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The long and short of it is that it matters when you started doing it, or more precisely how dominant you were when you started doing it. If you have strict ru
by turquoisevar 3y ago
The long and short of it is that it matters when you started doing it, or more precisely how dominant you were when you started doing it.
If you have strict rules form the get go while you’re a nobody in the relevant market, then you’re free to maintain those strict rules even if you all of a sudden became a big player (although you can’t become more strict).
This is in part because the assumption is that if your rules would’ve been too strict, then you would’ve never been able to become a dominant market player, because nobody would’ve wanted to deal with you.
If on the other hand you were open and didn’t have strict rules in place but you start changing your tune once you’re big and powerful then it could be explained as you abusing your power (i.e. luring people in with relaxed rules, only to turn up the thumbscrews once everyone depends on you).
Apple has always had a walled garden with strict rules and a 30% commission, and despite that many were happy to join. Since then they’ve not turned up the thumbscrews, in fact they’ve done the opposite by lowering the commission for the vast majority of developers.
The flip side is that they can’t go stricter and to a higher commission from here because they are too dominant now.
That’s also in part why Apple has all these hills they’re willing to die on, anything they concede now, they can never undo or return to.
They don’t have the flexibility of testing a 5% commission for example and see if that works better, because the moment they decide it didn’t work out for them and they increase it back to 15% or 30%, it can be explained as an abuse of dominance because of the people that joined in, and became dependent on them, during that test.
Smaller companies can try new pricing strategies, new monetisation strategies, etc. Sure when they announce that from now on their “free plan” is discontinued some customers might moan and complain, but they never have to worry about government intervention on the basis of antitrust.
- paulddraper 3y ago> If you have strict rules form the get go while you’re a nobody in the relevant market, then you’re free to maintain those strict rules even if you all of a sudden became a big player (although you can’t become more strict). This is in part because the assumption is that if your rules would’ve been too strict, then you would’ve never been able to become a dominant market player, because nobody would’ve wanted to deal with you. My head hurts.
- turquoisevar 3y agoI’ll simplify it for you: You can act like a dick, lock everything down and impose all kinds of shit onto your product, as long as you do it from the get go before you start being successful and don’t turn into more of a dick once you’re successful.