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What you are saying is that such business model, where a company creates a computing device, sells the device, and then continue to own the customer funnel for
by russli1993 6y ago
What you are saying is that such business model, where a company creates a computing device, sells the device, and then continue to own the customer funnel for software experiences on top of the device is illegal. If this sets a precedent, and does become the new "interpretation" for anti-monopoly laws, it would also make console business model or Amazon Kindle business model illegal. I could also make the same argument for any kind of "platform" like business. Essentially, when an entity sales one category of products, it cannot use this product's platform effect to control the sale of another category of products. What about leveraging bundling and network effect? For example, Apple Watch only works with iPhone. A person bought Apple Watch a year ago cannot buy a Android phone a year later and have the Apple Watch work as advertised when he/she first bought it. This would also be illegal under this precedent. I think this is a positive thing. But it does invalidate a lot of business model's tech companies are using right now and the higher valuations software/platform companies currently getting. It would also results in fundamental re-calculation of margins and business model for a lot of companies. Might lead to decreased valuations and revenue. This would negatively impact the shareholders, employees and company, who are also stakeholders in this discussion.
And you also cannot look at this law from an ideology perspective, you need to look at the practical affects as well. Going forward, companies will also spent energy to design how their product will interoperate with other products especially those from competitors. For example, if iOS is going to have third party App Stores, it has to be designed in the OS. It cannot be an afterthought. Comparing iOS and Android, you realize when Google built Android it actually has to spent the time and the energy to design the system that enables Android's flexibility and "multiple App Store and install any app package" system. Google has also to spend energy to maintain and support the system every year since Android's release. I know that there are instances where Google want to make changes to Android to better support their own use cases but is not able to because Google has to support these flexibility points. If you look at a from angle of "how much benefit do I get from a fixed amount of effort", flexibility and interoperability becomes significant features. I think a lot of people underestimate just how much effort it is to design, engineer, test and maintain interoperability. From a business perspective, they need to think do I spend the time to engineer and maintain systems to enable interoperability? Or to enable my business use case and enable me to make more money? By changing the law interpretation, the law is making the decision for the business. It's forcing the business to say "hey you have to spend time to build things that might end up benefiting your competitors, and perhaps you don't have time to build this feature that would benefit your bottom line instead ". Not sure where your political spectrum lies, but this definitely doesn't sit well with political conservatism that advocates for less government control over private affairs.
Again, ideally this new interpretation will be good, but I feel there will be a lot of resistance for this "reform" to go forward.
btw, if Apple is going to allow other stores and ISVs to offer users application packages to download and install freely like it is on Windows, any company of significant size is going to start bypass Apple's stores and asking users download Exe's or their own app launchers. Want to play Fortnite, download Epic store and Epic game launcher. Want to use Facebook and play Oculus games? Download Facebook store. Want to use Lightroom, download Adobe CC store. It will change the Apple's user experience, which is part of brand and product proposition. I know some people actually buy Apple because of this user experience. So is it okay for government to dictate such user experience is not allowed anymore? The private entity wants to design this kind of user experience, is it ideologically okay for the government to say "you cannot design a product this way anymore"? Maybe private entity should be able to design a product anyway they see fit, and let the market decide. Look at before there is a market for closed sourced developer tools and software. Now, there is no market for you if you don't open source your developer tools. People rather write apps for open source dbs and frameworks than some companies proprietary stuff. This is an example of market demanding openness and interoperability and making the producers change their behavior.
- restingrobot 6y agoI apologize I don't have time for an in-depth response, but a quick note is that you have some fallacies in your arguments: >it would also make console business model or Amazon Kindle business model illegal. My interpretation would not make console business illegal, but rather it would make limiting the product so that you are the only means of distribution illegal. I can currently side-load books onto my kindle without any sort of jailbreaking or modification. On my android phone I can download an .apk file and install it with no issues. The Google Play Store still makes fine profit, and the App Store would as well, even with competition. This most certainly would fall under the definition of a monopoly. >For example, Apple Watch only works with iPhone. A person bought Apple Watch a year ago cannot buy a Android phone a year later and have the Apple Watch work as advertised when he/she first bought it. You are comparing Apples to oranges. This is a lot different as a watch is hardware, not software. Plus we are talking about 1 apple software app vs another apple software app. >For example, if iOS is going to have third party App Stores, it has to be designed in the OS. No it doesn't really. It's not apple's responsibility to make it easy for third parties. If their apps do not work, it isn't apples responsibility to account for them. Furthermore, the OS can already handle "third party apps", it just has to be Jailbroken, or side-loaded via an MDM account. Any third party apps still have to use the internal SDK's of Apple in order to function. > you realize when Google built Android it actually has to spent the time and the energy to design the system that enables Android's flexibility and "multiple App Store and install any app package" system. Google did not build Android it was purchased by them in 2005. The system of installing any app is the same as installing google apps. The same with apple. There is no extra work that you're claiming, as they have to do this in order for the respective stores to work as well. This, and the comment above, are a different point that I was not making. This would be the case if Apple only allowed Apple software on their device, in which case I would not say this is a monopoly as there wouldn't be any competition for them on the iPhone. However, they do but they do not do this, so your point is moot. >they need to think do I spend the time to engineer and maintain systems to enable interoperability? This isn't a question of interoperability. These are all iOS apps. The question is simply the distribution source. I can make an app on my mac and load it directly onto my phone, but the only option I currently have for distribution is the App Store that Apple controls. Right now they charge 15% of all my purchases. Would you change your opinion if they charged 50%? I guarantee that would put some people out of business. What if apple decided to charge me 15% but you 50%, which would be perfectly within their legal right? Would you agree then that the appstore is not a monopoly? >btw, if Apple is going to allow other stores and ISVs to offer users application packages to download and install freely like it is on Windows, any company of significant size is going to start bypass Apple's stores and asking users download Exe's or their own app launchers. Yes and why shouldn't they be able to do so? That's the whole point of the lawsuit, Apple is enforcing this to cut their competition, they are effectively proping up their own monopoly. They currently own the base product, the means of distribution, the means of access, and the means of repair, (although right to repair rulings are becoming far more common).