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If Apple allowed developers to keep 100% of revenue from App Store transactions while Apple continued to pay for all the operating costs it would still, undoubtedly, work out greatly to Apple's advantage. They derive enormous value from having apps in their store creating value for their platforms.

Of course, they would not be satisfied with that arrangement because no company has ever been satisfied with making a ton of money if it is possible for them to make some more. But that certainly doesn't mean the model can't work or that if there were regulation to this effect that it wouldn't still be in Apple's enormous interest to continue to operate the App Store.