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TheLastOne

Member
Oct 25, 2017
455
That Apple have not increased their cut at all in this time is a strong case that they have not used any monopolistic powers to increase prices.

Apple introducing 30% cuts on IAP and restrictive policies mandating use of Apple IAP only was a substantial change and was not 12 years ago. It also changed the market as other players (Google) followed suit after seeing what Apple could get away with.

30% for payment processing was not industry standard until Apple made it standard a few years ago.
 

EloquentM

Member
Oct 25, 2017
9,631
That Apple have not increased their cut at all in this time is a strong case that they have not used any monopolistic powers to increase prices.
Judge states otherwise: YGR: If you have an iPhone you can't buy it [an app] from anyone else. You can't buy it from Google. You can't buy it from Amazon. So without competition, where is that 30% coming from? Why isn't it 10% or 15%? How is the consumer benefiting at all?

oh, and the IAP policies were not initially included (probably no functionality for it at the time)???? that's gonna be hard to get around. even if the judge says "you agreed to this" it doesnt beat her other argument that there is no competition and everyone is paying apple/google.
 

Zantagor

Member
Jan 29, 2019
324
Montreal
Apple introducing IAP and restrictive policies mandating use of Apple IAP only was a substantial change and was not 12 years ago. It also changed the market as other players (Google) followed suit after seeing what Apple could get away with.
You mean the same IAP policies that are pretty much prevalent on every other online digital stores?
 

EloKa

GSP
Verified
Oct 25, 2017
1,905
I mean, that's cool that they have a different perspective. I don't agree, and if there's any implied appeal to authority I honestly do not care if that person is a lawyer or not that doesn't mean people can't have differing opinions. Just because it's not literally the same situation in that Apple isn't a monopoly, the end result for a poor person is the same - their smartphone is their only way to get to the internet. And they have to pay 30% for all store purchases to Apple or Google.
Do you actually know what the Microsoft case was about? It was never about abusing their power to artifically increase the price or get some kind of cut.
Microsoft got sued for providing an integrated browser for free while you had to walk to your local retailer and pay $10 if you wanted a different browser option.

You know... the local actual brick and mortar stores with employees, property taxes, and utilities that do get 30% as well.
 

Zantagor

Member
Jan 29, 2019
324
Montreal
Judge states otherwise: YGR: If you have an iPhone you can't buy it [an app] from anyone else. You can't buy it from Google. You can't buy it from Amazon. So without competition, where is that 30% coming from? Why isn't it 10% or 15%? How is the consumer benefiting at all?
But didn't she state right after that, that 30% was the market standard elsewhere
 

TheLastOne

Member
Oct 25, 2017
455
You mean the same IAP policies that are pretty much prevalent on every other online digital stores?

Yes - the same IAP policies that other companies have been introducing since watching Apple get away with it.

That 30% for IAP is enriching Apple (at an insane rate) while they provide a service that costs fraction of a penny per transaction. The only one who loses is you, the consumer - as you're eating the cost.

Just wait until credit card companies decide to charge 30% and point to Apple as precedence. At least then you could use cash - competition!
 
Last edited:
Mar 29, 2018
7,078
It's not like Apple started with the 30% from a dominate position though, 12 years ago when Apple launched the AppStore there really was no online app market that developers needed to interact with, and Apple didn't have a "monopoly" on phones, developers could have easily ignored it and it would have died, but they instead saw an opportunity to make money, even if Apple was charging 30%, so at least at that time it wasn't seen as unreasonable.
Good point. You could say they set the precedent.
 

Deleted member 5596

User requested account closure
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Oct 25, 2017
7,747
Do you actually know what the Microsoft case was about? It was never about abusing their power to artifically increase the price or get some kind of cut.
Microsoft got sued for providing an integrated browser for free while you had to walk to your local retailer and pay $10 if you wanted a different browser option.

You know... the local actual brick and mortar stores with employees, property taxes, and utilities that do get 30% as well.

The Commission will investigate the possible impact of Apple's App Store practices in particular on competition in music streaming and e-books/audiobooks. These practices may ultimately harm consumers by preventing them from benefiting from greater choice and lower prices.
 

Deleted member 5596

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Oct 25, 2017
7,747
How much lower should a price go so it's below "free"? And please provide a link about where Epic is sueing Apple for music streaming, e-books and audiobooks.

This is the comission investigation due to Spotify and other e-books companies filing a complaint, that's why they are focusing in these 2 areas but the comission is investigating these 2 points:
The Commission will investigate in particular two restrictions imposed by Apple in its agreements with companies that wish to distribute apps to users of Apple devices:

(i) The mandatory use of Apple's own proprietary in-app purchase system "IAP" for the distribution of paid digital content. Apple charges app developers a 30% commission on all subscription fees through IAP.

