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patlee2000

macrumors newbie
Oct 4, 2016
26
56
Texas, USA
Their current 30% cut is ridiculous. It should be 90%.

Because Apple doesn't have enough money.
It's a 15% cut for developer making less than $1M/year after year 2 (which is most) and 30% for the ones above.

The one thing that people neglect is the service Apple provides to developers. You can submit your app to virtually every country in the world and across multiple OS. Apple handles all international transactions, taxes, changing laws, billing, subscription cancellation and refunds just to name a few. And I'm not even mentioning all the new tools that they create and provide to app makers every year. There is literally no upfront money you have to put up to create an app, (which is a business).
 
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BaldiMac

macrumors G3
Jan 24, 2008
8,788
10,916
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.
Nope. "First, and most significant, as discussed in the findings of facts, IAP is the method by which Apple collects its licensing fee from developers for the use of Apple’s intellectual property. Even in the absence of IAP, Apple could still charge a commission on developers. It would simply be more difficult for Apple to collect that commission."
 
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vipergts2207

macrumors 601
Apr 7, 2009
4,330
9,658
Columbus, OH
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.
There are no CTFs here. This is a U.S. case.
 

GroovyCatticus

Suspended
Jun 2, 2022
306
268
Apple didn't do the referring, Netflix referred a customer from its own app to its own site.
From an app downloaded on an iOS device from the App Store — referral.

Netflix works in the browser on iPad OS, so I’m sure they could support Safari on iOS if they wanted to. But they choose the App Store because it’s a great way to get customers referred to your service!
 

Mousse

macrumors 68040
Apr 7, 2008
3,501
6,734
Flea Bottom, King's Landing
Apple taking a cut of non-App Store related purchases is ridiculous. But that's the only thing preventing some app from being offered for free on the App Store and then forcing customers to pay--either via DLC or subscription--to use the app. Download the Netflix app from the App Store for free. Apple gets nothing. Pay a subscription to Netflix under the rules Epic/Meta/MS wants. Apple gets nothing. Not fair to Apple. Apple taking a cut of Netflix's monthly subscriptions. Not fair to Netflix, because the customer only downloaded the app once from the App Store.

The compromise would be the developer has to sell the app for at the price of their highest priced subscription and/or download content. This is the best compromise. You know it's a good compromise when nobody is happy.😏😏😏
 
This point is primarily why I think this link charge is bogus, Apple just seems to be doing it out of spite.
They might be doing it out of spite or they might be doing it because they are brining that new customer to the business. Just like you pay marketing companies to bring you customers or other similar types of ways that businesses acquire new customers.
 

jz0309

Contributor
Sep 25, 2018
10,171
26,622
SoCal
I think we can all agree that Apple is entitled to some compensation for developing the platform, SDK, and tools (e.g., Xcode). After all, Epic takes 12% commission from apps distributed through its store, which is more generous than Apple and Google, but it is certainly not free.

So the real question is, what is fair? €0.50/year beyond 1 million install is certainly prohibitive for free and freemium apps generating very little recurring revenue from each user.

Apple's take should be capped to more reasonable amount, such as €0.50/year for active users that generate a minimum revenue of €2.00/year or €1,000/year per developer, whichever is higher.
who decides what's reasonable? the developers? Apple? the government?
 

patlee2000

macrumors newbie
Oct 4, 2016
26
56
Texas, USA
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.

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.
Apple isn't forced to go through Best Buy and Netflix isn't forced to go through an app to get people to subscribe. They have made billions of dollars by getting users to subscribe through their website. They only pay $100-$400/year to Apple for a developer account. That's it. But millions of their users are watching Netflix content through an app on the iPad, iPhone and Apple TV.
 

ToyoCorollaGR

macrumors regular
May 21, 2023
130
103
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.
It absolutely 100 percent is NOT a private company. I'm not sure what made you think this 🙄
 

bcortens

macrumors 65816
Aug 16, 2007
1,250
1,606
Ontario Canada
Apple taking a cut of non-App Store related purchases is ridiculous. But that's the only thing preventing some app from being offered for free on the App Store and then forcing customers to pay--either via DLC or subscription--to use the app. Download the Netflix app from the App Store for free. Apple gets nothing. Pay a subscription to Netflix. Apple gets nothing. Not fair to Apple. Apple taking a cut of Netflix's monthly subscriptions. Not fair to Netflix, because the customer only downloaded the app once from the App Store.
This is already how it works. Given that the companies who want to link out aren't about to give up 25% of subscription revenue to Apple for the privilege of a link, the only thing Apple's new rule does is show that they can said to be complying with this court order.

