around when only digital installs were around (exception is the older Playstation/XBOX that people bought disc - but Sony and Microsoft still get paid licensing fees for discs I believe) and all of the above get a cut for digital downloads on their systems. Of course the brick and mortar companies also got a cut for selling software. There is NO free-ride for having your product sold, NOR should there be.

BTW, Apple pays a portion of their hardware sales, gift card sales etc in both online stores and brick-and-mortar stores. They also can't advertise at Best Buy that they should buy it directly from Apple. This argument is nonsense.
 

mvwoensel

macrumors member
Jan 23, 2024
49
552
Here we go again with the ad hominem comments. Just because these companies are behaving bad themselves doesn't mean they're not right with their arguments against Apple's behavior. The motion to enforce from Epic and the amicus brief from the other companies make sense. I recommend that everyone here actually reads them.


 
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BuffaloTF

macrumors 68000
Jun 10, 2008
1,772
2,234
So if I go to Netflix’s website via Safari and sign up for a subscription Apple gets nothing but if I click a link in the app that takes me to their subscription page Apple gets 27%? Why?
They carved out the payment processing, which they never contended amounted to anything more than 3%. The rest was itemized, core technology (development of the system and APIs), accounting and tax services. This is why you see only the giant corporations having a fit. They have silos defending their existence within the company in their own treasury/accounting/finance teams. For the average developer, it’s a steal.
 
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GroovyCatticus

Suspended
Jun 2, 2022
306
268
But most likely it wasn’t an Apple referral that made them download the app in the first place. They heard about a show from friends or on social media. It certainly wasn’t Apple promotion. Why would Apple be promoting Netflix content when they have their own streaming service?

The fact that someone has to sign up for a Netflix subscription before the app becomes functional has nothing to do with Apple.
Ah, but the fact is they *didn’t* sign up before, and the app has referred them.

We can’t know why they didn’t sign up before, but the act of taking the link out and signing up is a direct cause/effect no matter how unlikely you want it to be.

Netflix could always switch to in app purchase if they want the best experience for their users!
 
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contacos

macrumors 601
Nov 11, 2020
4,764
18,482
Mexico City living in Berlin
Speaking of Meta. Why is Apple making such a big deal out of the Epic Store yet you can buy games, using Metas own payment options in the Meta Quest App? Shouldn’t this also require IAP? (It doesn’t)
 

dannyyankou

macrumors G5
Mar 2, 2012
13,053
28,098
Westchester, NY
Their current 30% cut is ridiculous. It should be 90%.

Because Apple doesn't have enough money.
Ok, but the only issue is that Apple is a private company. The government can't force Apple to charge a certain amount. I agree with the part about Apple being anticompetitive with the anti steering, but if a developer doesn't like the terms of a platform, they don't have to use it.

Edit: I don't mean privately owned, I mean they operate and make business decisions on their own.
 
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patlee2000

macrumors newbie
Oct 4, 2016
26
56
Texas, USA
I don't know why more companies wouldn't join up to fight the anti competitive behavior.
Apple's rules mostly impact big corporations trying to maximize profits and keep shareholders happy. These restrictions help level the field for smaller developers like me. Without them, giants like Microsoft could exploit loopholes and crush competition.
 
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dandy1117

macrumors regular
Sep 18, 2012
142
346
But most likely it wasn’t an Apple referral that made them download the app in the first place. They heard about a show from friends or on social media. It certainly wasn’t Apple promotion. Why would Apple be promoting Netflix content when they have their own streaming service?

The fact that someone has to sign up for a Netflix subscription before the app becomes functional has nothing to do with Apple.
Apple frequently promotes Netflix in the App Store using editorials, App Store user rankings, and recommendations aimed at new iPhone users.

However, if we assume that Netflix is capable of acquiring all its customers independently and without any aid from Apple, would that not render their complaint about being required to pay a commission to Apple for providing sign-up links in their iOS apps null and void? In this scenario, Netflix could advertise on various platforms such as social media, podcasts, television, and print ads, and direct potential customers to sign up on their website at netflix.com. And after sign-up immediately send the new user a link to the App Store to download the app and login.
 

crsh1976

macrumors 68000
Jun 13, 2011
1,580
1,789
Exactly how are they making money off of Apple’s platform? There’s obviously a reason Apple doesn’t require they offer IAP and allows them to offer a non-functioning app for download. They didn’t allow Hey to do this so Hey had to offer something for free in order to stay on the App Store.
It's a functioning app if you can log in and get access to whatever you're paying for outside of Apple's ecosystem, - there's no issue with that because, as you put it, Apple doesn't require paying services to put IAP in their iOS apps.
 

