Apple Sued Over “Profit-Killing” Monopoly, Devs Seeking Third-Party App Stores

[The AchieVer]

Apple Sued Over “Profit-Killing” Monopoly, Devs Seeking Third-Party App Stores 

 

A lawsuit that’s seeking class-action status claims Apple relies on monopoly tactics to force its App Store on iOS developers, set a series of so-called “profit-killing” commissions, and enforce several other rules that reduce the revenue of app creators.

 

Attorneys at Hagens Berman, a law firm that in 2016 won a lawsuit against Apple over e-book price fixing, explains that Apple forcing iOS developers to distribute all their apps through the App Store is an anti-competitive approach because the Cupertino take giant takes its own cut of each sale.

“Between Apple’s 30 percent cut of all App Store sales, the annual fee of $99 and pricing mandates, Apple blatantly abuses its market power to the detriment of developers, who are forced to use the only platform available to them to sell their iOS app,” said Steve Berman, managing partner of Hagens Berman is quoted as saying by Yahoo News. “In a competitive landscape, this simply would not happen.”Third-party app stores on the iPhoneFurthermore, the lawsuit claims Apple uses an anti-competitive set of rules for apps published in the App Store, such as the prices that must end in .99.

One of the claims, however, accused the Cupertino company of not allowing third-party app stores on its platforms on grounds that this is the only way to guarantee a high level of user security.

“Apple admits that it shuts out all competition from app-distribution to iOS device consumers, ostensibly to protect its device customers from bad apps and malware,” the suit reads. “But this is overblown pretense. There is no reason to believe that other reputable vendors, including Amazon, for example, could not host an app store and provide a trustworthy app-distribution system if Apple were to open up its system to other providers.”

The lawsuit alleges that by having no other option than the App Store, developers could end up not being able to promote their apps accordingly, as the always-growing collection of apps in just one store makes it harder for smaller app creators to make themselves noticed.

Apple hasn’t obviously responded to these claims. The lawsuit accuses the company of violating the federal antitrust law and the California unfair competition law.

 

 

 

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[Jogs]

Thats why I dislike these app-stores. They are always monopolistic, they never allow apps that they themselves don't like, for example Adguard is not allowed on Play Store.

[steven36]

1 hour ago, Jogs said:

Thats why I dislike these app-stores. They are always monopolistic, they never allow apps that they themselves don't like, for example Adguard is not allowed on Play Store.

Apple is facing Anti-Trust  investigations for  removing certain apps  once they  heard they was they caved . But really there only a monopoly on there platforms .  In the big scheme of things Google holds  the monopoly on smart phones

 

 

Mobile Operating System Market Share Worldwide - May 2019

 

Android 75.27%

 

iOS 22.74%

 

KaiOS 0.75%

 

Unknown 0.32%

 

Windows 0.24%

 

Samsung 0.22%

 

No were did any consumers complain only it was DEVS who make apps  complain  because  Apple pays  Devs better  than Google  . Only reason Apple makes any money   is they charge 3 prices for it ,  That's Phones  and Desktop  so really there not a monopoly . As far as Android  anything  not in the play store you can install  it anyway  . With Apple it not so easy  Android have all kinds of apps  you can't install on Apple IOS  . But really no one cares but DEVs  people have just been switching to Android for years because it's cheaper and you have more control tell now over what you can install , When Big game companies pulled  there games from Play Store they still done very good  without it  by just making there games available  elsewhere. Maybe one day Google will lock down there OS like Apple has but they yet to do it and that will be another story if they do .

 

Even Open Source Linux Have Walled Gardens on some Distros  it's just a option because you can install apps many different ways .  Stuff like Apple locking down there Platforms is the very reason  they    always will be a 2nd place OS  . Even Microsoft lets you install apps outside there store and they even caved and are now letting Win 32 apps in the store .  And Apple wonders why they have low Market Share . They have  what they need to succeed.  They make lots of devices  with there OS but the downside of apple is it to expensive and there OS is a jail  that most people hate.  A Store can be very handy it just depends on if the people who owns the store runs it right or not,

[The AchieVer]

Apple CEO Denies Monopoly Claims, Reiterates Privacy Focus 

 

Apple is being accused of using monopoly tactics in the App Store, favoring its own services and increasing revenue with a 30% cut on all sales made by developers, but as far as CEO Tim Cook is concerned, this is not the case.

Cook addressed the claims in an interview with Norah O’Donnell of CBS News, pointing out that while being scrutinized by the government is the correct approach, Apple doesn’t “have a dominant position in any market.”

“We are not a monopoly,” Apple’s CEO said.Focus on privacyCook went on to respond to criticism regarding the App Store, which was described by many as one of the weapons the Cupertino-based tech giant uses as part of its monopolistic strategy.

Presidential candidate Sen. Elizabeth Warren recently called for Apple to break up the App Store, while a lawsuit filed this week accused the company of violating competition rules by blocking third-party app stores on iOS and forcing developers to publish apps in the App Store.

“I strongly disagree with that. I think some people would argue, if you are selling a good, then you can't have a product that competes with that good. And I think that's part of what is being argued there. But that's an argument that takes you down the path that, Walmart shouldn't be stocking alternative or house brand. And so this is decades of U.S. law here. But I think scrutiny is good, and we'll tell our story to anybody that we need to or wants to hear it. I feel very confident in our position,” Cook said.

Apple’s CEO eventually reiterated the privacy focus of the company, explaining that most of what they do these days is supposed to protect customers.

“You know, we're on the user's side. We're on the user's side in privacy. We're on the user's side in trying to prevent fake news. And so we curate, and we've always done that. We're not an amplifier for fake news or pitting groups against one another or having porn or all this other kind of stuff. This is not what we're about, and we've never been about that,” he said.

Cook also explained that Apple hasn’t yet been hit by the trade war between the United States and China, albeit he admitted that a potential tariff on the iPhone XS could make the device more expensive worldwide.

 

 

 

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