Hacker News new | ask | show | jobs
by mikedouglas 1773 days ago
IAP is a platform-enforced monopoly that allows Apple and Google to extract a flat 30% from every digital transaction that happens in an app. It's one of the clearest examples of the deadweight loss from monopolies, as businesses that would otherwise exist but have higher marginal costs can't offer products that consumers would otherwise benefit from.

https://twitter.com/jasminericegirl/status/14026910479401001...

2 comments

App store fees and Apple Pay are different things. What people are concerned about are increased fees and side-loading apps, and we can have a separate policy discussion on capping fees and having separate stores.

What Apple Pay does is protect consumers from having to hand out their credit card information to random companies with less-than-Apple's reputation for handling consumer financial data. This is true both on and off the app store.

No other payment vendor is going as far as Apple to protect your financial data, and you most certainly will never have the negotiating position to make Target budge on how they do things.

I keep thinking of this burger joint 22 km from my house who do free delivery when I order a rather large 6 euro burger menu. The micro-margins and the monumental effort involved blows my mind. They have to be cheap enough to get enough orders to be able to chain together enough deliveries most of the time. Surely Apple and Google in this settings are entitled to 2 euro for all the work they did. Seems only fair.