A new 48-page U.S. Commerce Department report claims that Apple and Google “play a significant gatekeeping role by controlling (and restricting) how apps are distributed,” and that the various fees and rules they impose on app developers has created an uneven playing field.
“All of these factors translate to potential losses for consumers: prices that are inflated due to the fees collected by gatekeepers, innovation that is hampered by policy decisions to limit access to smartphone capabilities, and the loss of choice of apps that are not featured or even accessible for smartphone users,” the report said.
Google didn’t immediately respond to a request for comment. In a statement, Apple said its app store has benefited developers and supports hundreds of thousands of jobs. In the past, Apple has argued that its control over iOS app distribution helps promote users’ privacy and security.
“We respectfully disagree with a number of conclusions reached in the report, which ignore the investments we make in innovation, privacy and security,” an Apple spokesperson said, “all of which contribute to why users love iPhone and create a level playing field for small developers to compete on a safe and trusted platform.”
Wednesday’s report… does not launch a regulatory process. Instead, it provides policy recommendations, such as limits on the apps Apple and Google can pre-install or set as defaults on their respective operating systems, or giving users the right to install apps from any source.
MacDailyNews Take: A new 48-page U.S. Commerce Department report (how much did that cost?) claims that “prices that are inflated due to the fees collected by gatekeepers.”
The average price of an iOS app in the Apple App Store is 80 cents.
The vast majority of developers who pay Apple an App Store commission, pay 15%. That amounts to 12 cents of “inflated prices” for non-free apps on average. So, if you bought 50 apps for your iPhone, it would cost you, on the average, a total of $40. Halving Apple’s commission would reduce that price to $37. Removing Apple’s commission entirely would reduce that price to $34.
Here you see the absolute horror of “inflated prices” caused by Apple trying to cover costs to run their App Store for 1.4+ billion iOS/iPadOS users. A total of $3-$6 per every 50 apps, on average. How can any app consumer survive such abject gouging?!!!
How much did it cost developers to have their apps burned onto CDs, boxed, shipped, displayed on store shelves prior to Apple remaking the world for the better for umpteenth time? Does Apple not have costs to store, review, organize, surface, and distribute apps to 1+ billion users? – MacDailyNews, July 30, 2021
Ultimately, the end user pays, regardless.
Either Apple continues to take App Store commissions to pay for their infrastructure costs or they increase hardware and/or subscription prices to pay for the government interference.
As usual, Big Government is a meddling middleman just attempting to move costs around in order to appeal to their base: “We fought the big, bad corporation meanies and saved you oh-so-much money on your apps (a whole 12 cents per). (We won’t talk about your other costs – hardware, subscription rates, etc. – that were increased in order to compensate for our meddling). We think you’re stupid. Vote for us.”
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Gates, like fences, can work one of two ways (and of course both)
Keeping something in, or keeping something out.
I see Apple (America) as trying to keep something out while Google (China) is keeping something in…
MDN makes a valid point, infrastructure cost money and right now every app developer makes money by letting Apple do it. It’s Apple’s platform, if they don’t want to pay the few dollars for it’s upkeep, let them do it themselves with the ‘full’ cost of ownership.
Can we please defund the government!?
This is like saying my local grocery store is not allowed to decide what products to stack on their shelves and what their markup will be. What a huge waste of government time and our money paying these morons.
” prices that are inflated due to the fees collected by gatekeepers, innovation that is hampered by policy decisions to limit access to smartphone capabilities, and the loss of choice of apps that are not featured or even accessible for smartphone users,”
These people obviously never bought apps 30 years ago when you had to truck down to CompUSA or Circuit City. They also obviously never developed apps 30 years ago when the developer got a 10% cut instead of a 70% cut. They are not trying to protect the consumer but instead trying to play to their bases and “punish” the big, bad corporations. Consumers have more, better, and cheaper choices than ever before thanks to the app stores of Apple and Google. (Geez, did any of these lawmakers ever try to develop or sell apps for any game console?)
The Biden administration have clearly been lobbied by the morons in the EU who want the same thing.
MDN completely correct. BS politicization. In the mean time, Wall Street and Pelosi govt members abuse the stock market with no end in sight.
Apple and Google have a lot of money and politicians have an insatiable appetite for money and the power to get it. They cynical side of me sees this report and the EU efforts as a shake down. “Nice store you have here. It would be a shame if anything happened to it. But if you have the right friends, . . .”
On the other hand, there is a good case for not allowing a company or political body to have too much power over something important. If that was what the politicians were most concerned about, then the gatekeepers of information (and propaganda) would be under more scrutiny. As we know, some big tech companies and political bodies have little appreciation for dissenting opinions and the principal of the value of free speech like the US founding fathers did. The first amendment was put in place to help prevent tyranny (def- cruel and oppressive government or rule). Every cruel and oppressive government has always suppressed free speech. No room for dissenting thoughts in their/our society.
Ok, I’ve said enough.