And by “open up” what they mean is they cannot ban app developers from communicating prices that exclude Apple’s 30% fee on in-app purchases. They have been doing this for 15 years to prevent consumers knowing that eg YouTube Premium might be $5/month cheaper without Apple’s rent, or how to subscribe to Spotify, or how to buy Kindle books etc. Always making it easier for customers to pay Apple’s fee, than for competitors to conduct business without it.
In the US they face a contempt-of-court charge for defying a similar order to this one, which was issued during the Epic case when the American judge identified these restrictions as illegal.
In the EU they received a $2 billion fine and are reportedly to be the first fined for non-compliance of the DMA which seeks to turn platforms into more neutral territories where eg Patreon doesn’t need to charge 30% more “or else”, where game streaming can exist, etc.
What is it risk is simple: 70% of *all* their App Store spending and subsequently fees comes from games, specifically the most popular games, the top ones of which individually pay hundreds of millions of dollars per year in rent to Apple. The moment they can advertise their own purchasing methods these fees will plummet, total commission could retract by $15+ billion a year of almost pure-profit.
For ~$40,000 a day they will probably just incur the punishment indefinitely, defying them as they have done the US and EU, because these fees amount to something towards $100,000,000 per day.
9-11GaveMe5G on
It’s embarrassing that we rely on the EU and Brazil to hold our tech companies to account. And it will only get worse for at least the next 4 years
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And by “open up” what they mean is they cannot ban app developers from communicating prices that exclude Apple’s 30% fee on in-app purchases. They have been doing this for 15 years to prevent consumers knowing that eg YouTube Premium might be $5/month cheaper without Apple’s rent, or how to subscribe to Spotify, or how to buy Kindle books etc. Always making it easier for customers to pay Apple’s fee, than for competitors to conduct business without it.
In the US they face a contempt-of-court charge for defying a similar order to this one, which was issued during the Epic case when the American judge identified these restrictions as illegal.
In the EU they received a $2 billion fine and are reportedly to be the first fined for non-compliance of the DMA which seeks to turn platforms into more neutral territories where eg Patreon doesn’t need to charge 30% more “or else”, where game streaming can exist, etc.
What is it risk is simple: 70% of *all* their App Store spending and subsequently fees comes from games, specifically the most popular games, the top ones of which individually pay hundreds of millions of dollars per year in rent to Apple. The moment they can advertise their own purchasing methods these fees will plummet, total commission could retract by $15+ billion a year of almost pure-profit.
For ~$40,000 a day they will probably just incur the punishment indefinitely, defying them as they have done the US and EU, because these fees amount to something towards $100,000,000 per day.
It’s embarrassing that we rely on the EU and Brazil to hold our tech companies to account. And it will only get worse for at least the next 4 years