(ii) Restrictions on the ability of developers to inform users of alternative purchasing possibilities outside of apps. While Apple allows users to consume content such as music, e-books and audiobooks purchased elsewhere (e.g. on the website of the app developer) also in the app, its rules prevent developers from informing users about such purchasing possibilities, which are usually cheaper.

Which is exactly Epic's complaints

Also this:

Following a preliminary investigation the Commission has concerns that Apple's restrictions may distort competition for music streaming services on Apple's devices. Apple's competitors have either decided to disable the in-app subscription possibility altogether or have raised their subscription prices in the app and passed on Apple's fee to consumers.

In both cases, they were not allowed to inform users about alternative subscription possibilities outside of the app. The IAP obligation also appears to give Apple full control over the relationship with customers of its competitors subscribing in the app, thus dis-intermediating its competitors from important customer data while Apple may obtain valuable data about the activities and offers of its competitors.

And this comes by the EC itself:
ec.europa.eu

Press corner

Highlights, press releases and speeches

Maybe we can put down the 'this is not like MS in the 90's' when there's already an official investigation underway about antitrust laws
 

EloKa

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Oct 25, 2017
1,905
Maybe we can put down the 'this is not like MS in the 90's' when there's already an official investigation underway about antitrust laws
Dunno. The Apple vs Epic case is either "like MS in 90s" or not. In this case it's not.
Apple should be investigated for several practices imho but constantly comparing the case to "MS in the 90s"" like it's some kind of magic buzzword is kinda stupid.
 

bxsonic

Member
Oct 30, 2017
1,224
I really don't understand the argument of being a monopoly within its own platform. Like how does that even work? If Epic wins, this sounds disastrous for console makers. iOS is basically exactly like consoles platforms. If iOS is forced to open up, wouldn't every console platforms eventually also be subject to the same thing? Ugh, I personally love these platforms for their closed nature.
 

EloquentM

Member
Oct 25, 2017
9,631
Dunno. The Apple vs Epic case is either "like MS in 90s" or not. In this case it's not.
Apple should be investigated for several practices imho but constantly comparing the case to "MS in the 90s"" like it's some kind of magic buzzword is kinda stupid.
I mean it'll probably be referenced by epic in their trial brief and potentially during trial (if they go to trial) whether used as facts to compare or contrast with this case the analogy is close enough.

That being said I haven't taken the time to research and read any material from either cases.
 

Greenpaint

Member
Oct 30, 2017
2,884
Cool, and it'll be within the company's rights to disconnect your service. Let's not pretend otherwise. There is also zero reason to believe this case will be won in Epic's favor and that Apple is actually doing anything illegal.

Only works if customers have access to similar services from other companies. Some places have only one choice of ISP. Internet is a necessity to take part in society of today and giving one company a monopoly over that is not a good thing.

Looking at Apple vs Epic, phone model/OS market share is not really accurate, what companies need is revenue from app stores. Apple store has about 65% market share there, globally https://appleinsider.com/articles/1...-third-as-many-installs-in-first-half-of-2019

Is this particular case unfair use of a dominant market position by Apple? I'm not sure, but I think it's worth looking at.
 

Deleted member 5596

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Oct 25, 2017
7,747
Dunno. The Apple vs Epic case is either "like MS in 90s" or not. In this case it's not.
Apple should be investigated for several practices imho but constantly comparing the case to "MS in the 90s"" like it's some kind of magic buzzword is kinda stupid.

The comparison comes from Apple, another major tech company, may be breaching antitrust laws, just like MS did back then and was hit by the EU because of that.
 

Eoin

Member
Oct 27, 2017
7,103
If iOS is forced to open up, wouldn't every console platforms eventually also be subject to the same thing?
No.

Epic's argument hinges on being able to convince a court that Apple's closed ecosystem is bad because smartphones are essential, everyday pieces of equipment.
 

Deleted member 17184

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Oct 27, 2017
5,240
I really don't understand the argument of being a monopoly within its own platform. Like how does that even work? If Epic wins, this sounds disastrous for console makers. iOS is basically exactly like consoles platforms. If iOS is forced to open up, wouldn't every console platforms eventually also be subject to the same thing? Ugh, I personally love these platforms for their closed nature.
I don't think it's the same. You can buy games at retail for consoles, but you can't buy any app for iOS outside of the App Store. Even if you just think of digital edition consoles, they can get away with being able to buy codes from other digital stores, which is already happening.

Also, consoles are usually sold at a loss. iPhones and iPads are not.
 

