Apple Fellow Phil Schiller told a U.S. judge that the company’s new 27% fee on purchases made outside its App Store are a good-faith attempt to comply with a judge’s 2021 order.
Leah Nylen for Bloomberg News:
“We are trying to enable what the law requires,” Apple Fellow Philip Schiller said Friday during the fourth day of a hearing focused on Apple’s compliance. “There was mentioned in the order about if Apple has a right to a fee even without” developers using its in-app payment system.
Schiller, a long-time executive who helped develop the App Store, is the most senior executive to testify at the hearing before US District Judge Yvonne Gonzalez Rogers in Oakland, California. She is deciding whether Apple’s new fees comply with her 2021 order that the iPhone maker must allow developers to provide links to cheaper payment options online.
MacDailyNews Take: You know, because the week before, Gonzalez Rogers ordered Target to allow Walmart to display signs advertising lower prices next to every product…
Oh, wait, they aren’t forced to do that by some ditzy judge. Because it’s ludicrous, illogical, and just plan wrong. – MacDailyNews, September 10, 2024
Carson Oliver, senior director for business management for the App Store, testified that… Apple provides a number of services to developers including discovery of apps, distribution, developer tools and platform technology, along with additional privacy, user trust and safety that aren’t comparable to other platforms…
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MacDailyNews Take: Security is certainly a major concern.
As for Apple’s App Store commissions:
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? Apple incurs costs to store, review, organize, surface, and distribute apps to over one billion users. — MacDailyNews, June 10, 2022
[I]f developers like Epic Games want to advertise lower prices using Apple’s App Store, Apple should simply charge an in-store advertising fee. We suggest it be 15% for developers making under $1 million per year and 30% for those making $1 million or more annually. 🙂 – MacDailyNews, September 10, 2024
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“You know, because the week before, Gonzalez Rogers ordered Target to allow Walmart to display signs advertising lower prices next to every product…”
I didn’t realize WalMart was a supplier of any product or service sold at Target.
I’ll make it easy for you, because, well, the rest of us know why:
① Sony makes a clock radio and sells the same model in Walmart and Target.
② Walmart prices it at $29.99. Target prices it at $34.99.
③ Gonzalez Rogers would never order Target to allow Walmart to place a sign next to that clock radio advertising $5 lower price at Walmart.
Sony = Epic Games, Spotify, etc.
Target = Apple’s App Store
Walmart = Epic Games’ online store, Spotify’s online store, etc.
Get it, now?
I see where you are coming from. I believe the analogy you and MDN are using is faulty. If I understand the current state of the ‘advertisement’ being ordered, it occurs in the products (apps) and not in the description/download area of the App Store. As such the ad is similar to offers inserted in the box and not visible like the sign you and MDN propose till the product is acquired.
If you still want to use a big box store as the analogy, you may need to also argue why those same stores aren’t up in arms about those in-box inserts redirecting consumers to purchase services and physical consumables for the product direct from the manufacturer and provide no future income for the store.