The National Assembly of Samsung's home country has passed a bill that forces Apple and Google to allow alternative app payment systems.
Apple's options, as I see them:
Take it to court The U.N's Economic Court of Justice, that is. Apple has good lawyers and is not afraid to litigate, but this court's enforcement record is mixed.
Pay the fine The penalty for ignoring the law is 3% of Apple's South Korean earnings. Based on Apple's reported 2020 revenue for Rest of Asia, that would probably come to less than $500 million.
Swallow the loss It's only 15% to 30% of the revenue of software developers large enough to run their own payment system. Apple could afford it -- or find a way to pass on the cost.
Leave the country Or any other country that passes such a law. Only Apple knows what price it is willing to pay to keep the garden walls intact.
My take: Apple will fight like hell, but in the end will follow the laws of every country in which it does business.
https://apple.news/AqJjPy58jSlifJxPR_2nc8w
Google defended its service fees, which it says “helps keep Android free,” and gives developers “the tools and global platform to access billions of consumers around the world.”
When iOS knock off Android was introduced Google should have charged ($40?) or it, AND kept the advertising revenue a separate (unseen?) issue. I say $40 because that is what computer OEMs pay Microsoft for Windows.
My feeling is that during litigation political realities will change, as well as the hysteria surrounding the issue.
On MacOS I mostly buy apps through the App Store, but sometimes buy directly just because you can get more features that way. This has to do how Apple locks down apps sold through the App Store.
I agree that I would no longer allow for free apps with in app purchasing, the apps must cost money up front if using 3rd party payment.
In this scenario, A&G must review, approve (and all that goes into that) host, display and manage the app on the store for FREE with no chance to get any cut from developer. And when there is an issue they will have to deal with the complaints and even if they say its not my problem, tarnish their brand and image. Madness!!!!
The writing is on the wall here. Too many governments are making this more about political optics than rule of law and the current state of the world says that Apple is fighting an uphill battle, as well as an impossible-to-win game of Public Relations chess. I never thought I’d write that. 🙁
On the bright side, with flawed laws like this one being passed, then the Apple 3.0 member who raises bees and sells his own honey (I apologize for not remembering your name) will no longer have to do so at outdoor venues. He can simply walk into any Costco, Wal Mart, Albertson’s, Piggly Wiggly, Aldi’s, or any other store of his choosing and set up shop.
If any of these “Stores” deny him his absolute right to reach consumers directly, then he can call up Kahn, Vestager, Ciccillini, Klobuchar, and the rest of these brain challenged politicians and have them file an immediate antitrust enforcement action on his behalf as they’re: “stifling innovation and harming consumers!” After all, these markets are all public utilities where consumers buy food and other consumer staples.