Google vs Epic: App Store Monopoly

I remember this coming up during the Epic vs Apple trial. The argument at the time was that the console maker's closed ecosystem and 30% cut was justifiable due to the hardware itself not being profitable vs. Apple where the hardware is hugely profitable on it's own, thus arguing that the business models weren't comparable in terms of how much of a cut a platform owner gets. IE - without a 30% cut Apple would still make a lot of money while console makers would likely go out of business due to needing to make the hardware profitable on its own which would likely lead to greatly reduced sales of consoles as the cost would increase dramatically.

The argument then being that Apple's OS devices (iOS specifically in this case as there are other storefronts on MacOS) should be treated more similarly to PC software development as competing storefronts, while reducing Apple's revenue and profits, would not turn their mobile business ventures (phone, tablets, etc.) unprofitable or untenable.

Of course, the fly in the ointment is Nintendo which does sell their hardware at a profit. So perhaps the future of console gaming is hardware that is more similar to Nintendo's consoles than to Sony or Microsoft's consoles? :p

Regards,
SB

Apple's model is different than Google's and Apple never pretended its model was something it wasn't. Apple never tried to convey that its OS is open while using its app store as a tool to keep smartphone manufacturers from supporting forked versions of iOS with non Apple stores. It’s like opening a Walmart versus opening an open market venue where vendors pay for space and are supposed to get to sell whatever they want. But actually don't because the open market owner has rules and restrictions that forces vendors to sell only goods that provides a profit cut to the owner.

It’s hard to argue that Google wasn’t engaging anti-competitive practices when it threaten to pull Google Play support if smartphone manufacturers preloaded Epic wares on their Android based devices.
 
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What are Apple's options for changing that? eg. Console development requires a developer license regardless of tools. If Apple can't make their license fee a requirement to develop for iOS, how does that impact consoles?
Apple offer a free developer account, this you access to Xcode and the extended SDK along with the fundamental developer documentation. You can get started with tons of tutorials, resources and deploy/test software on your own personal devices. If you want to publish software on the iOS or Mac App Store then you will beed a paid ($99/year) developer account.

For developers using another IDE, Xcode is currnetly required to build and publish the version of the software for App Store distribution because only Xcode currently produces the required output the App Store expects. To the best of my knowledge, this isn't an Apple limitation, it's just that other IDE's aren't trying to replicate this functionality. Given how often Apple change their store backend, I understand why nobody would have interest in trying to replicate and endlessly update this functionality.

That said, the EU have forced Apple to allow side loading, which will roll out this year in Europe. The details aren't known yet, but this should offer an semi-official route to develop and publish apps for iOS platforms for no cost but developers will have to find your own way to distribute apps and exactly how apps will be side loaded on devices isn't yet known.

I cannot see a future where Apple limit access to Xcode. iOS lives and dies on good apps and Apple have extensive programmes to put their hardware in the hands of promising developers who cannot afford to buy a Mac. Apple have nothing to gain by limiting who can develop for their platform.
 
Apple mostly won the lawsuit, although it lost on one count (anti-steering provisions). However, in the European Union, it will have to comply with the DMA law. Still, Epic Games founder and majority stakeholder Tim Sweeney believes they are concocting a 'devious plan' of 'malicious compliance'. Here's what he wrote today on Twitter:

They are forcing developers to choose between App Store exclusivity and the store terms, which will be illegal under DMA, or accept a new also-illegal anticompetitive scheme rife with new Junk Fees on downloads and new Apple taxes on payments they don't process.

Apple proposes that it can choose which stores are allowed to compete with their App Store. They could block Epic from launching the Epic Games Store and distributing Fortnite through it, for example, or block Microsoft, Valve, Good Old Games, or new entrants.

The Epic Games Store is the #7 software store in the world (behind the 3 console stores, 2 mobile stores, and Steam on PC). We're determined to launch on iOS and Android and enter the competition to become the #1 multi-platform software store, on the foundation of payment competition, 0%-12% fees, and exclusive games like Fortnite.

Epic has always supported the notion of Apple notarization and malware scanning for apps, but we strongly reject Apple's twisting this process to undermine competition and continue imposing Apple taxes on transactions they're not involved in.


Notably, Epic will continue to argue to courts and regulators that Apple is breaking the law. In related news, Tim Sweeney was recently able to celebrate a resounding win against Google in a similar lawsuit.
 
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