Apple Must Decide How Badly It Wants 30% Fee After Court Ruling

Bloomberg2021-09-14

Judge questioned, but didn’t lower iPhone maker’s commission Maximizing revenue means logistical challenges, political risk Apple Inc. could tell mobile app developers that it still intends to ...

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JinDuaHuat
2021-09-14
JinDuaHuat
Ok
masran
2021-09-14
masran
hmm

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Instead, the judge wrote, “Apple could still charge a commission on developers. It would simply be more difficult for Apple to collect that commission.”\n“Apple has the legal right to do business with anyone they want,” said Paul Gallant, managing director at Cowen & Co. “So Apple could change the terms of the App Store and say to developers, regardless of where you collect your revenue, you owe us 30%, and if developers refuse to pay it, Apple would be free to de-platform them.”\nGonzalez Rogers wrote that Apple hasn’t shown that its 30% rate levied on larger-scale developers is “justified.” She didn’t ask Apple to change it, however, and found that Epic’s collection of revenue outside of Apple’s in-app-purchase system for the popular game Fortnite violated their contract and must be paid back at the 30% rate.\nOn Monday, Epic Games Chief Executive Officer Tim Sweeneysaidhis company has paid Apple $6 million for commissions it circumvented in Fortnite last year.\nBut beyond the court fight, it’s unclear how Apple would collect revenue from its large group of developers if they were to use their own web-based payment systems.\nApple Chief Executive Officer Tim Cook alluded to that challenge when he testified at the trial.\n“We would have to come up with another system to invoice developers, which I think would be a mess,” he said. Asked by the judge directly if developers would still need to pay Apple if they collected payments from consumers outside of the iPhone maker’s in-app-purchase system, Cook said: “Yes, of course.”\nIt would be an extraordinarily complex undertaking. Such a system would need to track how much money a developer is actually generating from consumers and retroactively collect a portion of it.\nAmid all the pressure Apple faces globally from lawmakers and regulators to loosen its grip on app distribution, an aggressive effort to recoup revenue from web-based purchase risks stirring an uproar.\n“The more likely path is for Apple to think seriously about reducing its commissions,” Cowen’s Gallant said. “I think the pending legislation in the U.S. and Europe and Friday’s court ruling increase the prospects for Apple to make a move on commissions.”\nCook testified that the 30% fee covers developer tools, distribution and customer service in addition to payment processing. Continuing to charge such a high rate for developers that don’t use all those services might be perceived as unfair.\nPrior to Friday’s ruling, Apple had already agreed,starting next year, to let “reader” apps -- which include video, music, news, books and other media -- to point users away from its store to complete transactions on the web. Having made that concession, Apple might find it harder to continue to collect commissions from other developers.\nThe silver lining for Apple is that some developers may decide it’s not worth the effort to leave Apple’s existing payment system in light of the benefits it offers including simplicity, refund processing, and security.","kind":"news","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":886450244,"gmtCreate":1631619275888,"gmtModify":1631890220644,"author":{"id":"3582069586264576","authorId":"3582069586264576","name":"JinDuaHuat","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":4,"crmLevelSwitch":0,"idStr":"3582069586264576","authorIdStr":"3582069586264576"},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/886450244","repostId":1165648531,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":886438818,"gmtCreate":1631613961034,"gmtModify":1631890295687,"author":{"id":"3582888796077977","authorId":"3582888796077977","name":"masran","avatar":"https://static.tigerbbs.com/5258de17f60ac17503ecfa2ededa974d","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3582888796077977","authorIdStr":"3582888796077977"},"htmlText":"hmm","listText":"hmm","text":"hmm","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/886438818","repostId":1165648531,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":25,"commentSize":2,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":false,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"laohu8","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/1165648531"}