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It doesn't really matter for Epic whether only they get a cut, or if everyone else does too. I imagine the former would be preferable to have an edge over compe
by m11a 6y ago
It doesn't really matter for Epic whether only they get a cut, or if everyone else does too. I imagine the former would be preferable to have an edge over competitors, but it's also unrealistic and they'd be unable to play that card and have a chance in court. Epic isn't being altruistic here.
> An App Store without competing stores and payment systems ultimately hurts the consumer, because Apple is not forced to compete on quality and price.
Apple, as a payment processor, shouldn't have to compete on price on the App Store. The fees from the App Store/IAP subsidise other operations. If they were competing solely as a payment processor it'd be impossible to charge more than 3% frankly, so they'd have to hike up prices elsewhere to make up the loss. App Store payments accounted for 6% of their 2019 revenue. I think Apple is entitled to decide on the pricing structure to fund its operations. There's only a competition issue when it comes to Spotify v Apple Music, or Netflix v TV+, or other competing products.
That said, 30% is a little ridiculous, imo, and it should be lower. Still, Apple isn't unique in charging merchants a %, which is done by many orgs from the Steam Store to the payment networks themselves, and fixed charges are even more common in many B2B situations.