vipergts2207

macrumors 601
Apr 7, 2009
4,330
9,658
Columbus, OH
Because that was the old system they decided on when they created MacOS and Windows. Software at the time was not digitally downloaded and always purchased from brick and mortar stores. iOS, Playstation, Android, Amazon devices, Kindle all came around when only digital installs were around (exception is the older Playstation/XBOX that people bought disc - but Sony and Microsoft still get paid licensing fees for discs I believe) and all of the above get a cut for digital downloads on their systems. Of course the brick and mortar companies also got a cut for selling software. There is NO free-ride for having your product sold, NOR should there be.
Even today, long after digital downloads became the norm, I can still release software on macOS and Windows without paying them a commission every time somebody buys my app or subscribes to my service.
BTW, Apple pays a portion of their hardware sales, gift card sales etc in both online stores and brick-and-mortar stores. They also can't advertise at Best Buy that they should buy it directly from Apple. This argument is nonsense.
Difference being that Apple isn't forced to go through Best Buy to get to me as a consumer. A developer cannot get to me on my iOS device without going through Apple.
 

bcortens

macrumors 65816
Aug 16, 2007
1,250
1,607
Ontario Canada
You know what would improve usability even more?

In App Purchase!

But Netflix doesn’t care about that as much as the $$$.

Their choice — just like the link out 🤷🏻‍♂
This comes back to the core issues I have with Apple and the way they try and gain a piece of all transactions that occur on iOS even those they do not facilitate. I don't think they are entitled to a fee just because there is a link in the App. The difference between an App with either a link in the app or not is so trivial to the API side of things it isn't worth mentioning. The rule exists solely to make linking out less desirable and thus developers stay away from the option and thus the apps are worse. Apple is practicing en********ation to protect revenue they don't even make! They aren't even making this money because Netflix doesn't put a link in the app right now anyway. They are fighting and dying on this hill for no good reason.
 

BuffaloTF

macrumors 68000
Jun 10, 2008
1,772
2,234
They should have a subscription or a one time fee for using the development tools just like Visual Studio or any commercial IDE out there.

But get millions from every install or in app purchase is just totally wrong. Unity tried this stuff too and they had too oust their CEO, fire hundreds of people and walk back on that because of developer rebellion.

Making the tools does not entitle you to bully developers. Especially when competition for the development tools is not allowed, which is why this whole discussion came from in the first place.

Apple can do what they want but in the EU they will bend eventually. They basically do 1000 things except the only thing that they have to for the law: stop gatekeeping and force everything to go through them. That is exactly the whole point.

Epic charges 5% licensing rights after reaching 1 million USD in gross sales of anything using Unreal. 1 million in gross sales isn’t a very high number for games that sell for 70 dollars. That’s like, any game that sells 15,000 copies has to pay 5%.

What’s different here? Why the double standard? Jedi: Fallen Order sold 10 million copies at 60 dollars a pop. That’s 600 million in gross revenue. So Epic made 30 million off 1 game. That’s wrong by your logic presented here.
 
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bcortens

macrumors 65816
Aug 16, 2007
1,250
1,607
Ontario Canada
They carved out the payment processing, which they never contended amounted to anything more than 3%. The rest was itemized, core technology (development of the system and APIs), accounting and tax services. This is why you see only the giant corporations having a fit. They have silos defending their existence within the company in their own treasury/accounting/finance teams. For the average developer, it’s a steal.
As has been brought up in multiple threads, Apple doesn't charge for API access equally, only apps that offer digital goods are charged and only if they want to mention those digital goods in app. If they sell the same goods for the same app outside of the app, all hunky dory, no payment necessary. The app doesn't meaningfully change by letting them link out to a website. The API access doesn't change. This is why this argument is mostly nonsense and I think the EU and US should look at this argument and throw it out on the grounds that Apple doesn't actually treat it this way. They might claim this is the reason for the commission but they don't actually bother to collect a commission from many many many many apps that use their services.
 
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vipergts2207

macrumors 601
Apr 7, 2009
4,330
9,658
Columbus, OH
Ah, but the fact is they *didn’t* sign up before, and the app has referred them.

We can’t know why they didn’t sign up before, but the act of taking the link out and signing up is a direct cause/effect no matter how unlikely you want it to be.

Netflix could always switch to in app purchase if they want the best experience for their users!
Referred to them? That's a stretch. For something like Netflix a user probably manually searched for it.
 

vipergts2207

macrumors 601
Apr 7, 2009
4,330
9,658
Columbus, OH
Epic charges 5% licensing rights after reaching 1 million USD in gross sales of anything using Unreal. 1 million in gross sales isn’t a very high number for games that sell for 70 dollars. That’s like, any game that sells 15,000 copies has to pay 5%.

What’s different here? Why the double standard?
A developer can reach Windows users through multiple avenues outside of the Epic store.
 