HgS

Member
Dec 13, 2019
586
I'm not sure why it should matter where the 30% comes from, I thought the US practiced a free market where prices are set by demand and not some sort of combination of component-labor.

There is no truly free market economy anywhere in the world. All economies are either command or some portion of mixed command and market. The US used to exert a huge amount of control over their economy... look back at the anti-trust suits in the late 1800 early 1900s.

That attitudes changed a lot as time has gone on both from government and citizens. The western desire to level out peaks and valleys in economic growth and contraction inherently bias us towards large stable companies versus more dynamic and vulnerable alternatives.

People felt like the Great Depression made a good case for less command and more free market. Living in 2020 with the benefit of hindsight and current outcomes I think it gets a lot easier to put a "yes but" in front of that line of thinking.
 

Kuga

The Fallen
Oct 25, 2017
2,263
Yes there was. They needed to show damages and that Apple would, in fact, react the way they did.

My guess is they expected exactly what happened - that Apple would abuse its market position in retaliation, which would help Epic win a TRO.

Although I expect they were hoping for a TRO on both Unreal and Fortnite - which might have happened with a more sympathetic judge.
According to this lawyer, it was unnecessary for an antitrust lawsuit:

Obviously that's just one dude and I'm not a lawyer either, but my limited understanding is that it wasn't necessary.
 

Kaivan

Banned
Oct 25, 2017
1,390
I really don't understand the argument of being a monopoly within its own platform. Like how does that even work? If Epic wins, this sounds disastrous for console makers. iOS is basically exactly like consoles platforms. If iOS is forced to open up, wouldn't every console platforms eventually also be subject to the same thing? Ugh, I personally love these platforms for their closed nature.
Exactly.

If you want to preserve how consoles work, don't cheer for Epic lol. If Epic wins, consoles will basically become a PC.
 

exodus

Member
Oct 25, 2017
9,943
I really don't understand the argument of being a monopoly within its own platform. Like how does that even work? If Epic wins, this sounds disastrous for console makers. iOS is basically exactly like consoles platforms. If iOS is forced to open up, wouldn't every console platforms eventually also be subject to the same thing? Ugh, I personally love these platforms for their closed nature.

Opening up does not mean allowing unsigned code to run on the systems. You can open up the storefront without harming the closed nature of the platform.
 

zoltek

Member
Oct 25, 2017
1,917
She then later called the 30% industry standard so could go either way.
Yeah. So basically judge is saying there are valid points to consider on both sides of the issue and that the case will not be thrown out as frivolous. The fact that the judge appears to be willing to at least look into Apple's potential monopoly and/or anti-competitive behavior could have major repercussions.
 

bxsonic

Member
Oct 30, 2017
1,224
No.

Epic's argument hinges on being able to convince a court that Apple's closed ecosystem is bad because smartphones are essential, everyday pieces of equipment.
But it seems wholly arbitary right? Feels like something that Epic could just expand to consoles with new definitions in the future to include consoles as well?

I don't think it's the same. You can buy games at retail for consoles, but you can't buy any app for iOS outside of the App Store. Even if you just think of digital edition consoles, they can get away with being able to buy codes from other digital stores, which is already happening.

Also, consoles are usually sold at a loss. iPhones and iPads are not.
But aren't retail games also subject to licensing fees from console makers? The format is different but aren't developers also subject to paying platform holders something? Feels like the platform holders still have a "monopoly" over their platform based on these arguments and definitions.
 

EloKa

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Oct 25, 2017
1,905
I mean it'll probably be referenced by epic in their trial brief and potentially during trial (if they go to trial) whether used as facts to compare or contrast with this case the analogy is close enough.

That being said I haven't taken the time to research and read any material from either cases.
I don't see why anyone would ever bring up such a bad analogy especially in court because they share literally no similarties at all.

The MS anti-trust case was about:
The suit accused Microsoft of illegally protecting its operating-system monopoly and seeking a new monopoly for its own browser, Internet Explorer. The fear was that Microsoft would kill Netscape, monopolize the browser market and use that point of control to dominate the coming age of the web.
Microsoft was accused of trying to create a monopoly that led to the collapse of rival Netscape by giving its browser software for free.
The suit was brought following the browser wars that led to the collapse of Microsoft's top competitor, Netscape, which occurred when Microsoft began giving away its browser software for free.

I don't understand how someone can look at those quotes and having the first reaction beeing a "Yeah! Exactly like Apple vs Epic!".
 

monketron

Member
Oct 27, 2017
2,839
Force Apple to open up iOS to any store that wants to open, make it that they can't pre-install the App store on their phones and give the consumer the choice. Then let the open market work out how much Apple can get away with charging.
 

danm999

Member
Oct 29, 2017
17,096
Sydney
Exactly.