Does Apple deserve compensation? Yes, but their current policies aren't getting them that compensation and are just getting them stuck in fights with regulators and developers.
 

Yammabot

macrumors regular
May 15, 2017
209
237
Northern NJ
Competition cures all ill’s. Somebody needs to make another tech platform that has better quality and more reasonable pricing. This will put these bloated companies in their place. Make it truly privacy focused and people will switch over night!
 

GroovyCatticus

Suspended
Jun 2, 2022
306
268
At this point who is downloading the Netflix app because of Apple marketing? Who was ever downloading it because of Apple’s marketing? The reason you’re downloading it from the App Store is because that’s the only way to get apps on iOS.
Why doesn’t Netflix build a web app?

We know they *could* but they chose an app on the App Store.

So it’s not the “only way” — it’s the way they chose, then they whine about the business decision they made.
 

vipergts2207

macrumors 601
Apr 7, 2009
4,330
9,658
Columbus, OH
Yet somehow they never wanted to subscribe until they had an iPhone and downloaded an app from the App Store that’s built with tech supplied by Apple!

Referral 😉
You apparently don't realize how circular your logic is.

1. Apple forces devs to distribute iOS apps through the App Store
2. Dev adds link to their app leading to their website for customers to subscribe
3. Apple takes cut from transaction because (return to point 1)
 

dannyyankou

macrumors G5
Mar 2, 2012
13,052
28,098
Westchester, NY
It absolutely 100 percent is NOT a private company. I'm not sure what made you think this 🙄
When I say private company, I don't mean privately owned. I should've said they're a "capitalist" company, like any other company. They're free to make any business decisions they want as long as they're not anti competitive.
 

vipergts2207

macrumors 601
Apr 7, 2009
4,330
9,658
Columbus, OH
Apple isn't forced to go through Best Buy and Netflix isn't forced to go through an app to get people to subscribe. They have made billions of dollars by getting users to subscribe through their website. They only pay $100-$400/year to Apple for a developer account. That's it. But millions of their users are watching Netflix content through an app on the iPad, iPhone and Apple TV.
And this is entirely the point of the anti-steering ruling. The ruling was that companies should be allowed to communicate links to their customers. Whether Apple can charge for the privilege remains to be seen.
 
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GroovyCatticus

Suspended
Jun 2, 2022
306
268
You apparently don't realize how circular your logic is.

1. Apple forces devs to distribute iOS apps through the App Store
2. Dev adds link to their app to their website for customers to subscribe
3. Apple takes cut from transaction because (return to point 1)
You apparently don’t understand that the open web option is there for Netflix to use.

They chose an app on the App Store.

Their business decision — they want it all for $99 per year.

Apple says fine, but no free ads in your app THAT YOU CHOSE TO BUILD.

Status quo for years — now Apple is forced to allow link out for *payment processing*, not to avoid commission.

So fine, you get a link, Apple gets commission. Don’t want to pay commission, don’t link.

Why should Apple allow freeloaders on the platform?
 

bcortens

macrumors 65816
Aug 16, 2007
1,250
1,606
Ontario Canada
Nope. "First, and most significant, as discussed in the findings of facts, IAP is the method by which Apple collects its licensing fee from developers for the use of Apple’s intellectual property. Even in the absence of IAP, Apple could still charge a commission on developers. It would simply be more difficult for Apple to collect that commission."
Given the rest of the text in the ruling and surrounding justifications it seems to me that Apple should be collecting far more than they are trying to do with just the link out commission. A plain reading of the ruling suggests that Netflix should be paying Apple a commission to Apple regardless of how the user subscribed (whether through link out or just if they had an existing subscription and started using iOS APIs).

(However mea culpa - you are correct in that the ruling does say they can collect commission regardless)


Edit: Given the justifications the Judge gave for Apple's right to charge the commission it would imply that Apple should be charging all monetized apps a commission - I don't think carve outs fit into that logic. It is a "may charge a commission" of course, so it is optional for Apple to charge, however the logic of her refutation of Epics claims seems to strongly imply that Apple shouldn't be singling out digital purchases made within apps.
 
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