Hacker News new | ask | show | jobs
by ocdtrekkie 1677 days ago
It's actually worse, it's 26% for the larger businesses subject to the 30% rate which make up 99% of Google's revenue, when using their own billing system. It's a farce and Google knows it. (Similarly bull----, Apple claims their existing practices already comply with South Korea's new laws... which they definitely do not.)

The penalty for noncompliance is so low because the money is so huge, and nobody will go to jail, that they are going to pull every stunt in the book until someone has the guts to start shutting these companies down. By claiming they are complying technically, while obviously not, they force the government to follow up the legislation with a regulatory action, which then they can tie up in the courts for years.

If they complied with the law properly now, other countries would quickly follow suit. But if they can tie up the attempt for a number of years, they can all pad out their retirement funds before all the litigation is over and duck out before the stocks crash.

2 comments

OK, let's imagine South Korea "shuts Google and Apple down" (kicks them out of the country, I guess, and then bans anybody from importing their products). Now what? Seems like they just don't have smart phones and torched a pretty productive part of their economy (i.e., producing Android phones), and it's not clear where independent app developers are supposed to be developing their stuff anymore.
Or this could force phone companies to create alternative, more open forks of the supposedly Open Source Android.

It's not like we don't know how to do this stuff, we just don't invest enough in it.

South Korean company tried to do just that - they built an OS called "Tizen" which withered and died because without user-facing software, it was a horrible user experience and people were seriously annoyed that they couldn't use the software they actually care about. Instead, they went and bought Google/Apple devices instead.

Another USA company tried to do that as well. They called their OS "Windows Phone" and it withered and died because a fractured support for software people care about doesn't make a useful device.

A Chinese company tried to do that as well. They now again ship Google Services next to their own Huawei services in Europe because without software support, their smart devices weren't useful to users either.

Where are you getting your information? Tizen OS is not dead. It is well alive and kicking and being improved and Samsung is slowly implementing that unified OS not only for their phones, but for other Samsung products. The main issue for any phone producer is that any OS that they do not own also Android comes at a price - there is no such thing as free OS.

There are also plenty of other mobile phone OS, that are not compatible with every phone and that is the main issue why they are not widespread. Phone that I own is supported not only by Android(and Android forks), but also couple of other mobile phone OS. The trend is that in future there will be more choices for OS, that might satisfy those users, that are currently not happy about Android, but have no other choices at the moment.

There are at least 10 other mobile OS choices - most of them are based on Linux, but current share of those is ~0,1% out of ~6 billion of phones. In total numbers that is only 6 million devices. 6 million device market is a significant number for any company, not to mention, that this number is only playground compared to 1000x larger world market of mobile phones.

"without software support, their smart devices weren't useful to users either."

Therefore, logically, Apple should be the one paying app developers 30% of their revenue. Witout them iPhone would be an overpriced paperweight.

The relationship is symbiotic. iPhones need your apps to stay relevant, and developers need access to the iPhone ecosystem to be able to reach anybody.
Sure, but Apple has the power, and money follows power.
Apple pays developers 70% of their revenue. Thats where the developer revenue comes from.
Unless developers get money from iPhone sales, this statemet has tenuous relationship with reality
You're almost there, but you didn't go all the way.

South Korea is a small market. The US company is famous for mismanaging its mobile operating systems for more than 2 decades.

The Chinese company didn't "try" to do that, it was forced to. But guess what, in China, where most external apps are banned, there's an entire, completely separate ecosystem.

You do need a combination of skill and critical mass. I don't expect South Korea to achieve this, but for example if there's a bigger alliance of say, South Korea, the EU, etc., where they put resources into encouraging an OS based on open standards, that starts to look feasible.

App developers will need support, but they can port their apps. Especially since this OS doesn't need to start from scratch, it can be based on AOSP.

That's probably the biggest thing Google/Apple are afraid of this point, that a fully open/interoperable mobile OS is somehow enforced. They either have to open up their OSes to be in key markets or they're forced to let someone else create that OS.

South Korea has its own Galapagos Island situation with apps thanks to efforts to foster them by the government — eg Google Maps is seriously crippled and you have to use Kakao Maps, they have their own local version of Uber, etc, etc
If it were so easy Chinese companies would have already done it, having both more resources and an obvious incentive.
They have done it. Do you know how the Chinese smartphone app market works?
As far as I'm aware almost everything is still Android, even if they're not using the Play Store.
Yeah, but Android is Open Source by design.

All these governments don't have an issue with the code, they have issues with project governance.

Samsung and Tizen OS(that comes with store) is already an alternative for South Korea. Though, so far Samsung has profited from cooperating with Android, as it gained unprecedented share for smartphone market.

iPhone has branded itself as status symbol that people are rich and can pay and maintain lifestyle that includes ipHone - Androids, well - it is replacable and will be eventually.

At the very least, if Samsung is compelled to exclusively make Tizen phones, I think they can pretty much kiss foreign sales good-bye. Though I guess they're in better shape than LG trying to license the OS from their chief competitor.
"Now what? Seems like they just don't have smart phones and torched a pretty productive part of their economy"

So you are saying Google / Apple are above the law, capitalism is more important than democracy?

Where does this end? They might as well start acting as mafia, resort to raketeering and break you legs if you don't show up for work.

No, I’m not saying that. I’m saying there is a reason we have a regulatory regime with all the safeguards you’re decrying instead of randomly axing companies.
You reasons seems to be that Apple and Google are holding us hostage.

Is there any other reason i missed?

Sure, in the same sense the power plant "holds us hostage" so we don't respond to malfeasance by not having electricity anymore.
I have not found an English translation of the South Korean regulations - do you know what clause(s) Apple does not comply with?