If you want to preserve how consoles work, don't cheer for Epic lol. If Epic wins, consoles will basically become a PC.

Not sure they'd become like PCs, I think you might see one or more console manufacturer exit the market.

The revenue model would be all fucked up without the 30% cut they take of software.
 

EloquentM

Member
Oct 25, 2017
9,631
I don't see why anyone would ever bring up such a bad analogy especially in court because they share literally no similarties at all.

The MS anti-trust case was about:




I don't understand how someone can look at those quotes and having the first reaction beeing a "Yeah! Exactly like Apple vs Epic!".
Are those quotes from the actual case?
 

Eoin

Member
Oct 27, 2017
7,103
But it seems wholly arbitary right? Feels like something that Epic could just expand to consoles with new definitions in the future to include consoles as well?
If they win here, they cannot expand the results of this case (based on smartphones being ubiquitous and essential) to include consoles (which flatly do not meet that definition). They would need to file an entirely new suit with new and different arguments and win based on those.
 

bxsonic

Member
Oct 30, 2017
1,224
Force Apple to open up iOS to any store that wants to open, make it that they can't pre-install the App store on their phones and give the consumer the choice. Then let the open market work out how much Apple can get away with charging.
Er, maybe you can just buy some other phone or a portable PC? Lol. Imagine if every phone that you buy you have to go through some tedious shit of setting up all the stores? I mean, I get some people hates Apple, but come on, this is an awful user experience through and through.
 

TheLastOne

Member
Oct 25, 2017
455
According to this lawyer, it was unnecessary for an antitrust lawsuit:
Obviously that's just one dude and I'm not a lawyer either, but my limited understanding is that it wasn't necessary.

I meant that it was necessary for their strategy.

Otherwise yes, that is correct - they didn't NEED to do that to file the lawsuit.
 

danm999

Member
Oct 29, 2017
17,096
Sydney
If they win here, they cannot expand the results of this case (based on smartphones being ubiquitous and essential) to include consoles (which flatly do not meet that definition). They would need to file an entirely new suit with new and different arguments and win based on those.

No this isn't correct because nothing I have seen in Epic's filings detail how consoles would be excluded from this.

The judge in the TRO is straight up comparing the 30% revenue share on consoles to Apple's model.
 

Eoin

Member
Oct 27, 2017
7,103
No this isn't correct because nothing I have seen in Epic's filings detail how consoles would be excluded from this.
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IIFloodyII

Member
Oct 26, 2017
23,952
Good it sounds like Unreal and the many devs who have nothing to do with this shitshow will be spared. The play-by-play is kinda great, the Judge isn't having any of their bullshit.
 

bxsonic

Member
Oct 30, 2017
1,224
If they win here, they cannot expand the results of this case (based on smartphones being ubiquitous and essential) to include consoles (which flatly do not meet that definition). They would need to file an entirely new suit with new and different arguments and win based on those.
I might be remembering wrongly, but wasn't this the same general argument about Steam before they launched EGS? Like Steam being a monopoly or some shit and charging too much? Feels like only time before Epic targets every other platform if they win this. Lol. I mean it's their rights to fight for more money, but as a consumer who loves these closed platforms, it really sucks. Have the existence of EGS really made the PC a better platform? Feels like Epic is just changing the narrative to whatever best suit their current needs.
 

Psittacus

Member
Oct 27, 2017
5,932
If the murmurings from the judge pan out consumers could end up the only winners in this case. I'm down.
 
Nov 2, 2017
6,803
Shibuya
Do you actually know what the Microsoft case was about? It was never about abusing their power to artifically increase the price or get some kind of cut.
Microsoft got sued for providing an integrated browser for free while you had to walk to your local retailer and pay $10 if you wanted a different browser option.

You know... the local actual brick and mortar stores with employees, property taxes, and utilities that do get 30% as well.
Brick and mortar stores do not get 30% on video games. They're usually lucky to even get 20-25% and it varies by supplier.

If the murmurings from the judge pan out consumers could end up the only winners in this case. I'm down.
Software developers still really could as well if we see changes to the fee structure. If Apple loses, everybody wins.
 

Eoin

Member
Oct 27, 2017
7,103
This does nothing to exclude consoles though. An antitrust violation is an antitrust violation, regardless of the role the device plays in the market.
The size and necessity of the market (and the position of a company within that market) are crucial factors in determining whether a particular practice is an antitrust violation. What might be an antitrust violation in one market can be fine in another, depending on context. That's why these trials are necessary in the first place.