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Not necessarily, there's a breaking point where it can't be profitable anymore to be on Apple's platform if they charge to much. That needs to factor in the mo
by simcop2387 6y ago
Not necessarily, there's a breaking point where it can't be profitable anymore to be on Apple's platform if they charge to much. That needs to factor in the money that people have to spend and the margins of the businesses making programs and services for the platform. If they charged say 70% and expected the businesses to just raise their prices then all the sudden any in app purchases and subscriptions become incredibly expensive on Apple's platform. That will drive away users from both the services and from Apple devices shrinking the size of the market for everyone there. If they existed in a vacuum (no android, no way to do out of app purchases, etc.) then things may look very different. That's the point where they'd be explicitly using their monopoly power to control prices. They can still be doing that before that point of course but it'd be very easy to prove in that hypothetical.