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Potential Game Changer For Apple Biz Model

Apple is set to take the stand Monday in a landmark trial that could alter the business model of the country’s most valuable company and serve as a catalyst for new antitrust laws.

Apple is being sued by Epic, the maker of the popular video game Fortnite, for allegedly using its control of its mobile operating system to stymie competition. Apple kicked Fortnite off the App Store last year after the video game maker offered an alternative payment option to its customers, bypassing the mandatory 30 percent commission charged by Apple.

Up for debate is how Apple allows apps to function on iPhones. The only way to install software on Apple’s mobile operating system, called iOS, is through the company’s App Store. Developers who make software for iOS must follow Apple’s rules and use its payment system, which charges a commission on every sale.

The trial will determine whether Apple’s control over iOS is a monopoly, and whether Apple can use that control to force developers to use the App Store and its payment system. One possible outcome in the case is a very different smartphone landscape, in which the powerful computers in everyone’s pockets operate more like desktop computers, where any kind of software is allowed to exist.

Apple is also facing pressure from European regulators, who are looking into several aspects of Apple’s business. On Friday, the European Commission made a preliminary ruling that Apple is in violation of European competition law in the music streaming industry. The charge stems from a complaint brought by competing streaming service Spotify in 2019.
LvChris · 41-45, M
While not as egregious, this is the gig industry model too. The delivery companies take something like 20% of the bill total--an increase of 20% usually passed to customers--then also take a service fee and a delivery fee. It's robbery, taking advantage of the lazy which isn't necessarily a problem.

Several restaurants in LV have grown tired of paying them 20% and are trying to start a rival delivery scam. They're not going to lower the price to normal, they're not going to lower the fees, they're just going to put that extra money into their own pockets. Capitalism at it's finest, I suppose.
Northwest · M
[@335805,LvChris] Most restaurants in our area are also fed up with food delivery services charges and have been asking customers to order directly.

I've used them a couple of times and then stopped. In the food delivery case, you do have a choice: order direct, provide your own service, etc. In the apps/games on iPhone business, there is no other choice.
This makes me nervous.
Stopmakingsense · 56-60, F
So they probably object to treating the drivers as their employees, too. Otherwise they'd employ people.
Northwest · M
[@1201621,MotherHubbard] This is about Apple's App Store, not delivery services.

 
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