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bcortens

macrumors 65816
Aug 16, 2007
1,250
1,607
Ontario Canada
Not really. The judge specifically said that Apple was able to collect it's commission in the ruling.
That technically isn't true, she allowed that Apple could collect payment for its IP but declined to comment on the specific amount of the commission. It also isn't clear that her comments that payment for IP being allowed is something Apple can collect via commission on payments processed via an external website.

This is all speculation, I think that given the number of companies against Apple in this case at least provides some doubt that charing a commission on transactions that occur outside of the App Store is legal.
 

GroovyCatticus

Suspended
Jun 2, 2022
306
268
This comes back to the core issues I have with Apple and the way they try and gain a piece of all transactions that occur on iOS even those they do not facilitate. I don't think they are entitled to a fee just because there is a link in the App. The difference between an App with either a link in the app or not is so trivial to the API side of things it isn't worth mentioning. The rule exists solely to make linking out less desirable and thus developers stay away from the option and thus the apps are worse. Apple is practicing en********ation to protect revenue they don't even make! They aren't even making this money because Netflix doesn't put a link in the app right now anyway. They are fighting and dying on this hill for no good reason.
It’s clear that Netflix and Spotify should contribute more than $99 per year to support the iOS ecosystem — I’m sure that’s Apple’s view 😉

Without a way to do so under the current App Store rules, Apple won’t give an inch to make it easier for them to collect $ on iOS as they have chosen to abandon in app purchase.

And really, why should they?
 
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haydn!

macrumors 65816
Nov 10, 2008
1,272
1,844
UK
This has been on the cards since it was announced, it is an excessive amount of commission - very clearly designed to put developers off from going outside the App Store.

But what I’m curious to understand is what is a better alternative? A higher up front cost for a developers kit access seems like an obvious answer but then how do you do that without penalising your start-ups and amateurs. Charge per seat? (do they do that right now?).

Curious to see what alternatives these companies would propose as totally free access to iOS and its toolset is arguably as unreasonable as the commission.
 
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BuffaloTF

macrumors 68000
Jun 10, 2008
1,772
2,234
A developer can reach Windows users through multiple avenues outside of the Epic store.
And they get charged 5% no matter what store it’s sold through. This has nothing to do with the store, everything to do with charging a licensing fee for Unreal Engine… like what Apple is doing for their core technology fees.
 

bcortens

macrumors 65816
Aug 16, 2007
1,250
1,607
Ontario Canada
Ah yes, we can’t know everything that’s for sure!

What do we know in this case?

1. They installed Netflix from the App Store
2. They were not a Netflix customer
3. They want to sign up for Netflix

Not seeing any way to do this, they might open a browser and go to Netflix.com. Or they might swipe over to Instagram. Or they might…well you get the idea.
So far I'm with you but the user experience would be better if there was a button in the Netflix app that said, "Sign up here"
Under the new model, they will see a link that takes them to the Netflix sign up page in Safari. They are much more likely to sign up for Netflix.
No they won't because Netflix isn't going to give up 27% of each new subscription for the privilege of including a link.

For this REFERRAL to Netflix, they would owe Apple the App Store commission. But only if they actually sign up.

Sounds like a win.
Since this referral isn't going to happen Apple gets no commission, so the only thing that this new rule is going to change is that the user experience is going to continue to be bad but Apple gets to pretend they complied with the ruling.
 

GroovyCatticus

Suspended
Jun 2, 2022
306
268
Referred to them? That's a stretch. For something like Netflix a user probably manually searched for it.
Umm a link from the app to a Netflix payment page is literally a referral.

If the user signs up, they would pay the commission. That’s a referral.

Or Netflix could use in app purchase for a better user experience.
 

GroovyCatticus

Suspended
Jun 2, 2022
306
268
So far I'm with you but the user experience would be better if there was a button in the Netflix app that said, "Sign up here"

No they won't because Netflix isn't going to give up 27% of each new subscription for the privilege of including a link.


Since this referral isn't going to happen Apple gets no commission, so the only thing that this new rule is going to change is that the user experience is going to continue to be bad but Apple gets to pretend they complied with the ruling.
Pretend is not accurate. They provided a link out mechanism to handle external payment processing.

Netflix is making their own business decisions about abandoning in app purchase or forgoing the link out.
 

bcortens

macrumors 65816
Aug 16, 2007
1,250
1,607
Ontario Canada
It’s clear that Netflix and Spotify should contribute more than $99 per year to support the iOS ecosystem — I’m sure that’s Apple’s view 😉

Without a way to do so under the current App Store rules, Apple won’t give an inch to make it easier for them to collect $ on iOS as they have chosen to abandon in app purchase.

And really, why should they?
They could just add the CTF (or a better version of it anyway) to the App Store worldwide...
 
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