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by 015a 870 days ago
I've thought a tremendous amount about this. Its important to note, we're speaking from an ethical/moral angle, not a legal one. Apple isn't doing anything that courts have been found to be illegal.

First, on what Apple calls their "Core Technology Fee" in Europe.

Ethically, I believe its really obvious that this fee is something that is paid by users. When I buy an iPhone, I am buying the operating system, which includes the core technology that iPhone ships with. Apple absolutely charges users for this; they also double-charge developers for it, as its part of their 30% fee structure.

Apple has also made the argument that the 30% fee structure also includes App Store marketing services. This is a more-reasonable argument from Apple, specifically in the situation where the sale is DIRECTLY attributable to an action within the App Store application (e.g. searching for an app to buy, home page marketing, etc). This differentiation is not a new idea: the Windows app store formalizes this model by taking a larger cut of sales that came from the store channel versus external channels [1].

However, Apple's cut is universal, regardless of channel. In their infinite ability to double-dip, they also charge for advertising services within the App Store; so, developers may pay for a click-through within the App Store home page or search results, then also pay the 30% cut when that ad converts into a sale.

A few years ago, Apple reduced their cut on subscription revenue to, effectively, 15%. This is still extremely high for the level of service Apple is providing to justify that 15%; but it makes sense from the perspective that what Apple definitely and obviously isn't doing is any kind of customer support or marketing to maintain that customer. Apple has never been willing to admit that the same thing holds true for any piecemeal purchase where the primary marketing channel is the app itself, and not the App Store. If I buy an audiobook on Spotify, Apple did nothing to push that sale forward, similar to how they did nothing to convince me to renew my Spotify subscription. Yet, they would in theory get an additional 15% of the sale.

All of this is also, please do not forget, in addition to the $99/year fee Apple charges all developers. Its not a lot, especially for companies like Spotify. But, that supposedly includes things like the core technology license; so in some sense Apple is actually triple-dipping on these sales.

Oh, and also: A some of these numbers are different and worse for games. Why? Because I guess games are, just, different? For some reason. Unclear. I'm sure it has nothing to do with the fact that Apple is the world's largest gaming company by revenue.

Here's what I strongly feel is ethical:

- Apple can charge whatever percentage they want for IAP. Its their product, do what you will.

- Apple can require applications distributed through the App Store to only leverage Apple IAP. Its their App Store, do what you will.

- Apple must allow the installation of applications via a web browser outside of the App Store channel. Apple may elect to scan these applications with some kind of on-device threat classification, and present the results of that scan to the user. Apple may also elect to change the wording of this installation prompt to account for whether the app is signed by Apple, and the developer is within the Apple Developer program. All of these protection systems must be user-overrideable, point in time, without any additional navigation or payment from the user.

Here's the thing: I think, under a system like this, Spotify still doesn't change. I think most major apps don't change.

[1] https://appetiser.com.au/blog/microsoft-store-revenue-now-gi...